As Tensions Flare in Red Sea Shipping Lanes, SonicShares™ Announces Quarterly Dividend for BOAT (12.89%), the Global Shipping ETF

Rhea-AI Summary

SonicShares™ Global Shipping ETF (NYSE Arca: BOAT) paid a quarterly dividend, marking the tenth consecutive quarterly dividend since its inception. The dividend per share is $0.7477, with a dividend yield of 12.89% and a 230-Day SEC Yield of 8.72%. The ex-date was 12/26/2023, record date was 12/27/2023, and payment date was 12/29/2023. The Fund's gross expense ratio is 0.69%. The Dividend Yield is the sum of actual ordinary cash dividend payments in the last 12 months divided by the Fund's closing NAV on January 8, 2024. The 30-Day SEC Yield represents net investment income earned by the Fund over the 30-Day period ended December 31, 2023 expressed as an annual percentage rate based on the Fund's share price at the end of the 30-Day period. The Fund provides investors with pure play exposure to a portfolio of global companies engaged in maritime shipping.

Insights

Financial Analyst

The announcement of SonicShares™ Global Shipping ETF's (BOAT) tenth consecutive quarterly dividend is a noteworthy development for investors interested in the maritime shipping sector. The dividend yield of 12.89% is particularly high, which could be seen as an indicator of the fund's cash-generating ability. However, it is crucial to consider the sustainability of such yields in the context of the fund's performance and the broader economic environment influencing shipping companies.

Maritime shipping can be cyclical, with profitability closely tied to global trade volumes and freight rates. Investors should be aware that high dividend yields can sometimes be a red flag for underlying issues, such as a company's inability to reinvest in its business or a potential reduction in future dividends if earnings decrease. Therefore, it is essential to analyze the fund's portfolio health, the stability of its income and the potential impact of global economic shifts on the shipping industry.

Additionally, the fund's expense ratio of 0.69% is a relevant consideration for investors, as it impacts the net returns. Comparing this expense ratio with industry standards and other funds with similar strategies can provide insight into its competitiveness and efficiency in managing operational costs.

Market Research Analyst

BOAT's focus on global companies engaged in maritime shipping offers investors exposure to an industry that is a backbone of international trade. The performance of such a fund is likely to be influenced by a range of macroeconomic factors, including trade policies, commodity prices and geopolitical tensions. The fluctuating nature of these factors means that the fund's performance may vary significantly over time.

Given the fund's pure play exposure, it is important to consider the diversification of its holdings across different segments of shipping, such as container ships, tankers and dry bulk carriers. Each segment reacts differently to market conditions and a well-diversified fund is more resilient against sector-specific downturns. The fund's past performance, while not indicative of future results, can offer insights into how it has navigated historical market cycles and may suggest how it could perform in future ones.

Investors should also be mindful of the potential for technological advancements and environmental regulations to impact the shipping industry. These factors could influence the profitability of the companies within BOAT's portfolio, thus affecting the fund's performance and its ability to maintain its dividend payouts.

Economist

The 30-Day SEC Yield of 8.72% for the SonicShares™ Global Shipping ETF is a critical metric for assessing the fund's income-generating potential relative to its price. This yield provides a snapshot of the investment income earned over a recent period and can be a useful comparison point against other income-oriented investments.

However, the high dividend yield and SEC yield should be examined in the context of current interest rate trends and monetary policy. Rising interest rates can affect the shipping industry by increasing financing costs and potentially slowing down global economic growth, which in turn can decrease demand for shipping services. Investors should consider how such macroeconomic conditions could impact the fund's future dividend payments and overall performance.

Furthermore, it's important to analyze the fund's dividend history for consistency and growth. A history of stable or increasing dividends can be a positive sign, but any volatility in dividend payments may require a deeper examination of the factors causing such fluctuations. The fund's ability to continue distributing dividends at the current rate will depend on the performance of its underlying assets and the overall health of the global shipping industry.

NEWARK, Del., Jan. 10, 2024 (GLOBE NEWSWIRE) -- The SonicShares™ Global Shipping ETF (NYSE Arca: BOAT) ¹ (the “Fund”) paid a quarterly dividend. This is the tenth consecutive quarterly dividend since BOAT’s inception. Please see details of the recent dividend, as well as the dividend history, in the tables below.

Current Dividend Information

Dividend per Share	Dividend Yield2	30-Day SEC Yield3	Ex-Date	Record Date	Payment Date
0.7477	12.89%	8.72%	12/26/2023	12/27/2023	12/29/2023

Dividend History

Payment Date	Dividend per Share
12/29/2023	$0.7477
9/29/2023	$0.5501
6/30/2023	$2.4471
3/31/2023	$0.3380
12/30/2022	$0.6498
9/30/2022	$1.0700
6/30/2022	$1.2734
3/31/2022	$0.7780
12/31/2021	$0.3520
9/27/2021	$0.0520

1		The Fund’s gross expense ratio is 0.69%.
2		The Dividend Yield equals the sum of actual ordinary cash dividend payments in the last 12 months divided by the Fund’s closing NAV on January 8, 2024.
3		The 30-Day SEC Yield represents net investment income earned by the Fund over the 30-Day period ended December 31, 2023 expressed as an annual percentage rate based on the Fund’s share price at the end of the 30-Day period.

The Fund provides investors with pure play exposure to a portfolio of global companies engaged in maritime shipping. For a prospectus of the Fund, click here.

The performance data quoted above represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted above. Performance current to the most recent month-end can be obtained by calling (833) 378-0717.

For more information about the Fund and standardized Fund performance, please visit: http://www.sonicshares.com/BOAT.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus of the Fund, click here. Read the prospectus or summary prospectus carefully before investing.

Investing involves risk. Loss of principal is possible.

Distributions are not guaranteed. The Current Yield and 30-Day SEC Yield is not indicative of future distributions, if any, on the ETFs. In particular, future distributions on any ETF may differ significantly from its Current Yield or 30-Day SEC Yield. You are not guaranteed a distribution under the ETFs. Distributions for the ETFs (if any) are variable and may vary significantly from month to month and may be zero. Accordingly, the Current Yield and 30-Day SEC Yield will change over time, and such change may be significant.

Fund Risks: An investment in the Fund is subject to numerous risks including the possible loss of principal. There can be no assurance that the Fund will achieve its investment objective. Equity securities, such as common stocks, are subject to market, economic and business risks that may cause their prices to fluctuate. As with all ETFs, Fund shares may be bought and sold in the secondary market at market prices. The market price normally should approximate the Fund’s net asset value per share (NAV), but the market price sometimes may be higher or lower than the NAV. The Fund is new with a limited operating history. There are a limited number of financial institutions authorized to buy and sell shares directly with the Fund, and there may be a limited number of other liquidity providers in the marketplace. There is no assurance that Fund shares will trade at any volume, or at all, on any stock exchange. Low trading activity may result in shares trading at a material discount to NAV. Please see the prospectus and summary prospectus for a complete description of principal risks.

The Fund’s investments will be concentrated in an industry or group of industries to the extent the Index is so concentrated. In such event, the value of Shares may rise and fall more than the value of shares that invest in securities of companies in a broader range of industries. Investments in securities or other instruments of foreign securities involve certain risks not involved in domestic investments and may experience more rapid and extreme changes in value than investments in securities of U.S. companies.

Companies in the transportation industry, including companies engaged in the water transportation industry, may be adversely affected by economic changes, increases in fuel, operating and insurance costs and adverse labor relations.

The Fund is distributed by Foreside Fund Services, LLC.

The “SonicShares” mark and the SonicShares logo are trademarks of Lucania Investments LLC (the “Licensor”). The Licensor and its affiliates are not affiliated with the Fund’s Adviser, any Sub-Adviser, Index Provider, Trust, administrator, custodian, transfer agent, distributor, or any of their respective affiliates. The Licensor and its affiliates have no role in the administration or operation of the Fund, nor do they make investment decisions, provide investment advice, or otherwise act in the capacity of an investment adviser to the Fund. The Fund is not sold by the Licensor or any of its affiliates. The Licensor and its affiliates make no representation, condition or warranty, express or implied, to the owners of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly.

© 2024 SonicShares™ ETFs

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2aca31c8-8cf3-4542-8ecd-602ba425c5e7

FAQ

What is the dividend per share for SonicShares™ Global Shipping ETF (NYSE Arca: BOAT)?

The dividend per share is $0.7477 for BOAT.

What is the dividend yield for SonicShares™ Global Shipping ETF (NYSE Arca: BOAT)?

The dividend yield for BOAT is 12.89%.

What is the 230-Day SEC Yield for SonicShares™ Global Shipping ETF (NYSE Arca: BOAT)?

The 230-Day SEC Yield for BOAT is 8.72%.

What are the ex-date, record date, and payment date for the recent dividend of SonicShares™ Global Shipping ETF (NYSE Arca: BOAT)?

The ex-date was 12/26/2023, record date was 12/27/2023, and payment date was 12/29/2023.

What is the gross expense ratio for SonicShares™ Global Shipping ETF (NYSE Arca: BOAT)?

The Fund's gross expense ratio is 0.69%.

What does the Dividend Yield represent for SonicShares™ Global Shipping ETF (NYSE Arca: BOAT)?

The Dividend Yield represents the sum of actual ordinary cash dividend payments in the last 12 months divided by the Fund's closing NAV on January 8, 2024 for BOAT.

What does the 30-Day SEC Yield represent for SonicShares™ Global Shipping ETF (NYSE Arca: BOAT)?

The 30-Day SEC Yield represents net investment income earned by the Fund over the 30-Day period ended December 31, 2023 expressed as an annual percentage rate based on the Fund's share price at the end of the 30-Day period for BOAT.

What does SonicShares™ Global Shipping ETF (NYSE Arca: BOAT) provide exposure to?

The Fund provides investors with pure play exposure to a portfolio of global companies engaged in maritime shipping.