As
the
United
States
presidential
election
nears,
there’s
one
key
theme
that’s
expected
to
continue
regardless
of
who
wins:
the
reshoring
of
American
manufacturing
.
Both
the
Republicans
and
Democrats
have
proposed
policies
that
favor
bolstering
manufacturing
in
the
country
–
through
subsidies
or
tariffs.
And
investors
are
paying
attention.
Tema
ETFs
runs
the
actively
managed
American
Reshoring
ETF
(ticker
RSHO),
designed
to
take
advantage
of
this
trend.
“The
American
reshoring
fund
is
built
on
the
foundation
that
the
world’s
not
getting
any
safer.
Geopolitics
are
a
problem.
Trade
wars,
actual
wars.
Supply
chains
are
stretched,
and
companies
are
making
decisions
that
incremental
capacity
is
going
to
go
into
the
United
States
closer
to
the
customer,”
Yuri
Khodjamirian,
Tema
ETF’s
chief
investment
officer,
told
CNBC’s
Pro
Talks.
One
company
at
the
forefront
of
this
trend
is
Clean
Harbors
,
a
waste
management
firm
specializing
in
hazardous
waste
disposal,
according
to
the
Khodjamirian.
The
stock
is
up
30%
this
year.
As
industrial
production
in
the
United
States
increases,
the
demand
for
Clean
Harbors’
services
is
expected
to
grow.
Earlier
this
year,
it
launched
a
new
“one-stop-shop”
service
to
tackle
PFAS
—
perfluoroalkyl
and
polyfluoroalkyl
substances,
commonly
referred
to
as
forever
chemicals
—
across
North
America.
“They
are
one
of
the
few
companies
that
has
a
solution
in
that
area,”
said
Khodjamirian,
referring
to
the
stock
as
an
“under
the
radar”
play
owing
to
its
mid-cap
size.
CLH
5Y
line
Another
key
player
in
the
reshoring
narrative
is
the
chip
maker
Taiwan
Semiconductor
,
according
to
the
CIO.
TSMC,
which
is
also
benefitting
from
the
rise
in
AI
demand,
is
up
nearly
60%
this
year.
The
company
has
increased
its
investments
in
the
United
States
to
$65
billion,
with
plans
to
set
up
three
semiconductor
fabrication
plants
in
Arizona,
thanks
to
the
United
States
CHIPS
Act.
It
is
expected
to
create
6,000
“direct
high-tech,
high-wage
jobs,”
20,000
construction
jobs,
and
tens
of
thousands
of
indirect
supplier
and
consumer
jobs,
according
to
the
company.
The
first
of
those
plants
is
expected
to
begin
manufacturing
next
year,
and
all
three
are
expected
to
be
up
and
running
by
the
end
of
the
decade.
“We
think
that
is
going
to
be
a
big
advantage
for
them,”
said
Khodjamirian,
who
is
also
the
portfolio
manager
of
Tema’s
Monopolies
and
Oligopolies
ETF
.
However,
the
fund
manager
cautioned
that
there
could
be
challenges
in
hiring
skilled
labor
due
to
the
decline
in
the
United
States
semiconductor
manufacturing
industry
over
the
years.
While
TSMC’s
stock
may
have
more
room
to
run,
Khodjamirian
advised
investors
to
be
mindful
of
the
cyclical
nature
of
the
semiconductor
industry.
He
suggested
investors
consider
their
position
size
and
timing
carefully.
“It’s
a
very
cyclical
stock,
as
I
say,
on
a
six-to-12-month
view.
I
think
these
stocks
[chip
stocks]
all
have
legs,
but
at
some
point,
they’ll
start
to
price
in
a
down
cycle,
much
earlier
than
it’ll
materialize
in
the
fundamentals,”
he
added.
TSM
5Y
line
While
TSMC
is
less
than
1%
of
the
American
Reshoring
ETF,
Clean
Harbors
is
a
top
10
holding
with
4.71%
allocated.
