Tema American Reshoring ETF

RSHO

Market cap $170M

NEW YORK--(BUSINESS WIRE)--Tema ETFs (“Tema”), the New York-based provider of innovative exchange traded funds (ETFs), has surpassed $1 billion in assets under management (AUM) in just two years since launch, achieved with less than $5m of initial seed AUM. Tema also announces the hiring of Devan O'Dowd as Head of Distribution and Ceri Llewelyn as Director of Marketing. Three highlights to note: Institutional Adoption: Tema estimates that over 90% of current AUM originates from Registered Inves.

It's early days into the earnings season, and FactSet data shows that results reported so far put the S&P 500 on track for its seventh consecutive quarter of growth. The S&P 500, however, is sitting at about a 10% loss year-to-date, struggling to find a lot of upside amid ongoing concerns about international trade.

On Tuesday, Tema ETFs rang in the month of April with the launch of the Tema S&P 500 Historical Weight ETF Strategy (DSPY).  For its investors, DSPY looks to offer growth over a long-term time horizon.

Tariffs on imports partly aim to boost domestic production, benefiting U.S. manufacturers by increasing demand for their products. ETFs like XLI and VIS offer exposure to the U.S. industrial sector, but Tema American Reshoring ETF focuses on companies more directly benefiting from reshoring, making it a better way to play this. Stricter border controls and labor shortages should be driving U.S. manufacturers to invest in automation and power management, benefiting companies like Rockwell Automation and Eaton, some of RSHO's top holdings.

Reshoring and nearshoring are gaining momentum, with companies consolidating supply chains in North America. The Tema American Reshoring ETF allows investors to gain meaningful exposure to this theme. The ETF is quite concentrated, offering significant exposure to increased U.S. industrial activity.

2024 was an amazing year for investment performance, with the broad market S&P 500 TR Index up over 28%. There were also some serious ETF milestones achieved this year.

The holiday shopping season in recent years kicked off with a five-day weekend that began on Thanksgiving and wrapped up on Cyber Monday. According to the National Retail Federation, roughly 197 million shoppers participated in the retail frenzy this year.

KBE, XLE, ITA, CRPT and RSHO are included in this Analyst Blog.

Let's delve into the sectors that may benefit from the Trump administration and the ETFs worth betting on.

Investors are piling into exchange traded funds focused on companies that are reviving or expanding production in the U.S. and taking advantage of government subsidies.