• Invesco DB Agricultural ETF is an exchange-traded fund that seeks to replicate the performance of the DBIQ Diversified Agriculture Index Excess Return 
• The underlying index includes a diversified basket of agricultural commodities such as corn, wheat, soybeans, sugar, etc
• DBA was launched on January 5, 2007, and has an expense ratio of 0.91%
• Over 43% of the fund’s capital is invested in mutual funds tracking the DBIQ Diversified Agriculture Index Excess Return, while more than 35% is held as United States Treasury Bills 
• The fund has an annual dividend yield of 0.45% 

The Invesco DB Agricultural ETF has returned roughly 3.5% over the past 12 months. The ETF is primarily invested in mutual funds and provides a steady and relatively stable opportunity for investors to gain exposure to the global agricultural market. 

For investors with a more short-term focus, DBA might not be the best choice, as the fund tracks an index and its performance is entirely dependent on the performance of the DBIQ Diversified Agriculture Index Excess Return. 

• The VanEck Agribusiness ETF is an exchange-traded fund that aims to track the performance of the MVIS Global Agribusiness index, which is designed to provide investors with exposure to companies across the agribusiness value chain, including but not limited to agriculture equipment manufacturers, agrochemical companies, seed producers, agricultural products processors, and other related businesses
• The fund was launched on August 31, 2007, and has an expense ratio of 0.53%
• Some of its largest holdings include stocks like ZTS (8.73%), DE (8.59%), BAYN (6.86%), NTR (6.38%), and ADM (6.08%), among others 
• VanEck Agribusiness ETF has an annual dividend yield of 2.15%

Over the past year, the VanEck Agribusiness ETF has returned -9.27%, which is due to the slow correction happening among its constituent companies, as well as the major supply chain issue facing the global agriculture market. 

Overall, MOO is a solid option for investors that are bullish on the long-term conditions of the global agricultural sector. 

• The Teucrium Agriculture Fund tracks its own titular Teucrium TAGS Index, which invests in four major commodities - corn, wheat, soybeans, and sugar 
• The fund was launched on March 28, 2012, and has an expense ratio of 0.13% 
• The fund is almost equally distributed among its sub-funds that each invest in one of the four commodities mentioned above, each accounting for roughly 25% of the parent fund’s holdings 
• TAGS does not pay dividends to shareholders 

TAGS has returned roughly 1.6% over the past 12 months, with two noteworthy major price fluctuations happening in June and July of 2023. 

The growing price of wheat and corn has skyrocketed the fund into new highs in 2023, with the 5-year performance standing at a 50% gain for TAGS investors. 

• The Global X Agtech and Food Innovation ETF is an exchange-traded fund that seeks to replicate the performance of the Solactive AgTech & Food Innovation Index, which tracks the performance of innovative agricultural tech and food innovation companies 
• KROP is invested in a variety of food innovation stocks, such as NTR (14.65%), CTVA (12.48%), and BYND (6.00%), among others, including stocks of Chinese agricultural tech companies 
• KROP was launched on July 12, 2021, and has an expense ratio of 0.50%
• The fund has an annual dividend yield of 0.90%

Global X AgTech and Food Innovation ETF has returned -36.5% over the past 12 months, which has been a difficult period for overvalued tech stocks. However, with considerably lower valuations, KROP may be an attractive long-term investment for those who are bullish on the companies included in the ETF’s portfolio. 

The ETF also invests in Chinese companies, which have also taken massive hits in 2023 - resulting in an overall negative performance throughout the year. 

• The iShares MSCI Agriculture Producers ETF is an exchange-traded fund that tracks the MSCI ACWI Select Agriculture Producers IMI index, which consists of some of the largest agricultural companies in the world 
• The fund was launched on January 31, 2012, and has an expense ratio of 0.39%
• Some of VEGI’s largest holdings include - DE (23.20%), ADM (8.90%), CTVA (7.06%), NTR (6.34%), and BG (3.19%), among others 
• VEGI has an annual dividend yield of 1.96%

VEGI has returned -7.75 over the past 12 months, which has been partially held up by the fund’s outsized holding of John Deere stock (DE), which has gained 17% over the same period of time. 

This poses some risks for the fund, as the performance of VEGI is heavily influenced by the price of John Deere stock. 

However, the fund also includes a number of other prospective agricultural stocks that have plenty of upside potential and VEGI is positioned to be one of the most attractive alternatives on the market. 

Understanding the inherent benefits and risks associated with investing in agricultural ETFs is essential to decide which one best fits your portfolio and whether to invest in one at all. 

Pros

• Diversification - Agricultural ETFs may be a welcome addition to portfolios that are more focused on other sectors, which can help disperse risk exposure and allow investors to access a diverse pool of commodities and equity securities 
• Convenience - ETFs are traded on stock exchanges, making them easy to buy and sell during regular trading hours. They offer a convenient way for investors to access the agricultural sector without the need for direct ownership of physical assets
• Liquidity - many agricultural ETFs have good liquidity thanks to being listed on a major stock exchange, which makes it easy to buy and sell these assets 
• Low minimum investment - ETFs allow investors to access a diversified agricultural portfolio with a relatively low initial investment compared to directly trading commodities or investing in individual agricultural companies
• Cost-effective - ETFs that track an underlying index often have lower expense ratios compared to actively managed funds, making them a cost-effective way to gain exposure to the agricultural sector

Cons

• Market risk - Agricultural ETFs are subject to market risk and can be influenced by factors such as supply and demand dynamics, weather conditions, geopolitical events, and global economic trends
• Commodity price volatility - If the ETF holds a significant portion of agricultural commodities, it can be exposed to price volatility in those commodities, which can impact the ETF's performance
• Company-specific risk - If the ETF is heavily invested in a few stocks, their performance can have an outsized effect on the returns generated by the ETF
• Tracking error - While ETFs are designed to track an underlying index, there can be tracking error, or deviations in performance from the index due to factors such as fees, liquidity, and market conditions
• Limited control - Investors do not have the final say about which companies represent what share of the ETF’s capital, which makes the customization of ETFs limited 

• Agricultural ETFs give investors the opportunity to diversify their portfolios and gain exposure to the global agriculture market
• Such ETFs may invest in commodity futures or equity shares of major agricultural companies around the world
• Some ETFs may be overly exposed to the price movements of a particular stock or commodity
• Most agriculture ETFs track a sector-specific index, which makes them cost-effective due to passive management 
• ETFs such as VEGI, KROP, TAGS, MOO and DBA all offer different methods of gaining exposure to the price movements of commodities and agriculture stocks