Agriculture ETFs tap rising demand

Article Excerpt

Crop and food prices will continue to fluctuate from year to year, but it’s a good bet that global food production and consumption will continue to increase. We think the best way to profit is through shares of well-established companies with a range of operations to help offset swings in commodity prices. Widely diversified ETFs, like these two, offer that combination of pluses. Meanwhile, please see the supplement on page 69 for more information about the investment opportunities and risks associated with agriculture commodities and production. ISHARES GLOBAL AGRICULTURE INDEX ETF $60.93 (Toronto symbol COW; TSINetwork ETF Rating: Aggressive; Market cap: $298.9 million) passively tracks the Manulife Asset Management Global Agriculture Index. Stocks are weighted according to their market caps. The fund invests globally although 94% of the portfolio holdings are U.S.-based; other holdings include Canada and Argentina. Agricultural and Farm Machinery (27%), Agricultural Products and Services (25%), and Fertilizers (22%) are the main sectors. The ETF holds 36 stocks of which the top 10 make…