ETF to Buy #2 – Guggenheim Shipping ETF (SEA)
The Guggenheim Shipping ETF (NYSE:SEA) is designed to benefit from the high-dividend-paying companies in the shipping industry. It has a distribution yield of 5.48%.
The recession forced bulk ships like those owned by Teekay Shipping (NYSE:TK) and others to tighten operations. Thus, many are cash heavy and looking for undervalued ships to take advantage of an expected hike in tanker rates in 2013.
Fundamental analysts like Credit Suisse have a target of $32 for this ETF. The fund broke from a triple-top and a saucer formation in late January, and began trading within a bull channel. Buy under $18 for a three-month target of $25.