The American Reshoring ETF, managed by Maurits Pot, is placing its bet on a potential resurgence of U.S. manufacturing jobs. Pot believes that we are witnessing the early stages of what some may call “deglobalization,” with an emphasis on job creation, manufacturing, and the reshoring of local manufacturing jobs.
Launched in May 2023, the American Reshoring ETF has shown promising results, boasting a nearly 37% increase since its inception. Despite its strong performance, there are concerns about the sustainability of theme-based ETFs like this one. While Bob Pisani of “ETF Edge” suggests that such ETFs often come and go, Todd Sohn from Strategas sees potential in investing in U.S. manufacturing. Sohn highlights the industrial sector’s potential for growth after experiencing significant downsizing over the past three decades.
Sohn recommends an active investment approach when it comes to playing the industrials thematically. He believes that there is more long-term viability in actively managed funds compared to trend-driven ETFs. While some thematic ETFs tend to focus on technology and growth, the American Reshoring ETF stands out for its emphasis on U.S. manufacturing and job creation.
Despite its initial success, the American Reshoring ETF has faced challenges in the past three months, with a decline of over 4% compared to the broader market. However, this setback presents an opportunity for investors to assess the ETF’s performance and potential for growth in the future. As the industrial sector continues to evolve, it is essential to monitor how the American Reshoring ETF navigates through market fluctuations and macroeconomic trends.
The American Reshoring ETF offers a unique investment opportunity for those interested in U.S. manufacturing and job creation. While there are risks associated with theme-based ETFs, the potential for growth in the industrial sector makes this ETF a compelling option for investors seeking exposure to this market. By staying informed and actively monitoring the performance of the American Reshoring ETF, investors can make well-informed decisions about their investment strategies in the evolving landscape of U.S. manufacturing.