Agriculture ETFs Take Different Paths In 2012

For investors looking to achieve exposure to agricultural commodities through ETPs, two of the most popular options on the market are the PowerShares DB Agriculture Fund (DBA) and iPath Dow Jones-UBS Agriculture ETN (JJA). On the surface, these two products may seem to be similar; both offer broad-based exposure to ags using futures contracts through the exchange-traded structure. But a look at the year-to-date performance figures indicates that they are far from identical; DBA is up about 4% so far in 2012, while JJA has added 19%–a massive gap between two generally similar products. Under The Hood So what’s to blame for the significant delta between the two agriculture ETPs? It’s all a matter of the underlying portfolios, which have very different allocations to a number of key commodities. DBA casts a considerably wider net than JJA, including about 11 different futures contracts compared to only about seven for JJA. [...] Click here to read the original article on ETFdb.com. Related Posts: Ultimate Guide To Agricultural ETFs: Agriculture ETF Investing 101 The Perfect Storm For The Corn ETF? Understanding The Corn ETF’s Huge Premium Inside The Corn ETF (CORN) Livestock Funds ‘Slaughtering’ Other Agricultural Commodity ETFs