Can investors capitalize on supply chain disruptions? New ETF opportunity
WAs the global economy recovers, supply chains have grabbed the headlines. What gets lost in the noise is how the shipping and air freight industries will potentially benefit from the huge synchronized rebound in global trade, as fiscal stimulus appears to fuel consumption.
In the next webcast, can investors capitalize on supply chain disruptions? New ETF Opportunity, Frank Holmes, CEO of US Global Investors, will explore how an imbalance of supply and demand, in part due to COVID-19 and the upcoming holiday season, can be a boon for investors seeking potentially improve their portfolios in the future.
For example, US Global is currently working on the ETF US Global Sea to Sky Cargo (NYSEArca: SEA), which will follow the US Global SEA Index. The Underlying Index includes companies involved in shipping, air freight / couriers or other transportation sectors, as determined by independent industry listings (collectively, “Freight Companies”) with an allocation 70% of the index weighting to shipping companies. and 30% to air cargo companies at the time of each quarterly index replenishment and rebalancing, according to an SEC exemption filing.
Specifically, the top six shipping companies with a combined ranking of market capitalization, return on cash flow on invested capital, cash flow against price, and profit against price each get a weighting of 5%. . The following seven shipping companies based on a combined ranking of market capitalization, return on cash flow on invested capital, cash flow against price and earnings against price each get a weighting of 4%. The following six shipping lines based on a combined ranking of market capitalization, cash flow return on invested capital, cash flow to price ratio and earnings to price each get a weighting of 2%. Finally, the top 10 air freight companies based on a combined ranking of market capitalization, return on cash flow on invested capital, cash flow over price, and profit over price each get a weighting of 3. %.
In addition, investors have turned to the ETF US Global Jets (NYSEArca: JETS) as a means to access recovery in the global airline industry. JETS has also become a popular mechanism for many retail investors to gain diverse exposure to the airline industry instead of betting on individual airliners. JETS tracks the US Global Jets Index, which uses fundamental screens to select airlines, with a focus on domestic airlines, as well as global aircraft manufacturers, airport companies, internet media, and others. airline related services.
Financial advisors interested in learning more about the global supply chain can register for the Thursday, December 9 webcast here.
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