01.06.2015 - 3 ETFs for Investing in Agriculture
Changing diets across the globe are pushing up demand for soft commodities such as corn, wheat and soybeans. There are logistical problems with trading directly in the underlying commodity. The fund itself can't very well store a thousand tons of grain and trade this on a day-to-day basis. So in order to gain the underlying exposure, the fund trades in the highly liquid futures market and they roll these to maintain exposure through time. Currently the most popular is the ETF Securities Agriculture ETC (AIGA) product, with a total holding cost of 99 basis points, which still comes well under many of the item managed alternatives........................................Full Article: Source
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