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-   -   Are Agriculture ETFs good for 2011 and beyond? (http://forums.idiotstockinvestor.com/showthread.php?t=179)

idiotstockinvestor 02-28-2011 01:51 AM

Are Agriculture ETFs good for 2011 and beyond?
 
This article is interesting:

http://etfdb.com/2010/agriculture-et...ad-dba-vs-jja/

So basically an Agriculture ETF will be something that invests in futures of agricultural commodities.

Since I'm in Canada there are only two I'm aware of:

COW.TO (Claymore Agriculture ETF which says it follows the MFC Index). Has anyone heard of that Index because the only reference I've ever found to it was from their ETF?

ZCA.TO this is different because it invests in the futures of things like wheat, corn, soybean, coffee, sugar etc..

I think COW has done well and it's appealing even though I'm not sure how it quite works. I like how it had a recent dip in the charts but is heading back up.

ZCA is new, I believe it even started in February of this year and has to prove itself.

What concerns me about agriculture/commodity ETFs are that I don't understand these industries and haven't found any good/simple explanations of their investment risk/reward value in the past, now and in the future.

I'd like to know more about what cause the different commodities futures to rise and fall to get an idea of how stable an investment like this is.


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