Quote:
Originally Posted by daddyrnac
im looking for:
europe (unhedged) focussed funds
soft agricultural etfs
any suggestions? or any suggestions where to start?
Unless you're a short or intermediate-term trader, I recommend staying away from agricultural or other commodity ETFs/ETNs. With occasional exceptions, most ags and commodities are in contango most of the time, which imposes a serious roll cost on the ETFs/ETNs. Basically, the ETFs over time will always seriously underperform the underlying commodity price. And if you think you can take advantage of that by shorting the ETFs, that sounds good in theory, but the problem is that the borrowing interest rate to short most commodity ETFs is fairly high -- ranging from 1% to even 7 or 8% per year. No bueno.
This article is a bit dumbed down, but it explains the contango ETF problem in pretty understandable terms:
http://commodityhq.com/library/under...l-gas-example/ . Natural gas is the most notorious example because the contango tends to be so steep, but this same thing is evident in virtually every commodity fund, including the softs.
And on top of that, some of the commodity ETFs have really high expense ratios. The Teucrium Corn ETF (CORN), for example, has a a 2.75% expense ratio. That's awful and will create a serious headwind against your returns.
But since you asked for ag ETFs/ETNs, here are the ticker symbols of the ones I know off the top of my head:
Coffee -- JO
Cotton -- BAL, CTNN
Sugar -- SGG, SGAR
Cocoa -- NIB, CHOC
Corn -- CORN
Wheat -- WEAT
Soybeans -- SOYB
Grains+Softs+Livestock -- DBA
Grains+Softs Only (no Cocoa) -- JJA
Grains Only -- JJG
Softs Only -- JJS
Livestock (Cattle + Hogs) -- COW
Last edited by LDubbyDub; 03-05-2015 at 07:10 PM.