The American Reshoring ETF (RSHO) is not just another exchange-traded fund; it is a bet on the potential resurgence of U.S. manufacturing jobs. With a focus on industrials, the CEO and founder of Tema ETFs, Maurits Pot, believes that the trend of reshoring and job creation is just beginning. The ETF was launched in May 2023 and has shown impressive growth, up almost 37% since its inception.
While some may argue that thematic ETFs are fleeting, Todd Sohn, from Strategas, sees investing in U.S. manufacturing as a solid long-term strategy. He highlights the industrial sector’s potential for growth after experiencing significant downsizing over the past three decades. Sohn believes that taking an active approach to investing in industrials can provide more stability compared to trendy thematic investments, especially those focused on technology and growth.
Despite its strong performance, the American Reshoring ETF has faced challenges in the past three months, underperforming the broader market by falling more than 4%. This downturn presents an opportunity for investors to consider the long-term prospects of the ETF, especially given the potential for a resurgence in U.S. manufacturing jobs.
The American Reshoring ETF represents a unique opportunity for investors looking to capitalize on the potential growth of U.S. manufacturing jobs. While facing short-term challenges, the long-term outlook for the ETF remains promising. With the industrial sector poised for resurgence and a focus on job creation and reshoring, the American Reshoring ETF offers a differentiated approach to thematic investing.