ETFs For Rising Food Prices

July 11, 2012

A combination of increased population and abnormally high temperatures in North America has set the U.S. up for one of its worst crop seasons and higher grocery bills. The good news is there are ways to hedge against the incoming increase, according to a blog posted on Nasdaq’s website.

The PowerShares DB Agriculture Fund (NYSEArca: DBA) was singled out as one of the best ways to obtain broad exposure to agriculture commodities. For targeting core commodities like corn, wheat, soybeans and sugar, the fund-of-funds Teucrium Agriculture Fund (NYSEArca: TAGS) provides access to those four crops via four Teucrium ETFs, according to the blog by ETF industry insider Christian Magoon.

Another option for those wishing to stray from futures is the Market Vectors Agribusiness ETF (NYSEArca: MOO). The fund holds about 50 stocks of agriculture-related companies with over half of them based in the U.S. and Canada, the article said.

To read more about the funds listed above, visit Community.Nasdaq.com.

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