ETFs
‘First Steps’ of a US Manufacturing Boom: Tema ETF CEO
An exchange-traded fund is betting on a recovery in U.S. manufacturing jobs.
Maurits Pot, CEO and Founder of Tema ETF, is behind American Relocation ETF (RSHO) which focuses on industrialists.
“Some will call this deglobalization. We are in the early stages of it,” Pot told the showAdvantage of ETFs” this week. “At the heart of it all is job creation, manufacturing and reshoring, that is, bringing back local manufacturing jobs.”
Pot’s firm launched the American Reshoring ETF in May 2023. Since its inception, the exchange-traded fund is up nearly 37% as of Wednesday’s close.
Despite the strong results, “ETF Edge” host Bob Pisani argues that theme-based ETFs often come and go.
However, Todd Sohn of Strategas, who follows the ETF industry, thinks investing in U.S. manufacturing is a smart strategy. He points out industrial sector a growth path after a vast reduction in size over the last three decades.
“If I’m going to play industrials thematically, I prefer the active route,” the firm’s CEO said. “I think there’s some staying power in this sector, unlike some of the fads we’ve seen in the thematic space, particularly the ones that are a little bit more tech- and growth-focused.”
The American Reshoring ETF has underperformed the broader market over the past three months, falling more than 4%.