US Global Investors Announces Launch of US
San Antonio, TX, Jan. 19, 2022 (GLOBE NEWSWIRE) — US Global Investors, Inc. (Nasdaq: GROW) (“the Company”), a registered investment advisory firm that focuses on specialty markets around the world , is delighted to announce that her US Sea to Sky Cargo (SEA) Global ETF will begin trading tomorrow, January 20, on the New York Stock Exchange (NYSE).
SEA seeks to provide diversified access to the global shipping and air cargo industries. Comprised of common stocks listed on stock exchanges in developed and emerging markets around the world, the ETF uses a smart-beta 2.0 strategy to determine the world’s most efficient shipping and air freight companies. Freighters make up about 70% of the ETF, while air freight companies make up about 30%.
SEA is the Company’s third ETF after the US Global Jets ETF (JETS), launched in April 2015, and the US Global GO GOLD and Precious Metal Miners (GOAU) ETF, launched in June 2017. SEA represents a merger of the Company’s long-standing experience investing in the global resource and commercial airline industries.
Frank Holmes, the company’s CEO and chief investment officer, said it could be an attractive time for investors to consider the shipping industry.
“After years of boom and bust cycles, container shipping companies now appear to have benefited greatly from favorable pricing power,” says Mr Holmes. “As global demand has returned to pre-pandemic levels much earlier than expected, shipping companies have been disciplined in capacity growth as too many vessels and routes could oversaturate the market. As a result, shipping rates remained very high until the end of 2021. The average global rate to ship a 40ft container was nearly $9,300 in December 2021, three times higher than the same month a year earlier, according to data provided by Freight. marketplace operator Freightos.
Mr. Holmes is also Executive Chairman of HIVE Blockchain Technologies, Inc. (“HIVE”), a Canadian crypto-mining company that depends on global shipping for its mining hardware.
“Last year, HIVE spent millions of dollars on application-specific integrated circuit (ASIC) miners, all shipped from China,” Ms. Holmes says. “It was the kind of first-hand experience that inspired the idea of SEA.”
In addition to container shipping companies, SEA is also looking to invest in air cargo carriers, which have seen their volume increase well beyond pre-pandemic levels. According to the International Air Transport Association (IATA), worldwide freight tonne-kilometres (CTKs) increased by 9.4% in October 2021 compared to the same month in 2019.
SEA’s additional exposure to the air cargo industry helps differentiate it from its shipping ETF peers, many of which simply follow an index.
“One shipping ETF in particular, which launched in August 2021, is an indexed fund that has no exposure to air cargo,” says Holmes. “I think this is an oversight, as demand for air cargo services has increased significantly since the start of the pandemic, with consumers shifting much of their spending from services to goods.
“It is important for investors to be aware that global trade is a long-term, secular story, at the center of which is the global middle class. So far this century, trade has grown steadily with little interruption, as the number of people classified as middle class has continued to rise, especially in China and India. Although the pandemic has stalled household income growth in some regions, an incredible billion Asians are expected to join the middle class by 2030, according to the World Data Lab. Most of these new entrants will likely be looking for a middle-class lifestyle, which we believe will support transportation and logistics businesses for years to come. »
To learn more about the Sea and Sky Cargo (SEA) ETF, click here.
About US Global Investors, Inc.
The history of US Global Investors dates back over 50 years when it began as an investment club. Today, US Global Investors, Inc. (www.usfunds.com) is a registered investment adviser focusing on niche markets around the world. Based in San Antonio, Texas, the company provides fund management and other services to US global investor funds and US global ETFs.
Forward-Looking Statements and Disclosure
Please carefully consider a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a statutory and summary prospectus by visiting www.usglobaletfs.com. Read it carefully before investing.
Investing involves risk, including possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV, and are not individually redeemed by the fund. Brokerage commissions will reduce returns. Because the fund concentrates its investments in specific sectors, the fund may be subject to greater risks and fluctuations than a portfolio representing a wider range of sectors. The fund is undiversified, meaning that it can concentrate more of its assets in fewer issuers than a diversified fund. The fund invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets. The fund may invest in securities of small capitalization companies, which may be more volatile than funds that invest in larger, more established companies. The performance of the fund may differ from that of the index. Because the fund may employ a representative sampling strategy and may also invest in securities that are not included in the index, the fund may experience tracking error to a greater extent than a fund that seeks to replicate an index. The fund is not actively managed and may be affected by a general decline in the market segments linked to the index. Airlines may be adversely affected by a downturn in economic conditions which may result in lower demand for air travel and may also be significantly affected by changes in fuel prices, labor relations and travel costs. ‘assurance.
Smart beta refers to a type of exchange-traded fund (ETF) that uses a rules-based system to select investments for inclusion in the fund’s portfolio. A positive cash flow indicates that a business is increasing its cash reserves, allowing it to reinvest in the business, pay out cash to shareholders, or settle future debt payments. A tonne-kilometre is a unit of measurement for freight transport that represents the transport of one tonne of goods (including packaging and tare weights of intermodal transport units) by a given mode of transport over a distance of one kilometer . The Freightos Baltic Daily Index measures the daily price movements of 40ft containers in 12 major shipping lanes. It is expressed as an average price per 40-foot container.
The outbreak of the COVID-19 pandemic and resulting actions to control or slow the spread have had a significant detrimental effect on global and national economies, financial markets and industries, including airlines. US Global Investors continues to monitor the impact of COVID-19, but it is too early to determine the full impact this virus may have on commercial aviation. If this emerging macroeconomic risk persists for an extended period of time, there could be a material adverse financial impact on the US Global Jets ETF.
Distributed by Quasar Distributors, LLC. US Global Investors is the investment advisor to SEA.
All opinions expressed and data provided are subject to change without notice. Opinions are not guaranteed and should not be considered investment advice.
Global shipping rates remained high
Air cargo volume surpassed pre-pandemic levels