Dynamic Duos of ETFs | ETF Trends

Batman and Robin, Laurel and Hardy, Chick and Stu, the list of dynamic duos goes on, so how about biotech and agriculture, within the realm of exchange traded fund (ETF) investors?

Biotechnology is believed to help solve the world’s food shortage/crisis, by inventing a flood resistant rice in Bangladesh, or a virus-resistant papaya in the Philippines, reports Reuters. Not only would this help feed the masses, biotech is also a gateway to help out the world’s poorest rural inhabitants.

Biotechnology has created "GMO’s", or genetically modified organisms, or "Frankenfoods" to many Europeans. By using this technology the food production could increase by raising crop yields, or producing crops in regions that are less than fertile.

Biotech ETFs that may get a growth spurt:

  • Biotech HOLDRs (BBH), up 3.3% year-to-date
  • iShares Nasdaq Biotechnology (IBB), down 3.5% year-to-date
  • PowerShares Dyanamic Biotech and Genome (PBE), down 5.3% year-to-date
  • SPDR S&P Biotech (XBI), down 0.3% year-to-date

This concept is still in development as there is much to think about, such as could this add more possibility for a worldwide drought? Will genetically engineered crops threaten biodiversity?

Agriculture ETFs would that would stand to benefit:

  • PowerShares DB Agriculture Fund (DBA), up 8.7% year-to-date
  • Market Vectors Global Agribusiness (MOO), up 9.3% year-to-date

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.