Oil Tanker ETF BWET Posts 5,100 Percent One-Year Gain

The Breakwave Tanker Shipping ETF, ticker BWET, has increased by 5,100 percent over the past year. This makes it the best-performing exchange-traded fund in the United States. It outperforms all crypto, AI, and tech sector funds. The rally stems from renewed military conflict in the Middle East. Tensions in the Strait of Hormuz and Bab el-Mandeb have disrupted global oil logistics. Since January 1, the fund has gained 3,600 percent. No other US ETF comes close to this year-to-date return.

The fund takes long positions in forward freight agreements. It offers exposure to oil tanker chartering rates on specific routes. Roughly 90 percent of its exposure is tied to the Middle East-to-China supertanker route. Shipping companies have raised freight rates significantly due to physical and political threats. As these costs skyrocketed, the fund's net asset value multiplied. The ETF began 2026 with only $2 million in assets. It now holds $200 million in net assets.

Geopolitical conflict drives shipping rates

US and Israeli airstrikes killed Ali Khamenei on February 28, 2026. Iranian officials subsequently ordered oil tankers to cease passage through the Strait of Hormuz. The strait became a major chokepoint for global oil flows. Shipping companies demanded higher prices to maintain operations. By March 2, the benchmark Gulf-to-China supertanker rate hit a record $423,736 per day. This rate doubled within two days. Traffic through the strait collapsed by four-fifths in the initial weeks of the conflict.

Oil prices have more than doubled as of today. A memorandum signed in June to reopen Hormuz failed within days. BWET lost over 40 percent of its value on initial peace optimism. It regained all losses by July and continued rising. Recent attacks on Saudi Arabia's East-West oil pipeline have further increased risk. Houthis struck pipeline infrastructure in multiple locations. NASA thermal data and Reuters verified the smoke plumes. These events confirm the ongoing disruption to energy logistics.

Fund structure and recent price action

BWET does not own tankers, oil, or shipping stocks. It tracks futures prices minus fees and roll costs. The sponsor, Amplify, charges a 3.5 percent expense ratio. Founder John Kartsonas noted there is no risk mitigation in the strategy. If rates decline, the fund value declines accordingly. Shipping rates have not declined during this period. The fund has rallied 47 percent within the last five days.

BWET jumped another 10 percent on Friday morning. The share price passed $700 for the first time. According to GN markets/crypto (en-US), the fund's performance is attributed to unusually favorable market conditions. The sponsor warns that such returns may not be repeated. The next-best performing ETFs are far behind BWET. A 2x long Dell ETF gained 1,170 percent. A 2x long Micron ETF gained 530 percent. A 2x long Marvell ETF gained 390 percent. These gains derive from levering single-stock performance rather than sector-wide freight rates.