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iShares Global Agriculture Index ETF (COW $73.69)
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Teucrium Agricultural Strategy No K-1 ETF (TILL $18.34)
Q: If the price of oil and natural gas are higher for longer will basic agricultural commodities increase in price? I have found two ETFs, USCI and TILL that speak to this theme. Can you comment on them or suggest any others that might be better? Anything available in CAD? Thank-you.
5i Research Answer:
COW is an ag-focused ETF in Canada that has a long history. Prices will likely increase across many commodities. Prices will be higher for buyers, but note input costs will also increase on some, so it may not result in huge margin increases. Some buyers are price sensitive so overall demand is not assured either. But the closing of the Hormuz Strait will boost prices, as some customers will want to secure supply and pay more in case the Strait is closed for some time. USCI is a closed-end fund with multiple commodity exposure. It has done very well and looks good. TILL has done less well, but is also far too small at $25M for a recommendation.