Email of the day (2)
"Does anyone in the collective know of an ETF that tracks the grains? - Thanks"
Eoin Treacy's view
Thank you for this question which others may also be interested in. Subscribers
will be aware of our reservations about funds that hold passive positions in
futures for investors. Such instruments have management, contango and interest
rate fees which make them more appropriate for trading than investing, particularly
during corrective phases.
The ETFS
Grains Fund is listed in the UK and has both US
Dollar and British Pound versions.
It tracks the Dow Jones UBS Total Return Grains Index which comprises futures
contracts of corn, soybeans and wheat. The fund has performed in line with recent
aggregate performance of these grains. There is also a leveraged
version of this fund. The iPath Dow Jones
UBS Grains ETN is a US listed fund tracking the same index. If subscribers
have additional suggestions, I would be happy to add them.