We highlight the resurfacing of call buyers in PowerShares DB Agriculture (NYSEArca: DBA) now that we are in the month of August. Recall, that early in July, amidst severe drought conditions in the U.S. that affected a broad swath of agricultural commodities including Corn, Wheat, Soybeans, and countless others.
DBA, which is based on the DBIQ Diversified Agricultural Index, has a rules based methodology that invests in ag futures in dynamic proportions over time.
Currently, top holdings in DBA are futures in the following commodities (Sugar, 13.36%, Live Cattle 12.68%, Corn 12.17%, Soybeans 10.69%, and Cocoa, 10.05%). [How High Can Corn ETF Rally on Drought?]
It is also worth pointing out that DBA is an Exchange Traded Fund, not an Exchange Traded Note or ETN, so this should attract advisors and institutions whom may normally be averse to using ETNs for any given number of reasons. [ETNs are Not ETFs]
YTD, DBA is now up 4.26% after the most recent leg-up and renewed buying interest in Ags, while since the fund’s inception in January of 2007, the fund has returned 20.34%.
PowerShares DB Agriculture