Growing tensions in the Red Sea, a crucial artery for international trade, have sparked a significant shift in the shipping industry. This shift, we believe, offers a compelling case for global shipping stocks.
As many readers are already aware, Iran-backed Houthis have recently attacked tankers and cargo vessels sailing through the Red Sea, a passage used by about 12% of global trade. These disruptions, which are related to the Israel-Hamas War, have prompted shippers to seek alternative, though costlier, routes, including around Africa’s Cape of Good Hope.
In this webcast, U.S. Global Investors CEO Frank Holmes will discuss ways investors can diversify their portfolios with shipping names via the U.S. Global Sea to Sky Cargo ETF (NYSE: SEA).
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Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a statutory and summary prospectus for SEA by visiting usglobaletfs.com. Read it carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the funds. Brokerage commissions will reduce returns. Because the funds concentrate their investments in specific industries, the funds may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries. The funds are non-diversified, meaning they may concentrate more of their assets in a smaller number of issuers than diversified funds.
The funds invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets. The funds may invest in the securities of smaller-capitalization companies, which may be more volatile than funds that invest in larger, more established companies. The performance of the funds may diverge from that of the index. Because the funds may employ a representative sampling strategy and may also invest in securities that are not included in the index, the funds may experience tracking error to a greater extent than funds that seek to replicate an index. The funds are not actively managed and may be affected by a general decline in market segments related to the index.
Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. By investing in a specific geographic region, such as China and/or Taiwan, a regional ETFs returns and share price may be more volatile than those of a less concentrated portfolio.