The Breakwave Tanker Shipping ETF (BWET) has experienced an astonishing rise, posting a year-to-date gain of 3,673.35% as of September 11, 2026. This significant increase has been largely attributed to the ongoing conflict between the US and Iran, particularly the effective closure of the Strait of Hormuz. The fund, which invests in futures on dry bulk shipping rates, saw an 1,168.62% increase between February 27 and September 11, climbing from $57.30 to $726.92.
In contrast, traditional safe-haven assets like gold (represented by SPDR Gold Trust, GLD) have performed poorly during the same period, with GLD declining by 17.57%. Other major assets also lagged far behind BWET; NVIDIA was up 23.48%, Invesco QQQ Trust rose 17.72%, iShares Bitcoin Trust ETF gained 17.69%, and the SPDR S&P 500 ETF Trust increased by 11.41%. Analysts note that BWET's performance is a highly concentrated and geopolitically leveraged bet.
The surge in BWET's value is directly linked to the rerouting and increased costs of oil transportation due to the Strait of Hormuz closure, a critical chokepoint for about a quarter of the world's seaborne oil trade. When the strait closed, the scarcity of available ships and routes caused freight rates to reprice violently. The fund's year-to-date performance is noteworthy, though a substantial portion of the gains occurred before the conflict intensified, with the fund already at $57.30 by February 27 from $19.26 at the end of 2025.
Despite its impressive returns, BWET is considered a high-risk investment. Its performance is entirely dependent on the shipping chokepoint remaining closed, and it could retrace its gains just as quickly. The ETF also carries a high expense ratio of 3.50% and uses a commodity pool structure, which creates unique tax considerations, making it more suitable for tactical traders than long-term investors. Experts also point to a future glut of new vessel capacity in 18-36 months as a significant risk that could lead to a sharp downturn in the fund's performance.
