5 Best Agriculture ETFs To Buy

In this article, we discuss 5 best agriculture ETFs to buy. If you want to read our discussion in the agriculture industry, head directly to 12 Best Agriculture ETFs To Buy. 

5. iShares MSCI Global Agriculture Producers ETF (NYSE:VEGI)

5-Year Share Price Performance as of August 1: 42.84%

iShares MSCI Global Agriculture Producers ETF (NYSE:VEGI) aims to replicate the performance of the MSCI ACWI Select Agriculture Producers Investable Market Index, which consists of global companies primarily involved in the agriculture industry. The ETF was founded on January 31, 2012, and as of July 31, 2023, it holds net assets exceeding $227 million. Its portfolio includes 158 stocks, with a 30-day SEC yield of 2.10% and an expense ratio of 0.39%. iShares MSCI Global Agriculture Producers ETF (NYSE:VEGI) is one of the best agriculture ETFs to buy. 

Corteva, Inc. (NYSE:CTVA) is the largest holding of the iShares MSCI Global Agriculture Producers ETF (NYSE:VEGI). Corteva, Inc. (NYSE:CTVA) operates in the agriculture industry. Its Seed segment develops and supplies advanced germplasm and traits to improve yield, resistance to weather, disease, and insects. Corteva’s Crop Protection segment provides products that protect against weeds, insects, and diseases, as well as enhance crop health through nitrogen management and seed-applied technologies. On July 21, Corteva, Inc. (NYSE:CTVA) declared a $0.16 per share quarterly dividend, a 6.7% increase from its prior dividend of $0.15. The dividend is payable on September 15, to shareholders of record as of September 1. 

According to Insider Monkey’s first quarter database, Ken Griffin’s Citadel Investment Group is the largest stakeholder of Corteva, Inc. (NYSE:CTVA), with 4.43 million shares worth $267.2 million. 

Here is what Aristotle Capital Management Value Equity has to say about Corteva, Inc. (NYSE:CTVA) in its Q1 2022 investor letter:

“Corteva Agriscience, one of the world’s largest seed and crop protection companies, was a primary contributor for the quarter. Due to its respected brand and the value-added benefits of its patented seeds and crop protection solutions for farmers, Corteva has been able to more than offset input cost inflation with sustainable price increases. In addition, the company’s ongoing mix shift to higher-margin, premium products, a catalyst we previously identified, is aiding both sales and profit growth. Shares were likely also buoyed by the rise in crop prices. Market participants, perhaps eager to chase short-term trends, poured into the sector. At Aristotle Capital, we look past such gyrations and, as long-term investors, do not attempt to predict short-term changes in commodity prices. We remain excited about what we view to be high-quality characteristics and fundamental improvements that permeate Corteva’s business, not the least of which include its pricing power.”

4. Teucrium Agricultural Fund (NYSE:TAGS)

5-Year Share Price Performance as of August 1: 47.63%

Teucrium Agricultural Fund (NYSE:TAGS) offers investors access to the price movements of corn, wheat, soybeans, and sugar futures through a brokerage account. Given the growing demand for agricultural commodities prompted by global population growth and the expanding middle class, this ETF provides an opportunity for exposure to this lucrative market. Teucrium Agricultural Fund (NYSE:TAGS) was launched on March 28, 2012, and the ETF has total net assets of $23.5 million and an expense ratio of 0.13% as of August 1, 2023. Teucrium Agricultural Fund (NYSE:TAGS) is one of the best agriculture ETFs to invest in. 

3. Teucrium Soybean Fund (NYSE:SOYB)

5-Year Share Price Performance as of August 1: 65.89%

Teucrium Soybean Fund (NYSE:SOYB) enables investors to easily access the price movements of soybean futures. Soybeans have notable importance in the global economy, serving as feed, oils, wood substitutes, foam, ink, and crayons. Teucrium Soybean Fund (NYSE:SOYB) was established on September 19, 2011, and has total net assets of $35.18 million as of August 1, 2023. It offers an expense ratio of 0.22%. Teucrium Soybean Fund (NYSE:SOYB) is one of the best agriculture ETFs to buy based on 5-year performance to date. 

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)

1. Teucrium Sugar Fund (NYSE:CANE)

5-Year Share Price Performance as of August 1: 92.69%

Teucrium Sugar Fund (NYSE:CANE) offers investors a reliable way to participate in the price of sugar futures. Sugar is a crucial agricultural commodity with multiple applications in the global economy, including sweeteners, fuel (ethanol), bio-material, ink, cement, glue, and alcohol. The ETF was introduced on September 19, 2011, and has total net assets of $23.7 million as of August 1, 2023. It has an expense ratio of 0.29%. Teucrium Sugar Fund (NYSE:CANE)’s 5-year share price performance as of August 1 came in at roughly 93%, making it one of the best agriculture ETFs to buy. 

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