‘Early innings’ of a US manufacturing boom: CEO of Tema ETFs

One exchange-traded fund is betting on a revival of U.S. manufacturing employment.

Tema ETFs CEO and founder Maurits Pot is behind the American Reshoring ETF (RSHO), which focuses on industrial values.

“Some will call it deglobalization. We are in the early innings,” Pot told CNBC’s “ETF Edge” this week. “At the heart of it is job creation, manufacturing and reshoring – bringing local manufacturing jobs back.”

Pot’s company launched the American Reshoring ETF in May 2023. Since inception, the exchange-traded fund is up nearly 37% as of Wednesday’s close.

Despite the strong performance, “ETF Edge” host Bob Pisani claims that ETFs built around a theme tend to come and go.

However, Todd Sohn of Strategas, who follows the ETF industry, thinks investing in U.S. manufacturing is a good strategy. He points to the industrial sector runway for growth after a massive downsizing over the past thirty years.

“If I am going to play the industrial sector in a thematic way, I like the route to become active,” said the company director. “I really think there’s staying power here, unlike some of the fads we’ve seen thematically, especially the fads that are a little more focused on technology and growth.”

The American Reshoring ETF has underperformed the broader market over the past three months, dropping more than 4%.

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