Geopolitical tensions have impacted oil flows and shifted traditional routes. Increasing demand and evolving environmental regulations will continue to impact the cost of transporting crude oil worldwide, creating a unique investment opportunity for the years to come. BWET provides investors with direct exposure to crude oil freight futures with the simplicity of trading an ETF.
“We are thrilled to introduce such an innovative product to the market, targeting another segment of the shipping industry, namely tankers,” said John Kartsonas, founder and managing partner of Breakwave Advisors, a commodity trading advisor based in New York City specializing in shipping and freight investments. “The tanker market has recently shown its growing importance when it comes to energy security as well as the significant returns the sector can generate over the full cycle.”
“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,” Mr. Kartsonas added. “As has been the case with BDRY, BWET allows all market participants to directly invest in an otherwise difficult to access market using a simple, transparent, equity-like investment product.”
“We’ve seen that investors are seeking exposure to the supply chain,” says Matthew Bromberg, COO of ETFMG. “There is an under investment in shipping capacity and crude oil tankers represent nearly one-third of the global shipping transportation capacity. BWET is the first of its kind to provide this unique access to oil transport futures contracts.”
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 Fund intends to progressively increase its position to the next calendar quarter three-month strip while existing positions are maintained and settle in cash. The initial tanker crude oil freight futures allocation will be 90% Very Large Crude Carriers (VLCC) contracts and 10% Suezmax contracts, rebalancing annually.
ETFMG is a provider of exchange-traded funds (ETFs), founded in 2014 with a vision of developing innovative thematic ETFs that provide investors unique exposure to new markets. Today, the ETFMG fund lineup provides access to a diverse collection of global themes and is comprised of 75% first-to-market products. We turn portfolio management strategies into successful ETFs by partnering with market segment experts to bring long-term growth opportunities to investors. ETFMG funds are proof of the power of the ETF wrapper and that thematic products can have a place in investors’ portfolios. To learn more about ETFMG and our portfolio of exchange-traded funds, please visit www.etfmg.com.
About Breakwave Advisors Breakwave Advisors is registered as a Commodity Trading Advisor with the NFA, founded in 2017 and based in New York City. The advisor specializes in Shipping and Freight investments and is the CTA for the Breakwave Dry Bulk Shipping ETF as well as the Breakwave Tanker Shipping ETF
Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund’s prospectus, which may be obtained by calling 1-844-ETF-MGRS (1-844-383-6477), or by visiting www.etfmg.com/BWET. Please read the prospectus carefully before investing. Investing in freight futures can be volatile and is not suitable for all investors.
The Fund is not a mutual fund or any other type of investment company within the meaning of the Investment Company Act of 1940, as amended, and is not subject to regulation thereunder.
An investment in the Fund involves significant risks. You could lose all or part of your investment in the Fund, and the Fund’s performance could trail that of other investments. The value of the Shares of the Fund relates directly to the value of, and realized profit or loss from, the freight futures and other assets held by the Fund, and fluctuations in price could materially affect the Fund’s shares. Investments in crude oil freight futures typically fluctuate in value with changes in spot charter rates. Charter rates for oil tanker vessels are volatile and although they have increased from historically low levels, there is no guarantee that shipping rates for crude oil will remain at current levels. The Fund will not take defensive positions to protect against declining freight rates, which could cause a decline to the value of the Fund’s shares.
Although the Fund’s shares are listed and traded on the NYSE Arca, there can be no guarantee that an active trading market for the shares will be maintained. If an investor needs to sell shares at a time when no active trading market for them exists, the price the investor receives upon sale of the shares, assuming they were able to be sold, likely would be lower than if an active market existed.
Breakwave Advisors LLC (“Breakwave”) is a registered “commodity trading advisor” with the NFA and will act as such for the Fund. Breakwave specializes in shipping and freight related investments.
ETF Managers Capital LLC serves as the “commodity pool operator” to the Fund and is registered in such capacity with the NFA.
The Fund is distributed by ETFMG Financial LLC. ETF Managers Capital LLC and ETFMG Financial LLC are wholly owned subsidiaries of Exchange Traded Managers Group LLC (collectively, “ETFMG”). ETFMG is not affiliated with Breakwave Advisors LLC.
The Fund is intended to be made available only to U.S. residents. Under no circumstances is any information provided on this website intended for distribution to or use by, or to be an offer to sell to or solicitation of an offer to buy the Fund or any investment product or service of, any person or entity in any jurisdiction or country, other than the United States, where such distribution, use, offer or solicitation would subject the Fund or its affiliates to any registration requirement or be unlawful under the securities laws of that jurisdiction or country.