In this article, we discuss 5 best agriculture ETFs to buy. If you want to read our discussion on the agriculture industry, head directly to 11 Best Agriculture ETFs To Buy.
5. Teucrium Agricultural Fund (NYSE:TAGS)
5-Year Share Price Performance as of March 29: 46.24%
Teucrium Agricultural Fund (NYSE:TAGS) is a singular fund offering investors access to the price movements of corn, wheat, soybeans, and sugar futures within a brokerage account. Teucrium Agricultural Fund (NYSE:TAGS) is one of the best agriculture ETFs. The fund was established on March 28, 2012. Currently, the ETF’s expense ratio is 0.13%, along with net assets of $14.5 million.
4. Invesco Food & Beverage ETF (NYSE:PBJ)
5-Year Share Price Performance as of March 29: 46.66%
Ranking 4th on our list of the best agriculture ETFs is Invesco Food & Beverage ETF (NYSE:PBJ). Invesco Food & Beverage ETF (NYSE:PBJ) tracks the Dynamic Food & Beverage Intellidex Index, with a focus on capital appreciation. It consists of 30 US food and beverage companies engaged in the manufacture, sale, or distribution of food and beverage products, agricultural products, and new food technology development. As of March 28, 2024, the fund’s expense ratio came in at 0.57%. Invesco Food & Beverage ETF (NYSE:PBJ) was launched on June 23, 2005.
The Kroger Co. (NYSE:KR) is one of the top holdings of Invesco Food & Beverage ETF (NYSE:PBJ). On March 14, The Kroger Co. (NYSE:KR) declared a $0.29 per share quarterly dividend, in line with previous. The dividend is payable on June 1, to shareholders on record as of May 15.
According to Insider Monkey’s fourth quarter database, 45 hedge funds were bullish on The Kroger Co. (NYSE:KR), compared to 41 funds in the prior quarter.
In its fourth quarter 2023 investor letter, Oakmark Global Fund stated the following regarding The Kroger Co. (NYSE:KR):
“The Kroger Co. (NYSE:KR) (U.S.) is the second-largest grocery retailer in America, behind only Walmart. Although the grocery industry is highly competitive, Kroger’s scale advantages allow it to offer a more compelling value proposition than smaller peers and earn higher returns on capital. In recent years, the market has assigned Kroger a lower multiple due to concerns that e-commerce would disrupt traditional brick-and-mortar grocery businesses. However, we believe Kroger’s performance through the pandemic highlighted that its store footprint, distribution infrastructure, technology investments and strong brand all position the company well for a world with higher online grocery adoption. The stock trades for just 10x our estimate of next year’s EPS, which we believe is attractive given Kroger’s competitive positioning and earnings growth outlook. The pending merger with Albertsons could accelerate the company’s earnings growth and produce additional scale advantages. If the merger is not approved, the company will have the capacity to return over 25% of its market cap to shareholders.”
3. Invesco DB Agriculture Fund (NYSE:DBA)
5-Year Share Price Performance as of March 29: 50.33%
Invesco DB Agriculture Fund (NYSE:DBA) ranks 3rd on our list of the best agriculture ETFs. The fund aims to mirror the performance of the DBIQ Diversified Agriculture Index Excess Return. The fund offers investors a cost-effective means to invest in agricultural commodity futures, with returns tied to the index’s performance, including interest income from US Treasury securities and money market income, minus expenses. Invesco DB Agriculture Fund (NYSE:DBA) was launched on January 5, 2007. The ETF’s expense ratio as of March 28, 2024 stood at 0.93%.
2. Teucrium Soybean (NYSE:SOYB)
5-Year Share Price Performance as of March 29: 60.06%
Teucrium Soybean (NYSE:SOYB) offers investors a straightforward method to access soybean futures prices within a brokerage account. Soybeans are a crucial agricultural commodity utilized globally in multiple industries, including as feed, oils, substitutes for wood, foam, ink, and crayons. Currently, Teucrium Soybean (NYSE:SOYB)’s expense ratio stands at 0.22% and its net assets equal nearly $34 million. It is one of the best agriculture ETFs to invest in.
1. Teucrium Sugar Fund (NYSE:CANE)
5-Year Share Price Performance as of March 29: 85.30%
Teucrium Sugar Fund (NYSE:CANE) ranks 1st on our list of the best agriculture ETFs. The fund offers investors a convenient means to access sugar futures prices within a brokerage account. Currently, Teucrium Sugar Fund (NYSE:CANE)’s expense ratio is 0.29% and its net assets amount to $16.5 million.
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