EXCLUSIVE: Tema American Reshoring ETF Outshines S&P 500 Without Owning Magnificent 7 Stocks — 'They Can No Longer Manufacture In China'
Portfolio Pulse from Piero Cingari
The Tema American Reshoring ETF (NYSE:RSHO) has outperformed the S&P 500 Index over the past year, achieving a 32% annual gain without holding any of the Magnificent Seven stocks. The ETF focuses on companies involved in reshoring manufacturing to the U.S. due to supply chain insecurity, trade wars, and geopolitical tensions. Key holdings include Eaton Corp (NYSE:ETN), Parker-Hannifin Corp (NYSE:PH), Summit Materials Inc. (NYSE:SUM), and Clean Harbors Inc. (NYSE:CLH).
June 03, 2024 | 5:46 pm
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NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) was outperformed by the Tema American Reshoring ETF (RSHO) by about 7 percentage points over the last year.
While SPY remains a benchmark, its underperformance relative to RSHO highlights the growing investor interest in reshoring-focused investments.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Clean Harbors Inc. (CLH), a leader in hazardous waste disposal, is benefiting from increased reshoring activity, contributing to the RSHO ETF's performance.
CLH's growth due to increased reshoring activity aligns with the RSHO ETF's focus, making it a significant contributor to the ETF's performance.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
Eaton Corp (ETN), the largest holding in the RSHO ETF, is benefiting from the reshoring trend, contributing to the ETF's strong performance.
ETN's position as the largest holding in RSHO and its involvement in reshoring activities have positively impacted its performance, aligning with the ETF's success.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 70
POSITIVE IMPACT
Parker-Hannifin Corp (PH) is a key reshoring firm in the RSHO ETF, building new automated factories in the U.S. and reducing supply chain risks.
PH's role in building new automated factories in the U.S. aligns with the reshoring trend, making it a significant contributor to RSHO's performance.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 60
POSITIVE IMPACT
The Tema American Reshoring ETF (RSHO) has outperformed the S&P 500 Index with a 32% annual gain, driven by investments in reshoring companies.
RSHO's focus on reshoring companies has led to significant outperformance compared to the S&P 500, indicating strong investor interest and potential for continued growth.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Summit Materials Inc. (SUM) is a reshoring facilitator in the RSHO ETF, providing construction materials for U.S. infrastructure upgrades.
SUM's role in providing construction materials for U.S. infrastructure upgrades positions it well within the reshoring trend, contributing to RSHO's success.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60