Best-Performing ETF of 2026 Is Up 5,000%: What Does It Track?
Key Summary
The Breakwave Tanker Shipping ETF (BWET) has seen a remarkable 5,157% gain in 2026, tracking supertanker freight rates, which have risen due to the closure of the Strait of Hormuz and increased demand for oil shipments. Despite concerns over market volatility, the fund remains a closely watched indicator of Hormuz risk and the oil market's pressure point.
Best-Performing ETF of 2026 Tracks Supertanker Freight
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Key Developments in Supertanker Freight Rates
BWET's Performance
The Breakwave Tanker Shipping ETF (BWET) has gained approximately 5,639% from its December 2025 low, with its steepest leg coming after Hormuz crude flows recovered. The fund's weekly logarithmic chart has been flagged as parabolic by market data firm Barchart, with a warning attached. ##TD3C Benchmark
TD3C, the benchmark supertanker route from the Middle East Gulf to China, has seen a record near $424,000 a day, according to IC Shipbrokers. Despite this, the supertanker orderbook equals 38% of the current fleet, up from 15% a year ago, according to Veson Nautical. ##
Market Reaction
Charterers are now booking smaller Suezmax and Aframax tankers for most November US crude loadings to Asia. However, Poten & Partners expects tanker rates to cool quickly once the crude market loosens. Freight now accounts for roughly 27% of a delivered barrel's cost, versus about 3% in January, per Poten & Partners. ##
Market Outlook
The benchmark itself faces a legal test. Commodity trader Mercuria sued TD3C publisher the Baltic Exchange in London's High Court in April. The fund assets have slipped from a September peak near $340 million to about $247 million, per etf.com.