One composition quirk in SEA is that among its 26 holdings is Teekay Shipping ( TK) and TK's three spinoff companies: TK LNG Partners ( TGP), Teekay Offshore Partners ( TOO) and Teekay Tankers ( TNK). The four "Teekays" add up to 14% of the fund. SEA has an attractive trailing yield of 3.01% because many companies in the industry have high payouts, but there is volatility in the dividends as well as the stocks, and any future dividends paid out by SEA could fluctuate considerably. Companies in the shipping industry should benefit from increased economic activity, which results in increased exportation of finished goods and also transportation of energy products like oil and liquid natural gas. Global economic activity has been sluggish due to ongoing problems in Europe and Japan and the weak recovery in the U.S. so it is not surprising that SEA hasn't moved much in recent months. The fund should be a good proxy for capturing a global economic recovery whenever it comes. At the time of publication, Nusbaum had no positions in securities mentioned.Follow @randomrogerThis article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
In trading on Monday, shares of the Guggenheim Shipping ETF entered into oversold territory, changing hands as low as $17.9001 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100.
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Guggenheim Shipping ETF where we have detected an approximate $43.4 million dollar outflow -- that's a 37.7% decrease week over week (from 6,100,000 to 3,800,000). Among the largest underlying components of SEA, in trading today Matson Inc is off about 0.4%, Teekay Corp is up about 0.4%, and Teekay LNG Partners LP is lower by about 0.1%.