Breakwave Tanker Shipping ETF up nearly 5,100% amid U.S.-Iran tensions
Business
The Breakwave Tanker Shipping ETF (BWET) just pulled off a massive leap, up nearly 5,100% in the past year, making it the best-performing nonleveraged fund in the US.
What's behind this wild growth? Ongoing U.S.-Iran tensions have disrupted major shipping routes, sending supertanker freight rates through the roof and giving BWET an unexpected boost.
Shipping detours drive crude costs
With Yemen's Mokha port now controlled by Iran-backed rebels and Saudi Arabia shutting down a key oil pipeline after drone attacks, shipping companies are steering clear of risky waters.
That means longer detours and record-high costs to move crude oil.
BWET's strategy, which tracks oil tanker shipping rates, has paid off big time.