The American Reshoring ETF (RSHO) is taking a unique approach to investing in the U.S. manufacturing sector. Created by Maurits Pot, the CEO and founder of Tema ETFs, this fund focuses on industries that are experiencing a resurgence in manufacturing jobs. Rather than following traditional investment strategies, Pot is betting on what he calls “deglobalization” and the trend of bringing manufacturing jobs back to the United States.
Since its launch in May 2023, the American Reshoring ETF has seen significant success, with a nearly 37% increase in value. Despite this strong performance, some experts are skeptical about the long-term viability of theme-based ETFs. However, Todd Sohn of Strategas believes that investing in U.S. manufacturing is a solid strategy. He argues that the industrial sector has significant potential for growth after years of decline, making the American Reshoring ETF a compelling option for investors looking to capitalize on this trend.
Sohn suggests that actively managing investments in the industrial sector may be the best way to navigate the market effectively. He highlights the importance of staying power in thematic investing, particularly in industries like manufacturing that have a long-term growth trajectory. While the American Reshoring ETF has outperformed the broader market since its inception, it has faced challenges in recent months, falling more than 4%. This underperformance raises questions about the fund’s ability to sustain its success over the long term.
As investors continue to evaluate the potential of the American Reshoring ETF, it is clear that this fund offers a unique opportunity to capitalize on the resurgence of U.S. manufacturing jobs. While the fund has seen impressive gains since its launch, ongoing market volatility and economic uncertainty could present challenges in the future. However, with a focus on active management and a commitment to long-term growth, the American Reshoring ETF may continue to attract investors looking to benefit from the shifting landscape of the industrial sector.