BDRY is the first and only freight futures ETP exclusively focused on dry bulk shipping. This segment of the global transport industry involves the movement of goods such as iron ore, coal, and grains. The effects of dry bulk shipping on the global economy are significant and can be felt in many ways. BDRY has little correlation to traditional stock and bond indices and is much more sensitive to worldwide economic growth and commodity prices.
John Kartsonas, shipping industry expert and our partner in the BDRY ETF, had this to say about how recent events have affected the dry bulk shipping industry:
“Shipping is currently experiencing a strong recovery as global economies reopen. The rush to replenish inventories but also to satisfy the spike in underlying demand is also leading to much stronger demand for transportation of goods – positively affecting global shipping. Shipping rates for dry bulk (iron ore, coal, grains, etc.) are at or close to decade highs, and although highly volatile, the trend seems to remain intact for the foreseeable future as the underlying drivers remain firm. The recent blockage of the Suez Canal, although temporary, highlights the importance of shipping to the global supply chain and the vulnerability of the logistical system that can lead to significant spikes in freight rates during such unanticipated instances. Overall, shipping is in a recovery mode and given the considerable financial stimulus, high demand for commodities around the world and strong potential economic growth, shipping should benefit the most as it is one of the most levered industries to such a macro environment.”
Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund’s prospectus, which may be obtained by calling 1-844-ETF-MGRS (1-844-383-6477), or by visiting www.etfmg.com/BDRY.
The Fund is not a mutual fund or any other type of investment company within the meaning of the Investment Company Act of 1940, as amended, and is not subject to regulation thereunder.
An investment in the Fund involves significant risks. You could lose all or part of your investment in the Fund, and the Fund’s performance could trail that of other investments. The value of the Shares of the Fund relates directly to the value of, and realized profit or loss from, the Freight Futures and other assets held by the Fund, and fluctuations in price could materially affect the Fund’s shares. Investments in freight futures typically fluctuate in value with changes in spot charter rates. Charter rates for dry bulk vessels are volatile and have declined significantly since their historic highs and may remain at low levels or decrease further in the future. The Fund will not take defensive positions to protect against declining freight rates, which could cause a decline to the value of the Fund’s shares.
Although the Fund’s shares are listed and traded on the NYSE Arca, there can be no guarantee that an active trading market for the shares will be maintained. If an investor needs to sell shares at a time when no active trading market for them exists, the price the investor receives upon sale of the shares, assuming they were able to be sold, likely would be lower than if an active market existed.
Breakwave Advisors LLC (“Breakwave”) is a registered “commodity trading advisor” with the NFA and will act as such for the Fund. Breakwave specializes in shipping and freight investments.
ETF Managers Capital LLC serves as the “commodity pool operator” to the Fund and is registered in such capacity with the NFA.
The Fund is distributed by ETFMG Financial LLC. ETF Managers Capital LLC and ETFMG Financial LLC are wholly owned subsidiaries of Exchange Traded Managers Group LLC (collectively, “ETFMG”). ETFMG is not affiliated with Breakwave Advisors LLC.
Alex Gordon is a registered representative of ETFMG Financial LLC.
Source: Kartsonas, John. March 2021.