As if its more than 40-percent decline over the past year does not confirm as much, The Guggenheim Shipping ETF (NYSE: SEA) has, pun fully intended, hit stormy seas. SEA's slide is not surprising. Waning emerging markets commodities demand has pressured the rates SEA's constituents can charge.
Then there is all the chatter about the tumbling Baltic Dry Index, but investors should note SEA is not as correlated to that index as some think. The ETF follows the Dow Jones Global Shipping Index, which can hold American depositary receipts (ADRs), global depositary receipts (GDRs) and master limited partnerships (MLPs), according to Guggenheim.
The reality is SEA is more tightly linked ...
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