As I've been stating there are so many ETFs (and ETNs which are Exchange Traded Notes) I simply cannot keep up. But since these have to do with agriculture,
this series of four notes caught my eye. They are basically Ultralong, long, Ultrashort, and short vehicles tracking the "Deutsche Bank Optimum Yield Agriculture Index". Now I have no idea what is in that index and my first attempts to google it did not yield anything but if its a basket of soft commodities I'd probably be interested in the Ultralong stake either as a replacement or complement to
Powershares DB Agriculture ETF (DBA) which is based on the " Deutsche Bank Liquid Commodity Index – Optimum Yield Agriculture Excess Return™" - for all I know it's the same thing - but the latter is a fancy way to say
corn, wheat, soybeans, and sugar.
Or for traders... when Barron's puts out its next "Commodities is Dead" issue you could quickly rush into the Ultrashort version...
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NYSE Euronext (NYX) today announced that four new Exchange Traded Notes (ETNs) listed and began trading on NYSE Arca.
These ETNs are designed to track the Short and Leveraged Performance of the Deutsche Bank Optimum Yield Agriculture TM Index. The following Deutsche Bank ETNs listed and traded on NYSE Arca under the following ticker symbols:
| DB Agriculture Double Short ETN (NYSE Arca: AGA) |
| DB Agriculture Double Long ETN (NYSE Arca:DAG) |
| DB Agriculture Short ETN (NYSE Arca: ADZ) |
| DB Agriculture Long ETN (NYSE Arca: AGF) |
Long Powershares DB Agriculture Fund in fund; no personal position
6 comments:
You may also want to take a look at the new UBS ETNs
http://keyinvest.ibb.ubs.com/e-tracs/index.shtml
UBS CMCI Commodity Index UCI
UBS CMCI Agriculture Index UAG
UBS CMCI Indu Metals Index UBM
UBS CMCI Food Index FUD
UBS CMCI Energy Index UBN
UBS CMCI Silver Index USV
UBS CMCI Gold Index UBG
UBS CMCI Livestock Index UBC
They are set up the same way UBS calculates the UBS Bloomberg Constant Maturity Commodity Index, which should reduce Contago/Backwardation impact.
Also, spreads look pretty good.
Cheers
Mark -
Be careful - I bought the DB Gold Double Long (DGP) through Fidelity not long ago.
Because of the way DB clears this note, the transaction fee was $75 compared to the normal fee of $8 that Fidelity charges for tradding the DBA.
I'm guessing the same may apply to these Agricultural notes.
DoubleD
Yes, its starting to get to be too much out there... too many of these vehicles
although an ultrashort livestock would be good.
I am very curious what the heck is in FUD? Food Index?
FUD
How interesting
Its got everything from orange juice to coffee to cocao to cattle to corn
it is funny - I think cattle and hogs are going to be a great short (they are down massive YTD) for a few months and then its going to be a great long. Farmers are slaughtering these things now since they are getting too expensive to feed - creating a near term glut and keeping meat prices below where they should be. And then it's going to create a (drumroll) shortage later in the year and into 2009. THats when you see meat begin to skyrocket.
But inflation will somewhat fall by government reports as SPAM becomes the #1 meat in America.
Yee haw
i see some light at the end of the tunnel.
seeing that meat is becoming very expensive in the future as the feed is very high, the solution for all the food shortage/ethanol story/oil would be simply a vegetarian culture. then there would be enough food / ethanol for everybody. it sounds and also is like greenpeace dreams (whalemeat anybody?) and not so great for my fertiliser investment, and its not gonna happen, coz there are still enough people who will be able to afford meat anyway.
POT has an amazing volume today, seems like funds are selling out.
what are the best options for investing in sinking/rising meat prices?
There are some livestock ETFs - hogs cattles
their pricing is staying subdued now as they get slaughtered. I will have to keep an eye on them because the slaughter now will lead to a potential shortage later (how long and at what point I am not sure) so we might look to go long then. I have not really studied this group other than the producers like Smithfield Food and Pilgrims Pride etc. Due to feed costs those stocks have been in bad shape, but they are now cutting production leading to... well more shortages ahead. And higher prices for consumers.
Thankfully the govt reports wont show them, so we dont have to deal with the pain :)
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