March 16, 2008 at 1:00 am by Tom Lydon
The agriculture sector was once a real yawner, but these days, exchange traded funds (ETFs) are livening things up.
Market Vectors Global Agribusiness (MOO) is up 36.6% since its Sept. 5 launch, and it was up nearly 50% at one point. PowerShares DB Agriculture (DBA) is up a whopping 72% since its Jan. 5 inception.
The two funds have their differences: DBA invests in futures contracts for wheat, corn, soybeans and sugar. It’s more actively traded and more liquid than MOO, which invests in agriculture companies around the world, reports 24/7 Wall Street for MarketWatch.
While commodities are hot right now, just keep in mind that what goes up must eventually come back down. Make sure you have your exit strategy in place if this sector shows signs of a turnaround.
For full disclosure, some of Tom Lydon’s clients own shares of DBA.
Tags: Agriculture, Corn, DBA, Wheat
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March 16th, 2008 at 12:33 pm
Any thoughts on GRU?