A distinct segment ETF offering publicity to dry bulk transport futures has had the wind firmly in its sails this yr, notching up an unbeaten return of 192% as of the top of Might, in response to information from international ETF analytics platform Trackinsight.
The Breakwave Dry Bulk Delivery ETF (BDRY US) has left all different ETFs trailing in its wake with the second-highest-performing ETF – the Invesco Dynamic Vitality Exploration & Manufacturing ETF (PXE US) – returning 67.6%.
Dry bulk transport futures replicate the price of transporting main laborious commodities comparable to iron ore, coal, and grain, in addition to different commodities comparable to bauxite and phosphate, minerals, fertilizers, and forestry merchandise.
The ETF, which comes with a punchy expense ratio of three.32%, invests in a mixture of one- to six-month freight futures whereas concentrating on a weighted common maturity of roughly three months.
The price of transport has skyrocketed this yr as a result of a mixture of things together with hovering international demand for commodities, rising market volatility, saturated ports, and an undersupply of ships.
Regardless of the ETF’s unimaginable efficiency, the fund has solely seen modest inflows of $38 million year-to-date, maybe indicating that the technique is just not on many traders’ sonar.
Whereas the dry bulk transport ETF has blown the competitors out of the water, a number of different ETFs have additionally delivered robust returns, most notably within the conventional power sector. Trackinsight notes that eight of the highest ten finest performing ETFs globally spend money on the oil and gasoline sector and all have delivered greater than 50% year-to-date.
After a disastrous 2020, the power sector is benefitting from elevated oil demand as the worldwide financial system progressively reopens. With oil costs again up round $70, many producers are discovering themselves comfortably in a worthwhile place once more.
Turning to flows, Trackinsight notes that gold ETFs reversed three months of unfavourable flows to select up $3.3bn in internet new property in Might. The renewed curiosity in gold displays traders’ want to batten down the hatches from the specter of rising inflation looming on the horizon.
Silver ETFs additionally added $515m internet new property in Might, bringing whole AUM inside these funds to an all-time document of $27bn.
Spooked by ongoing volatility and more and more hostile rhetoric from politicians and regulators, some traders deserted ship on their bitcoin ETPs with a internet $150m redeemed from these merchandise in Might, marking the primary month of outflows since June 2020. Unfavorable flows, coupled with worth crashes in bitcoin, have seen property within the nascent sector shrink from $6.6bn in Might to $4.1bn in June.