John Kartsonas-led Breakwave Advisors yesterday debuted the world’s first tanker shipping exchange traded fund (ETF) on the New York Stock Exchange. The Breakwave Tanker Shipping ETF (BWET) provides long exposure to the crude oil tanker shipping market through a portfolio of near-dated futures contracts on indices that measure the cost of shipping crude oil.
BWET will hold crude oil tanker futures contracts with a weighted average of approximately three months to expiration, using a mix of one- to six-month freight futures, based on the prevailing calendar schedule. The initial tanker crude oil freight futures allocation will be 90% VLCC contracts and 10% suezmax contracts, rebalancing annually.
“Today, the tanker industry is faced with high demand for oil transportation, a limited vessel orderbook, disruptions in the traditional shipping routes, and longer shipping distances as a result of the major geopolitical changes affecting the oil markets,” said Kartsonas, the founder of Breakwave Advisors.
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