According to CNBC, the Breakwave Tanker Shipping ETF (BWET) is up roughly 3,600% year to date as of early September, making it the best-performing non-levered fund in the U.S. The fund tracks the cost of shipping oil rather than crude prices, and its gains have been driven by disruptions to tanker traffic through the Strait of Hormuz, Iran-backed Houthi attacks on Red Sea shipping lanes, and other route bottlenecks that have pushed Middle East tanker rates up close to 500% year over year, according to BWET's Sept. 8 tanker report.
John Murillo, chief business officer at B2BROKER, said the ETF is tied to the cost of moving crude, not the oil price itself, while Kyle Peacock of Peacock Tariff Consulting said tariffs, drought and vessel shortages have also tightened shipping capacity. BWET said in its latest report that rapid freight-rate gains have triggered significant new vessel ordering, but it expects a longer-term industry downcycle once supply catches up. The article also noted that U.S. Global Sea to Sky Cargo ETF (SEA) is up 42% year to date and SonicShares Global Shipping ETF (BOAT) is up 70% year to date, both through Sept. 11.