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.
Oil, shipping and niche thematic ETFs rallied last week as Middle East tensions lifted crude prices, while silver and uranium funds gained on macro and supply trends.
As the market settles into 2026, exchange-traded funds (ETFs) remain as popular an investment as ever. U.S. ETFs gobbled up an incredible $1.48 trillion in total inflows in 2025 as hundreds of new products launched, further broadening the scope and depth of strategies available to investors through these tools.
Metals, shipping and rare earth ETFs like SLVP, BWET and SETM led 2025, and SPY has gained 14.8% YTD despite AI, tariff and rate jitters.
Be thankful for this year's resilient ETFs -- BWET, LITP, PINK and CANC -- which shined despite volatility, tariffs, AI worries and Fed shifts.