An exchange-traded fund is betting on a revival of manufacturing jobs in the US.
Maurits Pot, CEO and founder of Tema ETFs, is behind the American Reshoring ETF (RSHO), which focuses on industrials.
“Some will call it deglobalization. We’re still in the early stages,” Pot told CNBC’s “ETF Edge” this week. “The focus is on job creation, production and reshoring – restoring local manufacturing jobs.”
Pot’s company launched the American Reshoring ETF in May 2023. Since its inception, the exchange-traded fund was up nearly 37% through Wednesday’s close.
Despite the strong performance, “ETF Edge” host Bob Pisani says ETFs built around a theme often come and go.
However, Strategas’ Todd Sohn, who tracks the ETF industry, believes investing in U.S. manufacturing is a sensible strategy. He points to the Industrial sectors runway for growth after a huge downsizing over the last three decades.
“If I want to address industrial stocks thematically, I like the approach of becoming active,” said the company’s managing director. “I think there’s staying power here, unlike some of the fads we’ve seen in the thematic space – particularly those that are a little more focused on technology and growth.”
The American Reshoring ETF underperformed the broader market over the past three months, falling more than 4%.
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2024-07-03 18:44:58
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