With the war in Ukraine continuing its horrible grind and with economic sanctions imposed on Russia by the United States and Europe including more and more of the global economy, I’ve been looking for ways to invest in higher commodity prices.
My steps have included buying oil and natural gas stocks back at the end of January and adding the iPath Bloomberg Commodity ETN (DJP) back on a few days ago on March 23.
That’s given me good exposure to trends pushing energy prices higher, but I also want to include more exposure to higher agricultural prices.
So I’m adding the iPath Series B Bloomberg Agriculture Total Return ETN (JJA) to my Jubak Picks Portfolio. The ETN traded at $27.59 at the close on March 25. I’m setting a target price $34.
The ETN, similar in structure to an ETF, invests in futures contracts for corn, soybeans, wheat, coffee, cotton and other agricultural commodities. Shares were up 24% for 2022 to date as of the close on March 24. The expense ratio is 0.45%, which is low for this ETF sector.
One thing I like about this ETN is that because of the ETN structure, investors don’t receive a K-1 tax report with the additional complications that poses for investors not familiar with this kind of income-pass-through accounting.
I own MOO (AKA VanEck Vectors Agribusiness ETF) in my Perfect 5 ETF Portfolio over on my subscription site JubakAM.Com. It’s up 16.22% since I bought it n August 23, 2012. I owns some stocks far down the commodities food chain like Tyson that will get hit my higher commodity prices as well as some like Deere and will eventually benefit if farmers get more for their crops. In buying JJA I was looking to get direct commodity exposure to wheat and corn that I don’t get with MOO.
I’m thinking MOO might be a good entry into the farming sector. Who can resist the ticker?