Agriculture ETFs: Sowing the Seeds of Investments

Agricultural Field Against Sky During Sunny Day
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Out of all the different types of commodity ETFs, there’s no doubt that energy (mainly oil) and precious metals (mainly gold) get all of the attention. But there are plenty of other commodity ETF opportunities in the investing world as well. One being agriculture ETFs.

To set you on your way and help you seed your portfolio, here is a list of broad agriculture ETFs and commodity-specific funds related to the agriculture industry.

Key Takeaways

  • Agriculture ETFs can serve many purposes, including portfolio diversification, hedging country-specific risk, and speculative trading.
  • Some agriculture ETFs cover the industry broadly, while others have more specific focuses, such as coffee beans, sugar, or corn.
  • Commodities can be traded with futures, but ETFs are more accessible, easier to trade, and they may offer tax benefits over alternative investment products.

What Are Agriculture ETFs?

Agriculture ETFs can be used to diversify or stabilize a portfolio, hedge risk to certain countries dependent on an agriculture commodity, or even create a new investing opportunity. They are also a little easier on the wallet when it comes to commissions and fees. Instead of building a manual portfolio, which can result in hefty stockbroker fees, you can access a sector like agriculture with one easy transaction. And not only can ETF trading reduce costs, but they have a tax benefit as well, which can lead to less money for Uncle Sam and more money for your investments.

And there are two types of agriculture ETFs as well. You can invest in a broad agriculture fund or go for a specific commodity ETF that targets sugar, coffee, grains, etc. The choice is yours.

General Agriculture ETFs

  • DBA - Invesco DB Agriculture ETF
  • MOO - VanEck Vectors Agribusiness ETF
  • VEGI - iShares MSCI Global Agricultural Producers Fund
  • TAGS - Teucrium Agriculture ETF
  • BAL - iPath Series B Bloomberg Cotton SubIndex Total Return ETN

Coffee ETFs

  • JO - iPath Series B Bloomberg Coffee Subindex Total Return ETN

Cocoa ETFs

  • NIB - iPath Bloomberg Cocoa Subindex Total Return ETN

Grain and Wheat ETFs

  • GRU - ELEMENTS MLCX Grains Index Total Return ETN
  • JJG - iPath Series B Bloomberg Grains Subindex Total Return ETN
  • WEAT - Teucrium Wheat Fund

Corn ETFs

  • CORN - Teucrium Corn Fund

Sugar ETFs

  • SGG - iPath Series B Bloomberg Sugar Subindex Total Return ETN
  • CANE - Teucrium Sugar Fund

Soybean ETFs

  • SOYB - Teucrium Soybean Fund

Livestock ETFs

  • COW - iPath Series B Bloomberg Livestock Subindex Total Return ETN

Wood and Timber ETFs

  • CUT - Invesco MSCI Global Timber ETF
  • WOOD - iShares S&P Global Timber & Forestry Index ETF

Food ETFs

  • PBJ - Invesco Dynamic Food & Beverage ETF

As with any investment, mutual funds, company stock, an ETF, Index, or otherwise, make sure you thoroughly research this exchange traded fund or any financial asset before making any trades (long or short). Conduct your due diligence, watch how these funds react to different market conditions, take a look under the hood and see what is actually in the funds. And if you have any questions or concerns, consult a stockbroker, financial advisor, or another financial industry professional.

The Balance does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.

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