Reshoring is accelerating—These stocks should benefit as companies return to the U.S.

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A decade-long trend of companies returning to the U.S. is accelerating, and these stocks may benefit.

Reshoring declarations are amping up, as more companies look to return operations to the United States from overseas. Corporate reshoring announcements jumped 17% in the fourth quarter compared with the prior quarter and are now tracking nearly 300% higher than the fourth quarter of 2021, according to UBS. Supply chain security and government incentives are among the reasons for the shift.

"This is one of the defining themes over the next decade. I don't think this is a 12-month theme, this has much longer room to run." To capitalize on the trend, his firm recently launched its second actively managed exchange-traded fund, Engine No. 1 Transform Supply Chain ETF . The fund covers three broad categories: manufacturing, automation and transportation. Top holdings include Martin Marietta Materials and Willscot Mobile Mini Holdings .

 

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