John Kartsonas, founder and managing partner at Breakwave Advisors, joins Katie Greifeld and Eric Balchunas on "Bloomberg ETF IQ." Every twist in the Iran conflict shows up almost instantly in the Breakwave Tanker Shipping ETF (ticker: BWET) that has become the best-performing ETF of 2026. The fund has gained over 1400% over the past year. -------- More on Bloomberg Television and Markets Like this video? Subscribe and turn on notifications so you don't miss any videos from Bloomberg Markets & Finance: http ...

Core Viewpoint - The recommendation is to sell the Breakwave Tanker Shipping ETF (NYSEARCA: BWET), which has shown significant performance linked to the ongoing war in Iran [1]. Group 1: ETF Performance - The Breakwave Tanker Shipping ETF is noted as one of the unleveraged ETFs that experienced the most substantial rise in 2026 [1]. - The performance of this ETF is entirely correlated with geopolitical events, specifically the war in Iran [1]. Group 2: Analyst Background - The analysis is backed by over 7 years of experience in equity analysis within the Latin American market, providing clients with comprehensive research and insights for informed investment decisions [1].

Core Insights - Exchange-traded funds (ETFs) continue to gain popularity, with U.S. ETFs attracting $1.48 trillion in inflows in 2025, driven by the launch of numerous new products [1] - Investors are increasingly turning to ETFs for their defensive potential amid geopolitical uncertainties and market volatility, while some funds are showing strong momentum in 2026, presenting opportunities for risk-tolerant investors [2] ETF Performance - The Breakwave Tanker Shipping ETF (BWET) has emerged as a top-performing ETF in 2026, with nearly 100% year-to-date (YTD) returns and a total gain of 223% over the last 12 months [2][6] - BWET provides exposure to the crude oil transport market through the Breakwave Tanker Futures Index, which tracks crude oil tanker freight rates via futures contracts, offering a unique investment strategy [3] Market Dynamics - Global oil shipping is crucial to the energy sector, with significant activity centered around major exporting nations like the U.S., Venezuela, and Brazil, and importing nations such as China and various European countries [5] - Shipping rates reached multi-year highs in late 2025 due to rising demand, and this demand is expected to remain elevated in the coming weeks due to cold winter temperatures [5]