New fund looks to cash in on North American 'nearshoring' boom

Schneider National

30/11/2023 15:00

By Noe Torres
       MEXICO CITY, Nov 30 (Reuters) - A U.S. investment
management firm on Thursday launched an exchange-traded fund
(ETF) with shares of companies in North America set to benefit
from so-called "nearshoring," the trend of relocating businesses
from Asia closer to the United States.
    The new instrument, launched by Aztlan Equity Management, is
debuting on the New York Stock Exchange with a starting price of
$20 per share, said the fund's founding partner and director
Alejandro Garza.
    The fund is made up by 30 companies from North America's
three nations - Canada, the United States and Mexico - tied
together through the USMCA trade pact and seeking to take
advantage of nearshoring.
    "There's never been a fund integrating these three markets.
That, and the fact that it's the first nearshoring fund, also
makes it a watershed," said Garza.
    Disruptions in supply chains caused by the COVID-19 pandemic
have prompted companies to redesign their production processes
and bring them closer to large economies such as the United
States, favoring the industrial activity of their neighbors.
    Companies in the fund operate in the industrial real estate,
infrastructure and transportation sectors.
    U.S. logistics firm Schneider National  SNDR.N , Canadian 
cargo airline Cargojet  CJT.TO  and some Mexican industrial real
estate investment trusts, such as Fibra Macquarie, are among the
initial members of the ETF.
    Named the "Aztlan North America Nearshoring Stock
Selection," the ETF's members will be updated quarterly, Garza
added.

 (Reporting by Noe Torres; Writing by Valentine Hialire; editing
by Diane Craft)
 ((mailto:noe.torres@thomsonreuters.com;))