Tanker-Freight ETF Leads Energy Fund Rally With 4,050% Gain
Five energy ETFs posted gains of at least 114% this year, led by a fund tied to tanker freight futures.
The Breakwave Tanker Shipping ETF (BWET) has surged 4,050% in 2026, leading a group of five energy ETFs highlighted by Oilprice.com. The next four funds in the ranking have gained between 114% and 147.9%.
BWET tracks crude tanker freight futures rather than owning shipping stocks. Oilprice.com said tanker rates jumped after fighting began in late February, lifting the fund’s exposure to freight costs.
The United States Gasoline Fund (UGA) gained 147.9%, while the United States Brent Oil Fund (BNO) rose 121.3%. The United States Oil Fund (USO) was up 116.4%, and Invesco DB Energy Fund (DBE) gained 114%.
The funds use futures to track gasoline, Brent crude, U.S. crude or a mix of energy markets. Their returns have benefited from higher fuel and oil prices amid disruptions to Middle Eastern supplies, according to the article.
Futures can also affect returns beyond changes in commodity prices. Oilprice.com noted that backwardation, when near-term contracts cost more than later ones, can support some funds as they roll into new contracts. Contango can weigh on returns.
The funds also face risks if prices fall or shipping and supply disruptions ease. BWET, for example, has no fleet or charter revenue to cushion a sharp decline in tanker rates, the article said.
This article was produced with the help of AI technology.
Source: Yahoo Finance
