33

Grain Futures: The Easy Way To Profit!

Embed Size (px)

Citation preview

Page 7: Grain Futures: The Easy Way To Profit!

Of course, you could always go straight to the futures market to trade grain futures

firsthand.But unless you’re well versed in futures lingo and the way these markets

trade, I’d steer clear of them.

Page 8: Grain Futures: The Easy Way To Profit!

Instead, look to agriculture based exchange traded funds (ETFs). There are a number of great ETFs that track grain futures, and they trade just like stocks.

What’s more, there’s none of the complicated order entry and excess leverage like you’ll find in futures.

Page 10: Grain Futures: The Easy Way To Profit!

To qualify for the list, the product must meet two criteria:

1. A reasonable expense ratio.

2. Sufficient intraday liquidity, which makes entering/exiting a trade easier.

Page 13: Grain Futures: The Easy Way To Profit!

As you may have guessed, there are a number of different ways to play the

agriculture industry through commodity ETFs. You can trade ETFs that focus on

the industry as a whole, or you can narrow down to products that are a pure

play on an individual grain futures market.

Page 15: Grain Futures: The Easy Way To Profit!

Corn

Teucrium Corn Fund $CORN:Here’s the tried-and-true product for trading corn via

an ETF. $CORN has adequate liquidity and an expense ratio of 2.9%.

Page 16: Grain Futures: The Easy Way To Profit!

While the expense ratio is a bit higher than I prefer, $CORN is the only pure play commodity ETF for corn futures. If you’re looking for a simple way to play the corn

market, this is it!

Page 17: Grain Futures: The Easy Way To Profit!

Soybeans

Teucrium Soybean Fund $SOYB: Here’s another grain-focused product from

theTeucrium family of ETFs. $SOYB gives investors a hassle free way to play the

soybean market.

Page 19: Grain Futures: The Easy Way To Profit!

Wheat

Teucrium Wheat Fund $WEAT:Here’s the last of the major grain commodity ETFs. $WEAT has a rather high expense ratio of 3.7%, which would usually deter me from

trading it.

Page 20: Grain Futures: The Easy Way To Profit!

But since it’s the only wheat focused ETF the market currently has to offer, I have to

make an exception. If there’s an opportunity to profit in the wheat market,

$WEAT is the only way to play it via commodity ETFs.

Page 21: Grain Futures: The Easy Way To Profit!

As you can see, TeucriumTrading LLC is the issuer of all the above funds. Visit their website and you’ll find additional

information on their products along with valuable USDA grain reports.

Page 23: Grain Futures: The Easy Way To Profit!

• Powershares DB Agriculture Fund $DBA: If you’re looking to get long the

entire Ag industry in one simple step- this is the best way to do it.

Page 24: Grain Futures: The Easy Way To Profit!

$DBA is an unequally weighted portfolio of Ag commodities which includes cattle,

cocoa, coffee, corn, cotton, lean hogs, live cattle, soybeans, sugar, and wheat. The fund has good liquidity and an expense

ratio of 0.85%, which makes it appropriate for longer-term investing purposes.

Page 25: Grain Futures: The Easy Way To Profit!

• iPath Bloomberg Grains Total Return $JJG: Here’s a great way to hold the three major grain commodities in one

easy step. $JJG holds an unequal weighting in corn, soybeans, and wheat.

Page 27: Grain Futures: The Easy Way To Profit!

• Elements Rogers Intl. Commodity Index $RJA: This one is a doozy. $RJA

holds just about every Ag commodity you can think of including milk, rubber, rapeseed, oats, and milling wheat.

Page 28: Grain Futures: The Easy Way To Profit!

I’m not sure why any investor would be concerned with such trivial commodities, but this is the way to play them if you are. The fund has a low expense ratio of 0.75%

along with sufficient liquidity.

Page 29: Grain Futures: The Easy Way To Profit!

There you have it…

We just covered the best Ag commodity ETFs the market has to offer. As you may

be aware, there are other Ag focused ETFs out there, but they’re not included on this list due to low liquidity and/or a

high expense ratio.