Food is always in style, and exchange traded funds (ETF) that track agriculture can help capitalize on that fact. Bush’s signing of the energy bill could push demand (and prices) even higher. The signing of the energy bill calls for an increased use of biofuels, which means that corn, sugar and palm oil will go into increased production.

Joanne Von Alroth at Investor’s Business Daily singles out the Market Vectors Agribusiness (MOO) as giving investors a reason to smile, apart from its ticker symbol. Since its inception four months ago, it’s up 31%.

In addition to MOO and others, there’s also PowerShares DB Agriculture (DBA), up 31.3% year to date, and iPath DJ AIG Agriculture TR Sub-Index ETN (JJA), up 12.1% year to date.

As we wrote earlier this week, the demand for food is only going to continue to grow as the worldwide population continues to explode, and agriculture-related ETFs are just one way for an investor to satisfy his or her appetite.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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