BWET's 995% YTD surge came from wet freight futures, but its 3.50% fee and zero dividends make BOAT a more sustainable hold.
BOAT's most recent quarterly dividend jumped to $1.01 from $0.43 the prior quarter, funded by cash returns from Frontline and Maersk.
Selling BWET in a taxable account triggers ordinary-income tax on short-term gains, making a partial trim to 2-3% the smarter exit.
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The Breakwave Tanker Shipping ETF (NYSE:BWET) has been the trade of the year. A fund that opened in 2026 near $19 now trades at $210.96, a 995.07% year-to-date move driven by a spike in tanker freight rates. BWET is the purest instrument for that trade because it holds wet freight futures directly, and that structural purity is also its main drawback. An alternative for continued exposure to the shipping cycle without owning a futures-based fund that resets monthly is the SonicShares Global Shipping ETF (NYSEARCA:BOAT), which holds companies that actually move cargo.
The freight fund tracks the Breakwave Wet Freight Futures Index via a commodity pool structure. When spot tanker rates spike, near-month futures reprice higher, and the fund captures the move almost dollar-for-dollar. Over the past year, the price rose 1,761.96%, from $11.33 to the current level.
Two structural facts weigh against holding it from here. First, the fund charges a 3.50% expense ratio, which is among the highest in the U.S. ETF universe. Second, it pays no dividends. When the futures curve flips into contango (later-dated contracts priced above the front month), the fund loses value each month it rolls forward, even if spot rates hold flat. The 600%-type run happens when the curve is in steep backwardation, and reversion works in both directions.
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The shipping equity ETF holds 51 shipping operators across tankers, container lines, and bulk carriers. Its top position is Frontline PLC at 6.00%, the same tanker operator whose earnings power drives the spot rates that the freight fund's futures reference. Other top holdings include Mitsui OSK Lines (5.70%), SITC International (4.93%), Kawasaki Kisen (4.90%), and A.P. Moller-Maersk (4.80%).
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