Invest in the Food Industry with Food and Beverage ETFs
A List of Food and Beverage ETFs
ETFs can make your investing life a little easier, and there are quite a few out there to choose from. Many target either the food and beverage industry as a whole or specific types of food-related products.
Whether you have a sub-sector of the food industry in mind such as sugar or livestock, or if you want to give your portfolio general exposure to the food market, you have several options. You can target food-related commodity futures or a food industry index, or even companies involved with specific foods or beverages. With livestock ETFs, you're not only targeting meat products but non-food products like leather gloves.
But commodities can be a bit difficult to trade for beginning investors. Index baskets are not the easiest trades to fill, and targeting equities to gain the right exposure can be taxing. Enter food ETFs—instant exposure to the food sector with one trade. Each fund is a mini-portfolio aimed at your food-investing goal, whether it's the entire industry or one certain type of food like corn.
If all this sounds like a good plan to you, here are some exchange traded funds and notes that target the food industry and some sub-sectors as well.
Broad Food Industry ETFs
- FUD - UBS E-TRACS CMCI Food Total Return ETN
- PBJ - PowerShares Dynamic Food & Beverage ETF
- BARN - Global X Farming ETF
- RGRA - RBS Rogers Enhanced Agriculture ETN
- CAFÉ - iPath Pure Beta Coffee ETN
- JO - iPath DJ-UBS Coffee Total Return Sub-Index ETN
- CHOC - iPath Pure Beta Cocoa ETN
- NIB - iPath DJ-UBS Cocoa Total Return Sub-Index ETN
- SGAR - iPath Pure Beta Sugar ETN
- SGG - iPath DJ-UBS Sugar TR Sub-Index ETN
- CANE - Teucrium Sugar Fund
Wheat and Grains ETFs
- GRU - ELEMENTS MLCX Grains Index Total Return ETN
- JJG - iPath DJ-UBS Grains Total Return Sub-Index ETN
- WEET - iPath Pure Beta Grains ETN
- WEAT - Teucrium Wheat Fund
- CORN - Teucrium Corn Fund
- SOYB - Teucrium Soybean Fund
Livestock and Cattle ETFs
- COW - iPath DJ AIG Livestock TR Sub-Index ETN
- LSTK - iPath Pure Beta Livestock ETN
Consult Your Broker
New funds are created all the time and others are taken off the market, so contact your broker or consult a financial professional if you have any questions about ETFs. Each fund should be diligently researched before you make any trade. Know what it is in each ETF and the risks associated with it. You might also want to watch the fund for a while before you invest. See how it reacts to different market conditions and follow any news about the ETF, its holdings, and the sector it represents.
Food ETFs are a great way to diversify a portfolio or to implement a strategy based on research or opinions you have about the industry. You can even use these ETFs to hedge any risk you might have in your portfolio from food-related assets or countries where these foods are main exports. Whatever your investing goals, ETFs will hopefully bear the “fruit” you expect.
Disclaimer: At the time of publication of this article, I do not have any open positions in the above food ETFs. - Mark Kennedy