5 Best Agriculture ETFs To Buy

2. iShares Global Agriculture Index ETF (TSE:COW.TO)

5-Year Share Price Performance as of August 1: 66.08%

iShares Global Agriculture Index ETF (TSE:COW.TO)’s goal is to imitate the Manulife Investment Management Global Agriculture Index’s performance after accounting for expenses. The ETF provides exposure to companies engaged in the production of agricultural products, fertilizers and agricultural chemicals, farm machinery, and packaged foods and meats. iShares Global Agriculture Index ETF (TSE:COW.TO) was launched on December 19, 2007. As of July 31, 2023, the fund offers a distribution yield of 2.13%, a net expense ratio of 0.71%, and holds a total of 36 stocks in its portfolio.

One of iShares Global Agriculture Index ETF (TSE:COW.TO)’s top holdings is Bunge Limited (NYSE:BG). It is an agribusiness and food company with its operations divided into four segments – Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. On May 11, Bunge Limited (NYSE:BG) declared a $0.6625 per share quarterly dividend, a 6% increase from its prior dividend of $0.6250. The dividend is payable on September 1, to shareholders of record on August 18. 

According to Insider Monkey’s first quarter database, 37 hedge funds were bullish on Bunge Limited (NYSE:BG), compared to 50 funds in the prior quarter. Anand Parekh’s Alyeska Investment Group is the leading stakeholder of the company, with 834,866 shares worth approximately $80 million. 

Here is what Old West Investment Management has to say about Bunge Limited (NYSE:BG) in its Q1 2022 investor letter:

“Bunge (pronounced BUN-GEE) Ltd (NYSE:BG) is one of the biggest agribusinesses and food companies in the world. There are four worldwide companies that dominate the sector, the others being Archer-Daniels-Midland Cargill, and Dreyfuss. One of our favorite ways to screen for new ideas is following insider buying. When I saw the Form 4 filed by new Bunge CEO Greg Heckman, his purchase of $9 million of BG stock intrigued me. My initial thought was the company gave him the stock as a signing bonus. I contacted BG Investor Relations and asked whether it was a signing bonus or did Heckman actually write a check for $9 million. IR assured me it was his own hard-earned money that he invested in the company he was about to run.

Heckman was a long time executive at Conagra Foods who obviously sensed opportunity at BG. One of his first moves as CEO was to move the company’s HQ from New York to St. Louis, right in the middle of America’s breadbasket. BG had been plagued for years with poor decisions by underperforming management. Heckman’s decision to move to St. Louis was indicative of a no-nonsense style and he would commence cutting expenses and selling non-core assets…” (Click here to see the full text)