NYSE-Powered ETF Leaders: Frank Holmes
At the exchange: a ETFs Experience 2022, US Global Investors CEO and CIO Frank Holmes said “we spend a lot of money” on shipping, noting that “we’ve seen the cost of shipping increase sixfold”. In mid-January, US global investors spear. Sea to Sky Global Freight ETFs (SEA ), which aims to provide diversified access to the global shipping and air cargo industries.
SEA is the company’s third ETFs following the US Global Jets ETFs (JETS )and the GO worldwide to USA GOLD and precious metal miners ETFs (GOAU).
Comprised of common stocks listed on stock exchanges in developed and emerging markets around the world, SEA uses a smart-beta 2.0 strategy to determine the most efficient shipping and air freight companies in the world. Cargo ships represent around 70% of the ETFswhile air freight companies account for around 30%.
“I really respect the law of mean reversion,” Holmes said. “So as things have grown, some categories exponentially, a reversal of the average will take place. So I think some of these big sells are exponential and will probably get a big bounce here.
When US Global Investors launched SEAHolmes told VettaFi editor Lara Crigger for ETFs Leaders, powered by the New York Stock Exchange, that he “was very concerned” because the market cratered during its launch. But when US Global launched SEAprices in the shipping industry “have gone up”.
“Russia is invading Ukraine, and all of a sudden it’s going up, because the shipping companies have such power” to raise prices now that “they can’t fly over Russia.”
“They’re going to charge you more if you want a new car to cross the Pacific,” Holmes added. “So I think it’s just acknowledging those rebounds.”
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