Betting on the Farm with ETFs

Source: NASDAQ, Paul Baiocchi (6/6/11)

"For investors, the time is now and potash ETF choices have never been greater."

NASDAQ, Paul Baiocchi

The bad news for consumers is that grain prices sit near all-time highs; China faces its worst drought in 50 years; and yield estimates in Europe have dropped nearly 10% due to bad weather. If the recent E. coli outbreak in Europe causes any supply disruptions or crop recalls, the pressure on food supplies will only grow.

For investors looking to hedge their own food prices, the time is now and the choices in the ETF space have never been greater. Indeed, three funds came to market in the past month, and two of them clearly add granularity to the agricultural commodities ETF market.

Apart from the new arrivals-all from Global X-the agriculture ETF sector has three equity funds with established track records—the PowerShares Global Agriculture Portfolio ETF (PAGG), Jefferies TR/J CRB Global Agriculture Equity ETF (CRBA) and the Market Vectors Agribusiness ETF (MOO).

The biggest and most well-known fund in the global agriculture segment is MOO. The fund offers investors the most liquidity in the segment and has accumulated the largest asset base—almost $5.5 billion. Clearly, the first-mover advantage has given it a leg up on competition, as it has become the cheapest fund in its class to trade. Further, MOO offers investors the most diversified portfolio, at a cost of 0.56%, the cheapest of all its competitors.

All three funds have a similar geographic and market-cap tilt, with the exception of MOO, which is the only one without exposure to Africa. MOO is the most diversified fund as it relates to sectors, with only 44% of its assets concentrated in the chemical sector vs. 60% for both CRBA and PAGG. MOO and PAGG actually provide the most direct exposure to agriculture through companies, with 25% of assets in the sector vs. 19.5% for CRBA.

Life Sciences Co. Receives Large Livestock Feed Order from New Client in Mexico
Source: Streetwise Reports (01/27/2021)

Avivagen Inc. reported it has secured a six tonne order for OxC-beta™ Livestock from a new customer in Queretaro City, Mexico.

Intrepid Shares Grow 40% on Positive Upward Trend for 2021 Trio and Potash Prices
Source: Streetwise Reports (12/31/2020)

Shares of Intrepid Potash Inc. sprouted to a new 52-week high after the company reported that it anticipates greater demand and higher prices for its Trio® and potash products in 2021.

Life Sciences Firm Reports Year of Record Breaking Orders
Source: Streetwise Reports (12/18/2020)

Avivagen Inc. reported FY/20 audited financial results that included a 20.5% increase in YoY revenue.

Surging Agricultural Prices, $17 Trillion and Phosphate
Source: Brian Ostroff for Streetwise Reports (11/23/2020)

Brian Ostroff, managing director at Windermere Capital and CEO of Arianne Phosphate, discusses the recent rise in agricultural commodity prices and their spillover into fertilizers.

Note to Fed: Be Careful What You Wish For
Source: Michael Ballanger for Streetwise Reports (11/23/2020)

Sector expert Michael Ballanger examines the charts for commodities like soybeans and the components used in handheld electronic devices, and reflects on what they say about the future prospects of those who hold mortgages and invest in precious metals.

Large Scale Automation Comes to Cannabis
Source: Keith Schaefer for Streetwise Reports (11/02/2020)

Keith Schaefer, the Investing Whisperer, offers his analysis of the investment proposition offered by Icanic Brands, and how its ability to generate up to 1,000 pre-rolls per hour could dramatically affect the company's bottom line.

Life Sciences Firm Lands Record 4 Metric Tons Order for Antibiotic-Free Feedstock
Source: Streetwise Reports (10/14/2020)

Avivagen Inc. reported that it has received a record purchase order for its OxC-beta™ product from UNAHCO.

Life Sciences Company Posts Record Q3 Revenue Due to Successful Recurring Purchase Model
Source: Streetwise Reports (09/09/2020)

Avivagen Inc. reported unaudited financial results for Q3/20 that included record revenue and product sales volumes that nearly eclipsed FY/19 levels.

Life Sciences Company Registers First Non-Antibiotic Livestock Feed Additive Sale in Brazil
Source: Streetwise Reports (08/12/2020)

Avivagen Inc. reported it achieved its first sale of OxC-beta™ Livestock in Brazil, the world's third largest livestock feed market.

August Approaches: Accumulation, Conversation and the Promise of Silver
Source: Michael Ballanger for Streetwise Reports (07/20/2020)

In this week's advisory, sector expert Michael Ballanger reviews the most recent market news, celebrates old-school communication techniques and offers strategies for investing in the dog days of summer.