Agriculture ETFs are based on a basket or index of major agricultural commodities. When it comes to exposure, the biggest difference among the 10 products in the segment is strategy and coverage. However, they can vary greatly on weighting and their selecting contracts. Their styles range from consumption-weighted baskets, production-weighted baskets, to methodologies using liquidity or multifactor models to weight contracts. There is also a wide range of strategies in the group for selecting specific contracts within a commodity to hold, many of which aim to mitigate contango or profit from backwardation.
With 19 ETFs traded in the U.S. markets, Agriculture ETFs gather total assets under management of $1.23B. The average expense ratio is 1.17%. Agriculture ETFs can be found in the following asset classes:
The largest Agriculture ETF is the Invesco DB Agriculture Fund DBA with $638.90M in assets. In the last trailing year, the best performing Agriculture ETF was the NIB at 18.41%. The most-recent ETF launched in the Agriculture space was the iPath Series B Bloomberg Cotton Subindex Total Return ETN BAL in 01/17/18.