As this shipping ETF is fully focused on freight shipping it is obvious that this ETF is very sensitive for global market conditions. This makes it a reasonably predictable ETF which is a good sign. In total you will only find 25 stocks of publicly traded shipping companies in this shipping ETF.
Shipping companies tend to suffer from over capacity on a regular basis. High oil prices also are a main factor that may impact profitability. If a situation of shortage in ships will occur and oil prices are on a reasonable level then these companies see their profits rise sharply. This shipping ETF will follow suit then of course.
Guggenheim Shipping ETF
This particular Guggenheim ETF is tracking the Dow Jones Global Shipping index. Talking about the Dow Jones you may assume that only US based companies are included but that is not the case. Dow Jones is a provider of a wide variety of indices that track financial markets and market sectors from all over the world.
Within this Guggenheim Shipping ETF you will find companies from all over the world who in most cases are not listed on the US stock exchange. In order to be included in this shipping index and subsequent ETF a shipping company must be active in shipping goods and produce, no passenger carriers are included.
The Dow Jones requirements to be listed here are very strict. The result is that you will find only the top global shipping companies within this shipping ETF.
The largest shipping company in this index and shipping ETF is AP Moeller Maersk A/S with a 25% share. Nippon Yusen is number 2 with almost 20%. Then you will find Cosco Pacific and Kawasaki Kisen Kaisha with 5% each.
Looking at its geographical spread the United States is number 1 here with a 30% share followed by Denmark (due to Maersk) with a share of slightly less than 20%. Japan is good for 10% and Greece finds itself with a share just below 10%.
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Guggenheim Shipping ETF info:
ETF provider: Guggenheim
Exchange: NYSE Arca VS