A new small-cap exchange traded fund for agribusiness stocks is a potentially riskier play on the sector, which some analysts say is backed by solid fundamentals, including higher food prices and population growth.
Paul Weisbruch, vice president of ETF/options sales and trading at Street One Financial, highlighted IQ Global Agribusiness Small Cap ETF (NYSEArca: CROP) in a recent strategy note. The index is comprised of global small-cap stocks that are involved in the agribusiness sector.
An environment with rising food prices, growing populations and increasing demand for alternative fuels could help sector ETFs such as CROP, Weisbruch says. [Agriculture ETFs Harvest Gains.]
- CROP has an expense ratio of 0.75% and has 52 holdings. Top holdings include: TSCO 8.87%, VT 8.73%, SFD 7.82%, NUO 5.31% and Nippon Meat Packers 4.91%.
- Sector allocations include: crop production and farming 26.68%, agricultural supplies and logistics 20.12%, livestock operations 19.44%, agricultural machinery 16.78%, biofuels 9.63 and agricultural chemicals 6.85%.
- Country allocations include: U.S. 24.94%, Japan 15.34%, Hong Kong 11.16%, Canada 9.50%, China 7.76%, Australia 5.54%, Netherlands 5.23%, Spain 5.13%, Indonesia 4.75%, Brazil 4.18%, Ireland 1.63%, Sinapore 1.59%, U.K. 1.50 and Thailand 1.23%.
For more information on the agriculture sector, visit our agriculture category.
Other related agriculture ETFs include:
- Market Vectors Agribusiness ETF (NYSEArca: MOO)
- PowerShares DB Agriculture Fund (NYSEArca: DBA)
- PowerShares Global Agriculture Portfolio (NYSEArca: PAGG)
- Jefferies | TR/J CRB Global Agriculture Equity Index Fund (NYSEArca: CRBA)
Max Chen contributed to this article.
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.