Ryan helps you understand commodity ETFs and shows you how to profit from agriculture ETFs.
Commodity ETFs (exchange traded funds) seem to be doing well, but agriculture ETFs are doing better than well. Over all of the exchange traded funds on the market one in particular is flying high. PowerShares DBA ETF has shown more than 50% return since January, 2007, when this ETF was introduced. During the same period S&P 500 was down more than 5%. DBA is one of several agriculture ETFs out there and they all seem to be performing.
There seems to be a trend that agriculture exchange traded funds goes up when stock market declines, according to the analysts. Based on this performance, would hedging your portfolio with agriculture ETFs make sense? That really depends on your prediction of the stocks you own and whether you think they are doing well enough on their own. If you see the stock market in decline, it may be worth your while to take a look at commodity ETFs, particularly agriculture.
Supply and demand for agricultural products is the key to why these commodity ETFs are doing so well. The demand for crops around the world, particularly in China and India is very high, and they are getting their supplies shipped in because they cannot keep up or they are predicting a future need. China has the Olympics coming up and have been seemingly stocking up on wheat. Better health education around the world is causing a higher demand for grains. Corn is on the rise for feed. Even sugar is in higher demand, maybe because of the effect recent weather has had on global crops.
Agriculture ETFs are about predicting the future and the experts are seeing this rise in agriculture exchange traded funds as ongoing. Consumers might not be happy about the price of oil causing the rising costs at the grocery stores. Nobody wants to see that these crazy weather anomalies seemingly caused by global warming causing so much disaster. But commodity agriculture ETF investors are certainly able to look at the silver lining in these clouds.
Even the analysts cannot predict the future, though some of them seem to do a pretty good job of trying. But they are saying that the future looks good for commodity ETFs, and agriculture exchange traded funds in particular are getting an expert nod. If you got in on the agriculture game by purchasing some DBA exchange traded funds back when it was introduced in January, 2007, then you already know what an agriculture ETF can do for your portfolio. If you haven't given commodity ETFs a try yet, maybe now is the time.
You are the only one who can decide which investments are right for you. Only you know what your portfolio looks like and whether the ever dropping S&P 500 is doing for you and whether you need something in there that will counteract it. Take the time to study up on agriculture exchange traded funds. They could be the boost your portfolio needs. You may not have to be as concerned about your other stocks if you have some commodity ETFs to back them up.
- Related Videos
- Related Articles
- Ask / Related Q&A
Fast Debt Relief - How to Eliminate Debt in the Minimum Time Frame
By: Matt Couch | 31/12/2009We generally have the impression that the settlement process is a long and tedious job.
Why Having Over $10,000 in Unsecured Debt Could Play to Your Advantage in Eliminating Debt
By: Matt Couch | 31/12/2009When it comes to eliminating debt, you have unlimited options to support your cause, but you need to stick to the best program so that your problems are well addressed.
Legal Debt Relief Options - How to Legally Eliminate 70% of Your Unsecured Debt With a Settlement
By: Matt Couch | 31/12/2009This economic recession had an unprecedented impact like increased unemployment, large financial bailouts, the and backbone of economy seemed to be collapsing.
Refinance Home Loan: Is It Another Mortgage Option?
By: Asem Eltaher | 31/12/2009There are many reasons why a person may want to take advantage of this financial aid. They can be very beneficial in many ways to the homeowner. For example, first time home buyer loans and people seeking for second mortgage can get huge benefits from this option. So, reveal here the needed information to know where you should go
Free Debt Settlement Counseling - How to Get Help With Debt Online For Free
By: Matt Couch | 31/12/2009While you are actively searching for the right guidance on debt management, there are millions like you doing the same.
Eliminate Debt - How the Government Has Made Debt Relief Options More Available
By: Matt Couch | 31/12/2009The havoc created by the economic recession has turned the market upside down.
Help With Credit Card Debt - Why Creditors Are Fearful and How You Can Eliminate Debt
By: Matt Couch | 31/12/2009In the current economic scenario most of the citizens of America are facing the debt crisis.
Payday Loans to Reduce Debts Significantly
By: Sandra Ruper | 31/12/2009Many are not aware of the benefits one can avail by taking a payday loan. If you are not aware of what a payday loan is then here is an overview of what it is and how you can get one to make the most of it. There will be...
Uranium ETF - Does It Exist?
By: Ryan Moxie | 21/07/2008 | FinanceMy portfolio consists of a wide variety of stocks and commodity ETFs. I would like to add some uranium to my portfolio but can't afford the stocks. Is there a uranium ETF available, because I'm turning up nothing in my search.
Unique Dog Names from Nature
By: Ryan Moxie | 18/07/2008 | PetsUnique dog names can come from many sources. The best unique dog names come from places that most people wouldn't think to look. Nature can give us dog names that are as unique as nature itself can be.
Natural Gas ETF, Economical and Ecological
By: Ryan Moxie | 15/07/2008 | FinanceCommodity ETFs (exchange traded funds) have been around for long enough that investors are well aware of their presence now, but a newcomer to the market is making some waves. Natural gas ETFs have been on the market for just over a year and have done pretty well so far.
Chronic Cough Could Be Acid Reflux Cough
By: Ryan Moxie | 15/07/2008 | HealthMore than 1/3 of people who visit their doctor with complaints of chronic cough are diagnosed with acid reflux. Even people with no other signs of acid reflux, like heartburn, can experience acid reflux cough. Many people aren't even aware this is possible so it often goes untreated.
What Are The Most Popular Dog Names?
By: Ryan Moxie | 12/07/2008 | PetsAre you ready to start choosing dog names for a new puppy in your life? Dog names aren't hard to find, especially if you want to keep up with the Jones' and choose from the most popular dog names. Believe it or not, Rover and Spot aren't even on the list of the most popular dog names in the United States today.
What Foods Cause Acid Reflux?
By: Ryan Moxie | 12/07/2008 | HealthMany of us suffer from symptoms of acid reflux and have tried over the counter antacids and medications with little or no relief. Doctors are just going to give us prescriptions for expensive medications, which might work but they are costly and some people just can't afford them, so they continue to suffer. The good news is that relief could be as close as making some simple changes to your diet.
Energy ETFs - Alternative Energy is Hot
By: Ryan Moxie | 11/07/2008 | FinanceWith today's economy, commodity ETFs (exchange traded funds) are the investment to watch. Energy ETFs are among the most popular of the commodities. Energy exchange traded funds include crude oil, coal, natural gas, and even gasoline. Alternative energy ETFs are now making their way into our hearts.
Is There a Natural Cure for Acid Reflux?
By: Ryan Moxie | 08/07/2008 | HealthAcid reflux is a problem that affects many people. The most common symptom of acid reflux is heartburn, which feels like a burning in the chest and throat areas. Medication can be taken to alleviate the symptoms of acid reflux, but a lot of people prefer not to take medications and opt for natural, or homeopathic, cures instead.