BWET surges to a 52-week high after a massive rally, fueled by shipping disruptions and soaring freight rates, and still has room to run.
Crude oil tanker freight futures rarely produce the year's biggest gain. Yet Breakwave Tanker Shipping ETF (NYSE:BWET) closed at around $172, after a 1,331% one-year run driven almost entirely by one event: the closure of the Strait of Hormuz in February 2026.
Exchange-traded fund flows surpassed $500 billion in the first three and a half months of 2026 as the industry continues its rapid expansion with more than 300 new launches and record trading volumes. Key Takeaways: ETF flows exceeded $500 billion in the first three and a half months of 2026.
The Strait of Hormuz carries more than a quarter of all seaborne oil trade on a normal day.
John Kartsonas, founder and managing partner at Breakwave Advisors, joins Katie Greifeld and Eric Balchunas on "Bloomberg ETF IQ." Every twist in the Iran conflict shows up almost instantly in the Breakwave Tanker Shipping ETF (ticker: BWET) that has become the best-performing ETF of 2026.
With the price of crude oil futures rising to the highest level in years amid the Iran war, investors may be looking to strategically shift their allocations to take advantage of the spike. While commodities trading or individual oil stocks are appealing to more active investors, others may look for exchange-traded funds (ETFs) that provide access to the space without the need for the same level of involvement.
March winners were clear -- Shipping, Energy, Commodities & Volatility ETFs surged as war risks, supply shocks, and market swings drove big gains.
Natural gas has proven itself one of the most volatile commodities in recent memory.
While the S&P 500 has slipped roughly 4% over the past month, two natural gas ETFs have quietly put up some of the strongest returns in the market.
Breakwave Tanker Shipping ETF (NYSEARCA:BWET - Get Free Report) was the target of a significant growth in short interest in the month of February. As of February 27th, there was short interest totaling 17,938 shares, a growth of 141.6% from the February 12th total of 7,425 shares. Based on an average trading volume of 77,311
I recommend selling Breakwave Tanker Shipping ETF due to an unattractive risk-return profile after its dramatic 2026 surge. BWET's performance is tightly linked to the Middle East maritime oil freight, especially the Strait of Hormuz, making it highly sensitive to geopolitical disruptions. Oil shipping prices and BWET have already soared to levels not seen since the 2000s; further upside appears limited as conflict escalation is not in major powers' interests.
AI fears, geopolitical tensions and strong earnings shaped February markets, but select ETFs surged, led by tanker shipping, Korea and energy plays.