SonicShares launched a new exchange-traded fund (ETF) last week that focuses on the global shipping industry. The SonicShares Global Shipping ETF (NYSE Arca:BOAT) began trading on Aug. 4 and its portfolio includes 50+ stocks that the company says "can directly benefit from the expected ongoing demand for global shipping services." The company claims the fund gives investors the opportunity to invest in "the only pure-play maritime shipping company ETF in the United States."
The company points to the Suez Canal blockage earlier this year that caused disruptions in supply chains as evidence of how important the shipping industry is for economies all over the world.
And as countries slowly get the coronavirus pandemic under control, SonicShares believes the ETF will give investors a great opportunity to invest in the global economic recovery, which would create an increase in products being shipped all over the world. The top three holdings in the ETF each make up more than 8% of the total net assets. They include Castor Maritime (NASDAQ:CTRM), Atlas Corp (NYSE:ATCO), and Costamare (NYSE:CMRE).
The fund has a gross expense ratio of 0.69% which doesn't make it a terribly cheap option compared to other funds, but given the rarity and specialization of the ETF, it could be worth it for investors looking to gain exposure into this specific segment of the market.
SonicShares focuses on thematic investing and it also has a fund that focuses on travel – the SonicShares Airlines, Hotels, Cruise Lines ETF (NYSE Arca: TRYP), which launched earlier this year.