ETF Trends
ETF Trends

It seems that, in some ways, agricultural exchange traded funds (ETFs) may be immune to the financial crisis as they have seen an enormous inflow of assets.

Reasons for this inflow could include the following:

This doesn’t mean that all commodities and indexes that track commodities are created equal.  Know your risk appetite, do your homework, keep transparency in mind and diversify.  Also remember one more thing, we suggest utilizing moving averages when going into and out of a position.

One could play the iPath DJ Grains ETN (JJG), which is down 1.28% over the last month; keep in mind that this ETN is heavily influenced by the credit markets and has been flirting with its 50-day moving average.

Another play, which offers more diversity is the PowerShares DB Agriculture Fund (DBA), which is up 0.08% over the last month and has been oscillating above and below its 50-day moving average.

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.