The Middle East conflict is leading to longer shipments for crude oil. Longer voyages mean more costs and longer wait times, which can boost prices by increasing overhead and prompting “spot buying.” That’s why I like the Breakwave Tanker Shipping ETF (BWET)
Spot buying is when countries or companies try and take oil on the open market at a higher price. These longer voyages also mean the cost of shipping contracts becomes much, much higher. Fortunately, the smart minds on Wall Street have developed an ingenious and creative financial instrument designed to take advantage of these longer, more expensive routes: BWET.
Breakwave Tanker Shipping ETF (BWET)
BWET is the first, and only, freight futures ETF exclusively focused on crude oil tanker freight rates. It’s designed by the big brains at fund issuer Amplify to profit from increases in oil freight futures beyond what is already priced in the market.
By definition, the BWET is an ETF designed to reflect the daily price movements of indices that track the future cost of transporting crude oil. BWET offers investors unlevered exposure to oil tanker futures without the need for a futures account.
One thing I love about this play here is that rather than holding individual companies in the sector, the fund holds futures contracts on the value of these longer, alternative shipping routes. So, you get all of the benefits of the Iran war pressures on shipping without actually having to be exposed to shipping, insurance, or oil and gas stocks.
Recommended Action: Buy BWET.
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