🚢 Shipping ETFs vs. Ship Investments: Smarter Maritime Investing in 2025?

My name is Davide Ramponi, I’m 21 years old and currently training as a shipping agent in Hamburg. On my blog, I take you with me on my journey into the exciting world of shipping. I share my knowledge, my experiences, and my progress on the way to becoming an expert in the field of Sale and Purchase – the trade with ships.

Traditionally, when people talked about investing in shipping, they meant one thing: buying ships. Whether through full ownership, partnerships, or pooled investments, ship acquisition has long been seen as the “real” way to gain exposure to maritime trade. But times are changing — and so are the ways we can invest in the global ocean economy.

Over the past decade, a new category of maritime investment has emerged: shipping ETFs (exchange-traded funds) and maritime-focused investment funds. These financial instruments allow investors to gain exposure to shipping markets without owning or operating physical vessels.

But are they worth it? How do their risk, performance, and liquidity stack up against direct ship investments? And which funds are actually leading the market?

🔍 In this post, I’ll walk you through:

✅ What shipping ETFs and maritime investment funds are — and how they work

📈 How their performance compares with direct investments in vessels

⚠️ The risk profile and market exposure they offer to investors

💧 How these products improve liquidity and portfolio diversification

🌍 The leading ETFs and maritime funds available today

Let’s weigh anchor and dive into the financial currents shaping maritime investment in 2025. ⚓

🚀 What Are Shipping ETFs and Maritime Investment Funds?

Shipping ETFs (Exchange-Traded Funds) are investment funds that track an index of listed companies involved in shipping. This could include container liners, dry bulk carriers, tanker operators, shipyards, or maritime logistics providers. Investors buy shares of the ETF, which are traded on stock exchanges like any public company stock.

Examples include:

📌 Breakwave Dry Bulk Shipping ETF (BDRY)

📌 US Global Sea to Sky Cargo ETF (SEA)

📌 Invesco Shipping ETF (pending launch)

Maritime investment funds, on the other hand, may be actively managed funds that invest in a basket of maritime companies or assets. These might not always be publicly traded, and some can include private equity elements, investing in logistics tech or even newbuild projects indirectly.

These funds offer a financial bridge 🌉 between capital markets and the shipping industry — without the complexities of actual ship ownership.

📊 Shipping ETFs vs. Direct Ship Investments: A Performance Perspective

So, which strategy performs better — owning shares in shipping companies or owning the ships themselves?

The answer, as always: it depends. 🤷‍♂️

1. 💹 Shipping ETFs: Correlated With Market Sentiment

ETF performance reflects public company valuations. In recent years:

• 📈 BDRY surged over 300% during the 2021 dry bulk rally, then corrected sharply in 2022.

• 📦 SEA, more diversified, offered steadier long-term growth with less volatility.

These ETFs are highly responsive to:🛢 Freight indices📉 Oil prices🌍 Geopolitical risks📈 Stock market sentiment

2. 🛳 Direct Ship Investments: Asset-Heavy, Illiquid but Powerful

Shipowners investing directly in vessels may enjoy:

💰 Charter income

🏗 Residual resale value

🧭 Full operational control

However, performance depends on:

⚙️ Market timing

🛠 Operational efficiency

📜 Regulatory and technical compliance

💡 Takeaway:

ETFs = Fast access & liquidityShip investments = Hands-on control & long-term potential

⚖️ Risk Profiles and Market Access: Two Very Different Oceans

📌 Factor	📈 Shipping ETFs	🚢 Direct Ship Investment
💧 Liquidity	High	Low
🔑 Entry barrier	Low	High
🎯 Diversification	High	Low
⚠ Operational risk	None	High
🧾 Regulatory exposure	Indirect	Direct
🔄 Return potential	Moderate	High but volatile
💼 Taxation	Simple	Complex

If you're a private investor or fund manager, ETFs offer clean market access.If you’re a broker or shipowner, tonnage may offer better alignment with your goals.

💧 Liquidity and Diversification: The ETF Advantage

One of the strongest arguments in favor of ETFs is liquidity. Direct ship ownership can lock up capital for years.

💡 ETF Benefits:

• ✅ Trade instantly during market hours

• ✅ No due diligence or surveys

• ✅ Great for short- to mid-term capital strategies

Imagine this scenario:

⚠️ A war breaks out, oil prices spike.

💸 You want exposure to tankers.

🚀 You buy a tanker-heavy ETF within minutes — no ship purchase needed.

And for large funds:📊 ETF diversification reduces risk exposure across shipping sectors — from dry bulk to ports.

🏆 Who’s Leading the Pack? Top Shipping ETFs in 2025

1. ⚓ Breakwave Dry Bulk Shipping ETF (BDRY)

• Pure play on dry bulk freight rates

• 🔁 Tracks Capesize, Panamax, Supramax

• ⚠️ High risk, high reward

2. 🚢 US Global Sea to Sky Cargo ETF (SEA)

• Container carriers, ports, logistics

• 🌐 Broad global exposure

• 📉 Lower volatility, suitable for long-term portfolios

3. 🚛 VanEck Future of Transport ETF (TRAN)

• Mixed transport (includes maritime)

• 🔍 Focus on innovation and sustainability

• 🟢 Great ESG potential

4. 🔧 HANetf Global Maritime Tech ETF (coming soon)

• Green retrofits, maritime AI, digital tools

• 🌱 ESG and digital shipping focused

• 📊 Ideal for long-term thematic investors

👥 Case Study: A Tale of Two Investors

Investor A – Anna

👩 Retired professional

💰 €50,000 to invest

🎯 Buys SEA ETF for passive income

Investor B – Björn

👨‍🔧 Shipping entrepreneur

💼 €2 million capital

🚢 Buys two dry bulk vessels

Outcome:

✅ Anna enjoys liquidity & dividends

📉 Björn waits 3 years but doubles ROI

👉 Different profiles — different journeys.

🧭 Conclusion: Sailing Smart — Not Just Big

Shipping ETFs and maritime investment funds are reshaping how capital flows into our industry. They allow exposure without ownership — and that’s a game changer.

Key Takeaways 🎯

✅ ETFs are accessible, liquid, and diversified

🧠 Ideal for passive investors & institutions

🛳 Ship ownership offers control, but requires expertise and patience

🎯 Choose based on your capital, risk appetite, and maritime experience

🚀 The sea of opportunities is open — not only for shipowners but also for anyone with a smart investment strategy.

👇 What do you thing?

Do you prefer the flexibility of ETFs or the long game of owning ships?

💬 Share your thoughts in the comments — I look forward to the exchange!

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