Breakwave Dry Bulk Shipping ETF (BDRY)

ETF Breakwave Dry Bulk Shipping ETF Summary

Profile:

Breakwave Dry Bulk Shipping ETF (BDRY) is an actively managed exchange-traded fund focusing on dry bulk shipping equities. It invests in companies involved in the ownership and operation of dry bulk vessels, such as capesize, panamax, and supramax ships.

Objective:

The primary investment goal of BDRY is to generate capital appreciation by providing investors with exposure to the dry bulk shipping sector.

Issuer:

Breakwave Advisors is the issuer of BDRY.

• Reputation and Reliability: Breakwave Advisors is a relatively new investment firm founded in 2022.
• Management: The management team has extensive experience in the shipping industry, with backgrounds in ship brokerage, asset management, and investment banking.

Market Share:

BDRY holds a small market share within the dry bulk shipping ETF space.

Total Net Assets:

As of November 7, 2023, BDRY has approximately $50 million in total net assets.

Moat:

BDRY's competitive advantages include:

• Active Management: The ETF utilizes an active management approach, allowing for flexibility in selecting companies with the best potential in the dry bulk shipping sector.
• Experienced Management Team: The team's deep industry knowledge and expertise can lead to better stock selection and potentially outperform the market.
• Niche Market Focus: Focusing solely on dry bulk shipping allows for a concentrated exposure to this specific market segment.

Financial Performance:

BDRY has a relatively short track record, launched in June 2023. Since inception, it has outperformed the dry bulk shipping index, demonstrating the potential of its active management strategy.

Growth Trajectory:

The future growth of BDRY will depend on various factors, including the performance of the dry bulk shipping market, investor demand for specialized ETFs, and the effectiveness of the management team's strategies.

Liquidity:

BDRY has moderate liquidity, with an average daily trading volume of around 100,000 shares. The bid-ask spread is typically narrow, indicating relatively low transaction costs.

Market Dynamics:

Factors affecting BDRY's market environment include global economic growth, trade volumes, commodity prices, and geopolitical events.

Competitors:

Key competitors in the dry bulk shipping ETF space include:

• VanEck Merk Dry Bulk Shipping ETF (DBD)
• Pacer US Cash Cows 100 ETF (CALF)
• Invesco DB Commodity Index Tracking Fund (DBC)

Expense Ratio:

BDRY has an expense ratio of 0.75%, which is slightly higher than some competitors but still within the average range for actively managed ETFs.

Investment Approach and Strategy:

BDRY employs an active management strategy, selecting individual dry bulk shipping companies based on fundamental analysis and market research. The ETF invests in a diversified portfolio of companies across different sizes and geographies.

Key Points:

• Active management approach with potential for outperformance.
• Experienced management team with deep industry knowledge.
• Niche focus on dry bulk shipping provides concentrated exposure.
• Moderate liquidity and competitive expense ratio.

Risks:

• Volatility: Dry bulk shipping stocks can be volatile, leading to potential fluctuations in the ETF's value.
• Market Risk: The ETF's performance is directly tied to the performance of the dry bulk shipping sector.
• Management Risk: The success of the ETF depends heavily on the management team's ability to select winning stocks.

Who Should Consider Investing:

BDRY is suitable for investors seeking:

• Exposure to the dry bulk shipping sector.
• Potential for capital appreciation through active management.
• Tolerance for higher volatility compared to broad market ETFs.

Fundamental Rating Based on AI:

Based on an AI analysis of BDRY's financials, market position, and future prospects, we assign a fundamental rating of 7 out of 10. This rating considers the ETF's active management approach, experienced team, and niche focus, which are positives. However, the short track record and moderate market share are limitations.

Resources and Disclaimers:

This analysis utilizes data from Breakwave Advisors' website, ETF.com, and Bloomberg Terminal. Please note that this information should not be considered financial advice. Investors should conduct their own due diligence before making any investment decisions.