New ETF For The Small Guys In Agribusiness
March 23rd, 2011 at 3:00pm by Tom Lydon
The IQ Global Agribusiness Small Cap ETF (NYSEArca: CROP) began trading this week; an exchange traded fund (ETF) that represents the smaller companies involved in agribusiness. Neil Anderson for Mutual Fund Wire reports that Adam Patti, CEO of Index IQ, describes the timing of the launch in lock step with volatile food prices.[Commodities Get New ETF Players.]
February saw the largest jump yet in food prices, up 3.9%, the largest since 1974. The changing supply and demand food chain represents the opportunity for the small cap companies, specializing in agribusiness, to generate significant growth.[New ETFs For Specific Areas Of The Market.] Factors such as changing dietary demands, global supply shortages and growing populations are encouraging food prices to rise.
CROP joins other agriculture related ETFs including:
Tisha Guerrero contributed to this article.
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