Dry Bulk Shipping ETF, Ticker: BDRY – Launches as the First Freight Futures ETF

SUMMIT, N.J.–(BUSINESS WIRE)–Breakwave Advisors, in partnership with ETF Managers Group (ETFMG),
launches the Breakwave Dry Bulk Shipping ETF (NYSE Arca: BDRY).
The Fund is the first and only freight futures exchange-traded product
focusing exclusively on dry bulk shipping. BDRY provides investors
direct access to an instrumental part of the global commodity market,
that historically has been uncorrelated -with other major asset classes.
All ETF product information is available at the URL www.drybulketf.com.

BDRY provides long exposure to the dry bulk shipping market through a
portfolio of near-dated freight futures contracts on dry bulk indices.
This offers investors exposure to dry bulk freight without the need for
a futures trading account. BDRY is designed to reduce the effects of
rolling contracts by using a laddered strategy to buy contracts while
letting existing positions expire and settle in cash.

“We are thrilled to bring such an innovative product to the market,
allowing investors to participate directly in the exciting world of dry
bulk shipping,” said John Kartsonas, Founder and Managing Partner of
Breakwave Advisors LLC, a Commodity Trading Advisor based in New York
City specializing in Shipping and Freight investments. “Freight futures
have historically exhibited strong cyclical returns, but for most
investors it has been a very hard-to-access market. For the first time,
through BDRY, a wide range of market participants can now directly
access the dry bulk market using a simple, transparent, equity-like
investment product.”

“Dry bulk shipping is an essential part of the global commodity markets
and a major beneficiary of infrastructure spending,” Mr. Kartsonas
added. “A highly cyclical industry, dry bulk shipping is in an upturn
again following several years of underperformance, in a strengthening
commodity environment supported by improved industry fundamentals.“

The Fund will hold freight futures with a weighted average of
approximately three months to expiration, using a mix of
one-to-six-month freight futures, based on the prevailing calendar
schedule. The Fund intends to progressively increase its position to the
next calendar quarter three-month strip while existing positions are
maintained and settle in cash. The initial freight futures allocation
will be 50% Capesize contracts, 40% Panamax contracts and 10% Supramax
contracts, rebalancing annually.

“The dry bulk shipping industry is a critical part of the global
commodity market that has been out of reach for the average investor
until today,” said Sam Masucci, Founder and CEO of ETFMG. “With the
launch of BDRY, we are proud to bring another first-of-its-kind exchange
traded product to market alongside our partner Breakwave Advisors.”

For more information on the first ETF to provide long exposure to the
dry bulk shipping market, BDRY, please visit www.drybulketf.com.

Investing in freight futures can be volatile and is not suitable for
all investors.

Carefully consider the Fund’s investment objectives, risk factors,
charges, and expenses before investing. This material must be
accompanied or preceded by a prospectus. Please read the prospectus
carefully before investing.

The Fund is not a registered investment company so shareholders do
not have the protections of the Investment Company Act of 1940.

An investment in the Fund involves significant risks. You could lose all
or part of your investment in the Fund, and the Fund’s performance could
trail that of other investments.

The value of the Shares of the Fund relates directly to the value of,
and realized profit or loss from, the Freight Futures and other assets
held by the Fund, and fluctuations in price could materially affect the
Fund’s shares. Investments in freight futures typically fluctuate in
value with changes in spot charter rates. Charter rates for dry bulk
vessels are volatile and have declined significantly since their
historic highs and may remain at low levels or decrease further in the
future.

The Fund will not take defensive positions to protect against declining
freight rates, which could cause a decline to the value of the Fund’s
shares.

Although the Fund’s shares are listed and traded on the NYSE Arca, there
can be no guarantee that an active trading market for the shares will be
maintained. If an investor needs to sell shares at a time when no active
trading market for them exists, the price the investor receives upon
sale of the shares, assuming they were able to be sold, likely would be
lower than if an active market existed.

The Fund is distributed by ETFMG Financial LLC, which is not affiliated
with Breakwave Advisors.

Contacts

Zito Partners
Deborah Kostroun, 201-403-8185
[email protected]