Kerr also cautions investors: three years ago, corn was a bargain. Now it’s very expensive, it’s less of a deal and there’s more risk involved.
Playing commodities through ETFs has become a popular bet. TrimTabs Investment Research reports that assets in commodities are up 84%.
There are a number of ways to invest in commodities through both ETFs and ETNs. Some hold futures for certain commodities, others hold stocks for companies that deal with agriculture. Among your choices:
- MLCX Grains Index ETN (GRU)
- Market Vectors Global Agribusiness (MOO)
- PowerShares DB Agriculture (DBA)
- iPath Dow Jones Agriculture (JJA)