Published August 20, 2012
Shares of the following agriculture-related exchange traded funds are more than 15 percent higher than 90 days ago. Although some of them have pulled back recently, many are still trading within 10 percent of their 52-week highs.
Teucrium Corn (CORN) is up more than 43 percent since mid-June on concerns about supply and the drought. The fund seeks to replicate the daily changes in percentage terms of a weighted average of the closing settlement prices for three futures contracts for corn that are traded on the CBOT. It may invest also in corn-based swap agreements, short-term obligations of the U.S. government or cash equivalents.
ELEMENTS MLCX Grains Index Total Return ETN (GRU) is more than 34 percent higher than six months ago, despite pulling back more than 3 percent from the recent 52-week high. The investment seeks to replicate the MLCX Grains Total Return Index, which is designed to reflect the performance of a fully collateralized investment in the four exchange-traded futures contracts on four physical commodities: corn, soybeans, soy meal and wheat.
iPath Pure Beta Grains ETN (WEET) has faced resistance at $56 per share for the past month, but the stock is still up about 26 percent year-to-date. The investment seeks to replicate the Barclays Capital Commodity Index Grains & Oilseeds Pure Beta Total Return. The underlying index is comprised of a basket of exchange traded futures contracts, and uses an allocation methodology designed to mitigate the effects of certain distortions in the commodity markets on such returns.
See also: S&P Still Bullish on Health Care ETFs
iPath Dow Jones-UBS Grains Total Return Sub-Index ETN (JJG) has pulled back about 4 percent from the recent 52-week high but is still up about 36 percent since the beginning of the year. The investment seeks results that correspond generally to the price and yield performance of the Dow Jones-UBS Grains Total Return Sub-Index. That index is composed of three futures contracts: corn, soybeans and wheat.
iPath Pure Beta Agriculture ETN (NYSE: DIRT), like others on this list, spiked in June and July but has pulled back recently. The stock is up more than 23 percent year-to-date. The investment seeks to replicate the returns of the Barclays Capital Commodity Index Agriculture Pure Beta Total Return index, which uses an allocation methodology designed to mitigate the effects of certain distortions in the commodity markets on such returns.
PowerShares Deutsche Bank Agriculture Long ETN (AGF) is more than 22 percent higher than three months ago, although it is trading in the same neighborhood as a year ago. The investment seeks to replicate as closely as possible the price and yield performance of the Deutsche Bank Liquid Commodity Index -- Optimum Yield Agriculture. The index is composed of roughly equal percentages of corn, wheat, soybean, and sugar futures contracts.
See also: Financial ETFs in Rally Mode
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