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Breakwave Tanker Shipping ETF (BWET-1.59%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, highlighting a decrease in net asset value per share from $16.69 to $14.85, representing an 11.05% decline. The decrease was primarily due to net realized and unrealized losses on futures contracts.
Net loss for the quarter was $335,663, resulting from net realized losses on futures contracts of $292,642, net unrealized losses of $34,478, and a net investment loss of $8,543.
During the quarter, BWET's market value per share decreased by 12.12%, from $16.79 to $14.76. The fund experienced a high of $16.82 and a low of $14.45 during this period.
The filing notes that geopolitical turmoil, specifically the Israel-Hamas conflict, has impacted global shipping routes, leading to disruptions. However, the crude tanker segment was less affected compared to other shipping sectors.
BWET's investment objective is to provide exposure to the daily change in the price of crude oil tanker freight futures. The fund seeks to achieve this by investing in a portfolio of exchange-cleared futures contracts on the cost of shipping crude oil.
The BWET Benchmark Portfolio consists of futures contracts on the TD3C and TD20 indexes, which measure rates for shipping crude oil on specific routes. The portfolio maintains long-only positions in these futures.
The fund's sponsor, Amplify Investments LLC, is responsible for its management and operations. The sponsor has agreed to waive certain fees to ensure the fund's expenses do not exceed an annual rate of 3.50% of average daily net assets.
The report also details the fund's liquidity and capital resources, noting that it does not anticipate using borrowings or other lines of credit to meet its obligations. The fund's liquidity needs are met through the sale of investments or cash equivalents.
The filing highlights the regulatory environment affecting the fund, including potential impacts from the Dodd-Frank Act and other international regulations on derivatives markets.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Breakwave Tanker Shipping ETF quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.