5 Best Agriculture ETFs To Buy

4. Invesco Food & Beverage ETF (NYSE:PBJ)

5-Year Share Price Performance as of March 29: 46.66%

Ranking 4th on our list of the best agriculture ETFs is Invesco Food & Beverage ETF (NYSE:PBJ). Invesco Food & Beverage ETF (NYSE:PBJ) tracks the Dynamic Food & Beverage Intellidex Index, with a focus on capital appreciation. It consists of 30 US food and beverage companies engaged in the manufacture, sale, or distribution of food and beverage products, agricultural products, and new food technology development. As of March 28, 2024, the fund’s expense ratio came in at 0.57%. Invesco Food & Beverage ETF (NYSE:PBJ) was launched on June 23, 2005. 

The Kroger Co. (NYSE:KR) is one of the top holdings of Invesco Food & Beverage ETF (NYSE:PBJ). On March 14, The Kroger Co. (NYSE:KR) declared a $0.29 per share quarterly dividend, in line with previous. The dividend is payable on June 1, to shareholders on record as of May 15. 

According to Insider Monkey’s fourth quarter database, 45 hedge funds were bullish on The Kroger Co. (NYSE:KR), compared to 41 funds in the prior quarter. 

In its fourth quarter 2023 investor letter, Oakmark Global Fund stated the following regarding The Kroger Co. (NYSE:KR):

“The Kroger Co. (NYSE:KR) (U.S.) is the second-largest grocery retailer in America, behind only Walmart. Although the grocery industry is highly competitive, Kroger’s scale advantages allow it to offer a more compelling value proposition than smaller peers and earn higher returns on capital. In recent years, the market has assigned Kroger a lower multiple due to concerns that e-commerce would disrupt traditional brick-and-mortar grocery businesses. However, we believe Kroger’s performance through the pandemic highlighted that its store footprint, distribution infrastructure, technology investments and strong brand all position the company well for a world with higher online grocery adoption. The stock trades for just 10x our estimate of next year’s EPS, which we believe is attractive given Kroger’s competitive positioning and earnings growth outlook. The pending merger with Albertsons could accelerate the company’s earnings growth and produce additional scale advantages. If the merger is not approved, the company will have the capacity to return over 25% of its market cap to shareholders.”