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.
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.