Farmland and Agricultural ETFs have been one of the best performing hedges against the recently rampant global inflation. Their popularity and demand have increased due to the tightness in supply chains and the growing trend of deglobalization.
In this guide, we outline the 8 best Farmland and Agricultural ETFs for investors seeking exposure to different baskets of commodities.
- Invesco DB Agriculture Fund (DBA)
- Teucrium Corn Fund (CORN)
- iPath Bloomberg Livestock Subindex Total Return ETN (COW)
- Turcrium What Fund (WEAT)
- ELEMENTS Rogers International Commodity Agriculture Index ETN (RJA)
- First Trust ISE-Revere Natural Gas Fund (FCG)
- iPath Bloomberg Softs Subindex Total Return ETN (JO)
- iPath Bloomberg Grains Subindex Total Return ETN (JJG)
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1. Invesco DB Agriculture Fund (DBA)
Invesco DB Agriculture Fund (DBA) is an exchange-traded fund (ETF) that seeks to track the performance of a basket of commodities. The fund invests in a variety of agricultural commodities, including corn, soybeans, wheat, cattle, hogs, and more. DBA is one of the most popular ETFs in the space, with over $3 billion in assets under management.
The fund is highly liquid, with over 10 million shares traded daily. The fund has a 0.25% expense ratio and is benchmarked against the Dow Jones-UBS Agriculture Subindex. DBA has provided investors with strong returns in the last year and is up of 10.62% annualy.
2. Teucrium Corn Fund (CORN)
Teucrium Corn Fund (CORN) is an ETF that seeks to track the performance of corn futures. CORN is one of the most popular agricultural commodity ETFs, with over $300 million in assets under management. The fund invests in corn futures contracts and is highly leveraged, with a 1.5x weighting. CORN has a 0.60% expense ratio and is benchmarked against the Bloomberg Corn Subindex.
The fund is very liquid, with over 4 million shares traded daily. CORN has been one of the best performers this year and is up over 35.59%.
3. iPath Bloomberg Livestock Subindex Total Return ETN (COW)
iPath Bloomberg Livestock Subindex Total Return ETN (COW) is an exchange-traded note (ETN) that seeks to track the performance of a basket of livestock commodities. The ETN invests in a variety of livestock commodities, including cattle, hogs, and more. COW is one of the most popular ETNs in the space, with over $200 million in assets under management.
The ETN is highly liquid, with over 5 million shares traded daily. The ETN has a 0.75% expense ratio and is benchmarked against the Bloomberg Livestock Subindex. COW has been a relatively strong performer this year and is up over 9.08%.
4. Teucrium Wheat Fund (WEAT)
Teucrium Wheat Fund (WEAT) is an ETF that seeks to track the performance of wheat futures. WEAT is one of the most popular agricultural commodity ETFs, with over $200 million in assets under management. The fund invests in wheat futures contracts and is highly leveraged, with a 1.5x weighting. WEAT has a 0.60% expense ratio and is benchmarked against the Bloomberg Wheat Subindex.
The fund is very liquid, with over 4 million shares traded daily. WEAT has also been one of the best performing Farmland ETFs with a 1-year daily return of 23.31%.
5. ELEMENTS Rogers International Commodity Agriculture Index ETN (RJA)
ELEMENTS Rogers International Commodity Agriculture Index ETN (RJA) is an exchange-traded note (ETN) that seeks to track the performance of a basket of agricultural commodities. The ETN invests in a variety of agricultural commodities, including corn, soybeans, wheat, cattle, hogs, and more. RJA is one of the most popular ETNs in the space, with over $200 million in assets under management.
The ETN is highly liquid, with over 5 million shares traded daily. The ETN has a 0.75% expense ratio and is benchmarked against the Rogers International Commodity Agriculture Index. RJA has performed well since the supply chain constraints began with a yearly return of over 22.40%.
6. First Trust ISE-Revere Natural Gas Fund (FCG)
First Trust ISE-Revere Natural Gas Fund (FCG) is an ETF that seeks to track the performance of natural gas futures. FCG is one of the most popular energy commodity ETFs, with over $200 million in assets under management. The fund invests in natural gas futures contracts and is highly leveraged, with a 1.5x weighting. FCG has a 0.60% expense ratio and is benchmarked against the NYMEX Henry Hub Natural Gas Futures Index.
The fund is very liquid, with over 4 million shares traded daily. First Trust Natural Gas has been the best performing ETF with over 73.97% annualized returns. That said, it also has the highest volatility profile so proceed with caution.
7. iPath Bloomberg Softs Subindex Total Return ETN (JO)
iPath Bloomberg Softs Subindex Total Return ETN (JO) is an exchange-traded note (ETN) that seeks to track the performance of a basket of soft commodities. The ETN invests in a variety of soft commodities, including coffee, sugar, cocoa, and more. JO is one of the most popular ETNs in the space, with over $150 million in assets under management.
The ETN is highly liquid, with over 5 million shares traded daily. The ETN has a 0.75% expense ratio and is benchmarked against the Bloomberg Softs Subindex. JO has provided investors with strong returns this year at over 19.91%.
8. iPath Bloomberg Grains Subindex Total Return ETN (JJG)
iPath Bloomberg Grains Subindex Total Return ETN (JJG) is an exchange-traded note (ETN) that seeks to track the performance of a basket of grain commodities. The ETN invests in a variety of grain commodities, including corn, wheat, soybeans, and more. JJG is one of the most popular ETNs in the space, with over $100 million in assets under management.
The ETN is highly liquid, with over 4 million shares traded daily. The ETN has a 0.75% expense ratio and is benchmarked against the Bloomberg Grains Subindex. JJG has been another strong performer over the year, having yielded investors a 29.51% return.
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