ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Multifactor
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. USGI Chief Talks Logistics of Investing in Air & SEA
News
Share

USGI Chief Talks Logistics of Investing in Air & SEA

James ComtoisJan 20, 2022
2022-01-20

U.S. Global Investors today launched the U.S. Global Sea to Sky Cargo ETF, which is available to trade on the New York Stock Exchange. The new fund seeks to provide diversified access to the global sea shipping and air freight industries.

Frank Holmes, CEO and CIO of U.S. Global Investors, explained via email why the company launched this new ETF, and how he believes the pandemic and a growing global middle class will dramatically alter the state of shipping and logistics companies for the better.

ETF Trends: What makes now a proper time to launch a fund focused on global shipping and air freight?

Frank Holmes: As people were locked down due to the pandemic, their spending habits flipped from services to goods. This has caused a massive global supply chain imbalance that may take many months to untangle, giving shipping and logistics companies incredible pricing power.

ETF Trends: What does the breakdown between countries say about the fund’s objective?

Frank Holmes: The fund country breakdown points to the global perspective we wanted to capture in the fund. It also relates directly to a play on global purchasing managers’ index (PMI) numbers, as not only a leading indicator in this space, but a way to potentially capitalize on these trends and the growth of the global middle class.

ETF Trends: Looking at the “perfect storm” of disruptions, what is there to expect from the upcoming holiday season in relation to the fund?

Frank Holmes: We see shipping rates remaining extremely elevated through the holidays and well into 2022. This should support shares of container carriers, air freight companies, and logistics companies.

ETF Trends: What other factors are being looked at in terms of how SEA will be affected in the next few months?

Frank Holmes: The semiconductor shortage plays a key role here. Because everything uses chips today, new shipping capacity has been slow to come online, even as new orders have soared. This is contributing to the historic pricing power that shipping companies are enjoying right now.

ETF Trends: What are the long-term expectations for SEA?

Frank Holmes: So far this century, trade has steadily increased with few interruptions as the number of people classified as middle class has continued to expand, particularly in China and India. Although the pandemic has stalled household income growth in some regions, an incredible one billion Asians are forecast to join the middle class by 2030. Most of them will seek a middle-class lifestyle filled with appliances, gadgets, and more, all of which should support shipping and logistics companies years into the future.

For more news, information, and strategy, visit ETFdb.


Content continues below advertisement

» Popular Pages

  • Tickers
  • Articles

Jun 02

A Cash Alternatives ETF With a Distribution Yield Over 6%

Jun 02

Treasury Yields Snapshot: June 2

Jun 02

Main Management Market Note: June 2, 2023

Jun 02

China’s EV Market Recovers, Keep an Eye on KARS

Jun 02

A Debt Limit Deal Is Made, Target Treasuries of Any Duration

Jun 02

This Week in ETFs: Only 2 Launches, Many Closures

Jun 02

As Summer Nears, Eye Travel Stocks in JRNY

Jun 02

NYSE’s ETF Leaders: Northern Trust’s Michael Natale

Jun 02

Seize Market Gains & Optimize Dividends With KVLE

Jun 02

VettaFi Voices: Active or Passive for ESG ETFs?

QQQ

Invesco QQQ Trust

SPY

SPDR S&P 500 ETF Trust

JEPI

JPMorgan Equity Premium...

VTI

Vanguard Total Stock Market...

VOO

Vanguard S&P 500 ETF

VGT

Vanguard Information...

TLT

iShares 20+ Year Treasury...

BND

Vanguard Total Bond Market...

XLP

Consumer Staples Select...

BOTZ

Global X Robotics &...


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X