According to a news release, the new offering is the first shipping ETF that provides investors with a means of accessing the rapidly growing global shipping sector.
The ETF will seek to replicate the Delta Global Shipping Index, which was developed and is maintained by Delta Global Indices, LLC, a wholly owned subsidiary of Delta Global Advisors, Inc.
The Delta Global Shipping Index includes companies that derive at least 80% of their revenues from the seaborne transport of goods or the operating and/or leasing of ships. Additionally, constituents must have market capitalizations of at least $250 million and a 30-day average daily trading volume of at least $2 million.
The fund (ticker: SEA) issues and redeems Shares at NAV only in large blocks of 80,000 shares (each block of shares is called a ‘creation unit”) or multiples thereof. Only broker/dealers or large institutional investors with creation and redemption agreements and called authorized participants (APs) can purchase or redeem these creation units, the release said.