The fund posting biggest gains of all on Iran war oil shock
The Breakwave Tanker Shipping ETF has seen massive gains due to geopolitical instability in the Middle East affecting oil transport routes. Investors are betting on the rising costs of shipping crude oil through the Strait of Hormuz.
Why it matters
This highlights how geopolitical conflicts in the Middle East create unique, high-yield investment opportunities in the shipping and logistics sectors.
As investors hunt for investment gains across the globe and diverse asset classes, from U.S. AI stocks to inflation hedges and crude oil contracts, something more mundane operating in the shadows of the global economy has racked up the biggest gains of all: freight tankers.
The Breakwave Tanker Shipping ETF ( BWET ), which tracks the price of shipping oil , is up roughly 3,600% year-to-date as of early September, according to Morningstar data through Sept. 11, making it the best-performing non-levered fund in the U.S., as the U.S.-Iran conflict squeezes tanker traffic through the Strait of Hormuz turning a once-obscure freight investment into one of Wall Street's best trades.
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