This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Shipping ETF Sails Calmer Seas

Stocks in this article: SEA DRYS

Investors have been flocking to individual stocks like DryShips (DRYS) to capture the upswing of the shipping industry, but the Claymore/Delta Global Shipping Index ETF (SEA) may provide a safer opportunity.

As China's demand for steel continues to soar, investors are starting to move back into shipping. SEA is a good way to invest in this cyclical sector while minimizing the risks that come with picking individual shipping stocks.

SEA tracks the Delta Global Shipping Index, which measures the performance of companies listed on global developed markets within the maritime shipping industry. SEA's portfolio includes dry bulk goods and the leasing and/or operating of tanker ships, container ships, specialty chemical ships and ships that transport liquefied natural gas or dry bulk goods.

The Diana Armada

The fund's components are based on market capitalization and liquidity, factors that help promote liquidity in the ETF as a whole. SEA includes 30 holdings, with a 58.74% weighting in industrials and a 41.26% weighting in energy. The fund's expense ratio is a reasonable 0.65% considering that the fund is specialized.

While dry bulkers, including media favorite DryShips, have been grabbing the headlines lately, it is beneficial to SEA's investors that both dry ships and tankers are included in the underlying basket.

The demand for oil tankers tends to be relatively stable, as oil is used for many purposes across the globe. The demand for container ships fluctuates with the economy as consumers spend less money on goods like sneakers.

The demand for bulker ships fluctuates even more wildly and depends largely on demand in China and emerging markets in need of goods like steel. SEA includes a variety of shipping companies and ships in its portfolio, helping diversify investors in an inherently volatile industry.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs