What Are Wheat ETFs?
While there are no U.S.-listed ETFs that offer pure play exposure to wheat, investors are able to gain exposure to this important agricultural commodity through more broad-based agricultural ETFs. Wheat is found in almost every basket commodity fund, and larger allocations to this resource can be achieved through investment in grains ETFs.
There are two options for U.S. investors: the iPath Dow Jones-UBS Grains Total Return ETN (JJG) and the ELEMENTS MLCX Grains Index ETN (GRU). While wheat futures make up a port of the related indexes, these products also offer exposure to corn and soybeans. Though JJG is significantly bigger in terms of AUM, both ETNs show impressive liquidity.
Investors should understand that these ETNs offer exposure not to spot commodity prices, but to futures-based investment strategies. Moreover, it should be noted that noth JJG and GRU are structures as exchange-traded notes, meaning they are subject to credit risk of the issuers.
Other Ways To Invest In Wheat
Wheat In The News
- A Deeper Look At Russia’s Commodity Industry
- Contango Report: Commodities Facing Uphill Curves
- Shorter Trading Days For Grain And Soy Traders
- How Ags Will React to Last Year’s Drought
- Contango Report: Precious Metals, Natural Gas, Wheat
- A Deeper Look At Brazil’s Commodity Industry
- The Best Agriculture ETFs of 2012
- Inside Citi’s 2013 Agriculture Outlook
- 3 Commodity ETFs To Be Thankful For This Year
- The Surging Demographic Trends Behind Grain Investing