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The recent surge in American reshoring, the process of bringing back manufacturing and production activities to the United States from overseas, has gained significant momentum. This trend has been driven by various factors, including the secular shift in global economic dynamics, the industrial renaissance, bipartisan support, competitive advantage, and pure exposure, per the issuer.
As a result, Temaetfs recently launched a new article on this concept, namely, American Reshoring ETF (RSHO - Free Report) . Let’s elaborate.
Inside RSHO
The fund hit the market on May 11, 2023. The actively managed Tema American Reshoring ETF looks to provide long-term growth by investing in companies that stand to benefit from manufacturing moving back to US shores.
Linde plc (5.05%), Vulcan Matls Co (5.01%) and Applied Indl Technologies Inc Com (4.97%) hold the top three spots in the fund. Country-wise, the fund is heavy on United States, followed by Ireland and Britain. Sector-wise, the fund is heavy on Industrials and Materials. The net expense ratio of the fund is 0.75%.
How Does It Fit In a Portfolio?
The segment explores the factors and highlights the investment opportunities arising from the American reshoring movement.
Secular Trend: Rising labor costs and demand for local production drive reshoring, benefiting companies through improved response times, quality control, and reduced transportation costs.
Industrial Renaissance: Technological advancements and innovation fuel an industrial renaissance, creating investment opportunities in advanced manufacturing, robotics, AI, and automation.
Bipartisan Support: Political backing for reshoring efforts provides a stable investment environment, with tax incentives, streamlined regulations, and infrastructure investment enhancing its appeal.
Competitive Advantage: Reshoring grants companies increased control over supply chains, better product quality, and protection of intellectual property, minimizing risks associated with global trade disputes and tariff uncertainties.
Pure Exposure: Opportunities for investors lie in manufacturing-related sectors, including machinery, raw materials, logistics, and technology providers. Investing in funds focused on American manufacturing or reshoring themes offers diversified exposure.
Any Competition?
First Trust RBA American Industrial Renaissance ETF (AIRR - Free Report) is an ETF that can pose threat to the fund. The fund has a Zacks ETF Rank #2 (Buy). The fund has an asset base of $296.4 million. The fund charges 70 bps in fees.
Invesco S&P SmallCap Industrials Portfolio (PSCI - Free Report) can also act as a great bet. As the name suggests, the fund gives exposure to small-cap stocks belonging to the U.S. industrial sector. Small-cap stocks are generally more domestically-focused. The Zacks Rank #2 (Buy) ETF holds 93 stocks in focus. The fund charges 29 bps in fees. No stock accounts for more than 3.43% of the fund.
Emles Made in America ETF (AMER) is yet another peer. The fund charges 49 bps. It seeks investment results to the price and yield performance of the Emles American Manufacturing Index, an index designed to provide exposure to U.S. equities, predominantly companies headquartered and focused on the production of goods within the United States.
Bottom Line
The American reshoring movement represents a compelling investment. As companies increasingly recognize the benefits of reshoring, they are reshaping the manufacturing landscape and creating new avenues for growth. Investors who position themselves to take advantage of this transformative trend stand to benefit from the potential long-term value creation and contribute to the resurgence of American manufacturing prowess.
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Play New ETF RSHO to Bet on American Reshoring
The recent surge in American reshoring, the process of bringing back manufacturing and production activities to the United States from overseas, has gained significant momentum. This trend has been driven by various factors, including the secular shift in global economic dynamics, the industrial renaissance, bipartisan support, competitive advantage, and pure exposure, per the issuer.
As a result, Temaetfs recently launched a new article on this concept, namely, American Reshoring ETF (RSHO - Free Report) . Let’s elaborate.
Inside RSHO
The fund hit the market on May 11, 2023. The actively managed Tema American Reshoring ETF looks to provide long-term growth by investing in companies that stand to benefit from manufacturing moving back to US shores.
Linde plc (5.05%), Vulcan Matls Co (5.01%) and Applied Indl Technologies Inc Com (4.97%) hold the top three spots in the fund. Country-wise, the fund is heavy on United States, followed by Ireland and Britain. Sector-wise, the fund is heavy on Industrials and Materials. The net expense ratio of the fund is 0.75%.
How Does It Fit In a Portfolio?
The segment explores the factors and highlights the investment opportunities arising from the American reshoring movement.
Secular Trend: Rising labor costs and demand for local production drive reshoring, benefiting companies through improved response times, quality control, and reduced transportation costs.
Industrial Renaissance: Technological advancements and innovation fuel an industrial renaissance, creating investment opportunities in advanced manufacturing, robotics, AI, and automation.
Bipartisan Support: Political backing for reshoring efforts provides a stable investment environment, with tax incentives, streamlined regulations, and infrastructure investment enhancing its appeal.
Competitive Advantage: Reshoring grants companies increased control over supply chains, better product quality, and protection of intellectual property, minimizing risks associated with global trade disputes and tariff uncertainties.
Pure Exposure: Opportunities for investors lie in manufacturing-related sectors, including machinery, raw materials, logistics, and technology providers. Investing in funds focused on American manufacturing or reshoring themes offers diversified exposure.
Any Competition?
First Trust RBA American Industrial Renaissance ETF (AIRR - Free Report) is an ETF that can pose threat to the fund. The fund has a Zacks ETF Rank #2 (Buy). The fund has an asset base of $296.4 million. The fund charges 70 bps in fees.
Invesco S&P SmallCap Industrials Portfolio (PSCI - Free Report) can also act as a great bet. As the name suggests, the fund gives exposure to small-cap stocks belonging to the U.S. industrial sector. Small-cap stocks are generally more domestically-focused. The Zacks Rank #2 (Buy) ETF holds 93 stocks in focus. The fund charges 29 bps in fees. No stock accounts for more than 3.43% of the fund.
Emles Made in America ETF (AMER) is yet another peer. The fund charges 49 bps. It seeks investment results to the price and yield performance of the Emles American Manufacturing Index, an index designed to provide exposure to U.S. equities, predominantly companies headquartered and focused on the production of goods within the United States.
Bottom Line
The American reshoring movement represents a compelling investment. As companies increasingly recognize the benefits of reshoring, they are reshaping the manufacturing landscape and creating new avenues for growth. Investors who position themselves to take advantage of this transformative trend stand to benefit from the potential long-term value creation and contribute to the resurgence of American manufacturing prowess.