Best agriculture ETFs to buy in 2022

Agriculture ETFs can give you easy exposure to some of the most important commodities in the global food chain. Here our experts pick out the best ones on the market today.
By:
Updated: Sep 22, 2022
Tip: our preferred broker is, eToro: visit & create account

In this guide we pick out some of the leading agriculture ETFs available and explain the most important features of each one. Get a quick overview of what’s out there, the benefits of using Exchange-Traded Funds, and why these five are the best way to meet your agricultural needs.

What are the top agriculture ETFs to buy?

Our experts have ranked their top picks in the table below. It includes all the information you need to invest in one straight away, and you can simply head to a broker and enter the ETF symbol to do so now. Alternatively, keep reading to learn more about why each fund has been chosen.

#ETF symbolETF NameWhere to trade
1DBAInvesco DB Agricultural Fund
2CORNTeucrium Corn Fund
3TAGSTeucrium Agricultural Fund
4VEGIiShares MSCI Global Agriculture Producers ETF
5RJAElements Rogers International Commodity Index-Agriculture
List chosen by our team of analysts, July 20th 2021

1. Invesco DB Agriculture Fund

The Invesco DB fund is a wide-ranging fund that speculates on the future performance of most agricultural commodities. It trades futures contracts on things like sugar, coffee, soybeans, wheat, and live cattle, which make up its top five holdings.

The fund was set up in 2007 and over the long term, its performance has been flat overall. However, it has returned much better results over the last few years, particularly in the aftermath of the pandemic when commodity prices have been on the rise across the board.

This ETF dwarfs most other agricultural funds in terms of the assets it holds, and breadth is certainly a feature to look out for. Something to note, however, is that it rebalances (updates) its holdings only once per year. Combined with the fact that it deals in futures contracts, it means there is the potential for it to be volatile and slow to adjust to any changes in the market.

2. Teucrium Corn Fund

This fund gives you the opportunity to speculate on corn prices, or use corn as a hedge against inflation. Its shares are valued based on an average of the price of a 3-month corn futures contract across a few different commodity exchanges.

The Teucrium Corn Fund is just one of a group of ETFs that track the price of different grains. There are also ones available for wheat, soybeans, and sugar, and they’re best used as a way to predict short term changes in the prices of each one. That’s opposed to as a long term, ‘set it and forget it’ fund, which is how investors usually treat ETFs.

3. Teucrium Agricultural Fund

This agricultural fund is the fifth Teucrium option that includes all four of the commodities listed above. That means it’s more diverse than either of the other funds which let you speculate on specific price changes, and it can be used in tandem with, or instead of, the Teucrium fund above.

As with any broad-stroke agricultural ETF, it’s a great option as a means to diversify your portfolio away from just owning stocks or a single type of asset. 25% of its assets are in each of the four commodities, and the price of the shares reflects an average of the 3-month future price of each one.

4. iShares MSCI Global Agriculture Producers ETF

This iShares fund is a little different to the three above it in this list because it owns stocks in companies instead of speculating on the price of commodities themselves. All those companies are in the business of agriculture, so it offers a more stable alternative to the short term volatility of commodity prices.

Its largest holding is John Deere, which manufactures heavy machinery that’s used by the agricultural industry and makes up 20% of the portfolio. A couple of other examples of the companies it owns are ones that produce fertiliser or trade commodities themselves.

Over the last few years the fund has returned a little over 10%, although again a lot of that has come since the pandemic. There’s no doubt that even if commodity prices fall away again then it still represents one of the most reliable ways to invest in the agriculture industry across the world.

5. Elements Rogers International Commodity Index – Agriculture

This fund offers another way to invest in a range of commodities, but in a slightly different way to the competition. The ETF tracks the 1-month future price of 21 commodities in total, weighted so that it is less exposed to popular ones like corn and soybeans.

Instead, it ups the weight of other commodities, specifically agricultural feed, cotton, and livestock, so that it stands out from the crowd. The fund has been running since 2007 and offers a great alternative to most agricultural ETFs that are heavily reliant on the performance of major grains.

Where to buy the best agriculture ETFs

To buy any ETF, you need to sign up for an online broker. The table below includes the best ones and you can click through the links to get started now.

1
Min. Deposit
$ 10
Promotion
User Score
10
Up to $240 bonus!
Deposit with ACA, Wire, Pay with my bank
Invest for dividends and get payout on stocks on Ex-Dividend day
Start Trading
Payment Methods:
Bank Transfer, Wire Transfer
Full Regulations:
CySEC, FCA
Investoo Ltd is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc., as applicable. This compensation incentivizes Investoo Ltd to describe those products and services in favorable terms. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success.
2
Min. Deposit
$ 100
Promotion
User Score
10
Trade out-of-hours on over 70+ US stocks
Get exposure to a wide range of popular UK, US and international stocks
Enjoy flexible access to more than 17,000 global markets, with reliable execution
Start Trading
Payment Methods:
Bank Transfer, Credit Card, Debit Card, PayPal
Full Regulations:
ASIC, FCA, FINMA, is a licensed bank (IG Bank in Switzerland)
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
3
Min. Deposit
$ 0
Promotion
User Score
9.5
$0 commission and $0 Options contract fees
Upgraded research with advanced charts
Smart Menus for faster trades
Start Trading
Payment Methods:
Full Regulations:

What is an agriculture ETF?

It’s an ETF that owns agricultural commodities, or stocks in companies that work in the agriculture industry. An ETF is an exchange-traded fund, which is a fund that trades on the stock market and owns a range of different assets.

Are agriculture ETFs a good investment?

They can be, although different commodities might be appealing for very different reasons. There are some, such as corn or other grains, which are popular as a hedge against inflation (because commodity prices tend to rise along with inflation).

In general, the biggest selling point of agricultural ETFs is that they’re much easier for a beginner to use than the actual commodities market. Tring to trade futures, or speculate on specific markets through CFDs, can be a daunting prospect. ETFs, meanwhile, take away all of the complexity and allow you to get exposure to a broad range of commodities with a few clicks.

There are some reasons to be careful with ETFs that deal with specific commodities, as unpredictable events like bad harvests or natural disasters can have an outsized effect on your investment. However, investing in one with a broad-brush approach might be the best way for the average person to get access to the agriculture market.

Latest agriculture news

After a see-sawing two months of intense discussions, negotiators from Russia, Ukraine, Turkey and the United Nations have finally broken ground on a much-awaited joint agreement to facilitate grain exports through the Black Sea. Both countries are systemically important to the global agricultural trade. According to the Food and Agriculture…
Corn price is trading at its lowest level in about six weeks. Improved pace of planting and waivers related to the summer gasoline blend are the key bearish drivers. corn price Fundamentals In the WASDE Report released earlier in May, the US Department of Agriculture (USDA) lowered its outlook…
Coffee price has been trading above the psychologically crucial level of $200 cents/lb since November 2021 as demand for the agricultural commodity strengthens. Even so, it is yet to hit the pre-pandemic levels. The predicted surplus, coupled with eased concerns over frost in Brazil are the key bearish drivers. What’s…
India’s decision to ban wheat exports has come amid a deepening food crisis. Severe bottlenecks have plagued the global agricultural supply chain for years, even pre-dating the pandemic. High fuel prices, swine flu, El Nino, increased government stocking, and biofuel demand contributed to food inflation. Important producers such as…
Sugar price has extended its losses to trade past the psychological level of $19.00 cents per pound to $18.72 as at 11:36 a.m GMT. A weaker Brazilian Real is the key bearish driver in the market. Even so, high ethanol demand may sustain the ICE futures above the support level…
Corn price has pulled back from the 9-year high of $8.20 per bushel  it hit at the beginning of the week with the market in a profit-taking mode. Even so, CBOT futures are still holding steady above $8.00. Prior to this week, the commodity had not reached that level since…
Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.