Dec 13

The major reason why you should invest in a Wheat ETF is, wheat is one of the most popular cereal commodity grown into the Global. It is only comparable to rice and maize in its quantity and more than 6000000 tons are harvested every year .

The only wheat only ETF that I know is Teucrium Wheat Fund. This ETF is the only one that tracks the price of wheat. The other option of investing in a Wheat ETF is buying ETFs that have wheat plus other commodities in their basket. These include some of the big names in agricultural commodities etfs:-

  • ADZ – PowerShares DB Agriculture Short ETN
  • AGA – PowerShares DB Agriculture Double Short ETN
  • AGF – PowerShares DB Agriculture Long ETN
  • BARN – Global X Farming ETF
  • CRBA – Jefferies TR/J CRB Global Agriculture Equity Index ETF
  • DAD – PowerShares DB Agirculture Double Short ETF
  • DAG – PowerShares DB Agriculture Double Long

written by Constantine Njeru \\ tags: , , , , , , , , , , , ,

Dec 10

If you are looking into investing in an agricultural commodity ETF  you can select form the following list of agricultural etfs related to agriculture. These agricultural ETFs tend to reflect the performance of the agricultural sector. Some of the ETFs are long while others are short.

ADZ – PowerShares DB Agriculture Short ETN

AGA – PowerShares DB Agriculture Double Short ETN

AGF – PowerShares DB Agriculture Long ETN

BARN – Global X Farming ETF

COWL – Direxion Daily Agribusiness Bull 3x Shares ETF

COWS – Direxion Daily Agribusiness Bear 3x Shares ETF

CRBA – Jefferies TR/J CRB Global Agriculture Equity Index ETF

DAD – PowerShares DB Agirculture Double Short ETF

DAG – PowerShares DB Agriculture Double Long ETN

DBA – PowerShares DB Agriculture ETF

DIRT – iPath Pure Beta Agriculture ETN

MOO – Market Vectors Agribusiness ETF

BAL – iPath Dow Jones AIG Cotton TR Sub-Index ETN

CTNN – iPath Pure Beta Cotton ETN

 

CAFÉ – iPath Pure Beta Coffee ETN

JO – iPath DJ-UBS Coffee Total Return Sub-Index ETN

NIB – iPath DJ-UBS Cocoa Total Return Sub-Index ETN

CHOC – iPath Pure Beta Cocoa ETN

GRU – ELEMENTS MLCX Grains Index Total Return ETN

JJG – iPath DJ-UBS Grains Total Return Sub-Index ETN

WEET – iPath Pure Beta Grains ETN

WEAT – Teucrium Wheat Fund

The initials on the left are symbols of agricultural ETF / ETN

written by Constantine Njeru \\ tags: , , , , , , , , , , , , , , ,

Nov 23

One of the reason why investors have flocked to put their money into ETFs is their low cost and tax efficiency. ETF cost is low compared to mutual funds and hedge funds.

Understanding Cost of ETF

ETFs do not charge redemption fees, and typically have lower expense ratios than mutual funds. However, every time an ETF investor buys or sells an ETF, he or she pays a brokerage commission. For frequent traders, these fees can quickly surpass the lower annual costs that ETFs usually charge.

As you can see, The lower fees advertised on ETFs can be a benefit, but they can also be a trap. Due to your frequent trading you might end up paying more.

written by Constantine Njeru \\ tags: , , ,

Nov 11

I was asking why a broker would offer a no fee ETF and I found the answer from Investopedia,

A no-fee ETF is used as an incentive to get an investor to move his or her account to a particular broker, with the broker forgoing a transaction fee in order to gain access to the investor’s assets. This in turn allows the broker to provide other financial product and services to the investor.

List of No Fee ETFs

No fee ETF or commission-free ETFs are offered by brokers such as

Fidelity – have a selection of 30  Ishares no fee ETFs

Firsttrade – 10 No fees etf

Schwab -13 schwab commission free etf

Scotrade – 15 no fees etf

TD Ameritrade – a selection of over 100 no fee etfs

Vanguard – 64 vanguard no fee etfs

Source of data, No Load Fund

As we wrote above there is nothing like “No Fee” it is all a marketing ploy. In exchange for allowing investors to trade ETF for no fee, the brokers expect you to sign up and purchase additional services.

written by Constantine Njeru \\ tags: , , , , , , , ,

Nov 07

Australian ETFs and New Zealand Dollar ETFs are a good fit for investors who are interested in commodity-tied currencies of Australia, New Zealand.

There is a direct correlation between commodities and currency, the higher commodity prices rise the higher a currency rises. This ahs been the case with Australian and New Zealand dollar: The currency have been rising on the global rise in commodities.

There are Australian ETFs and New Zealand Dollar ETFs that have been created to take advantage of this currency trends.

FXA – CurrencyShares Australian Dollar Trust

BNZ – WisdomTree Dreyfus New Zealand Dollar ETF

ADE – ELEMENTS Australian Dollar / USD Exchange Rate ETN

 

Australian and New Zealand Dollar ETFs

written by Constantine Njeru \\ tags: , , , , , , , , , ,

Mar 05

Soros Fund Management’s 13F filing reveals that the money management firm continues to bet on gold, even while calling the metal “the ultimate bubble” for the past year.

At the end of 2010, the fund held $774 million worth of ETFs that owned gold, about the same as the previous quarter’s gold holdings.

In Q3, the fund reduced its position on some gold mining stocks, but Soros held onto its 12.9 million shares of NovaGold Resources in Q4, the same amount owned at the end of the previous quarter.

written by Constantine Njeru \\ tags: , , , , , , , , , , , , , , ,

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