Best agriculture ETFs to buy in 2021

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: James Knight
James Knight
When he isn’t at work, James is an avid trader and golfer who likes to travel. He once fed,… read more.
Updated: Sep 13, 2021
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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 ETFs, 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 name
1DBAInvesco DB Agricultural Fund
2CORNTeucrium Corn Fund
3VEGIiShares MSCI Global Agriculture Producers ETF
4TAGSTeucrium Agricultural Fund
5RJAElements Rogers International Commodity Index-Agriculture
List chosen by our team of analysts, September 12th 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 invest in an 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
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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

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Soybean price has been on a downtrend since mid-July. It is on a rebound; trading sideways around 1,345’0 in the CBOT market. soybean price Demand concerns Soybean price’s downtrend is largely due to the recent slowdown in China’s importation of the commodity from the United States. Since last summer,…
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Cocoa price is down by 1.06% at $2,344 amid heightened supply in Ivory Coast and Ghana. However, the rise in demand has helped maintain the prices above $2,300 since late last year. cocoa price Increasing demand The key factor that has helped maintain cocoa price above the crucial level…
Coffee price is at its highest level since November 2016. The surge has been fuelled by the weakening US dollar and rising demand. coffee price Weakening US dollar Coffee price has been finding support in the weakening US dollar. The declining value of the greenback creates a favorable environment for…
Soybean price is at a 9-year high ahead of May’s WASDE report. The soaring prices have placed it in the overbought territory at an RSI of 80. The report comes at a time when surging commodity prices have revived inflation concerns. US corn is currently up by 0.22% at…

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James Knight
Financial writer
When he isn’t at work, James is an avid trader and golfer who likes to travel. He once fed, rode, and ate an ostrich all on… read more.