What Are Sugar ETFs?
ETFs represent an efficient and low maintenance way for investors to gain exposure to sugar prices. While many broad-based agricultural commodity ETPs, such as DBA, offer exposure to sugar prices, there are pure play options as well. For U.S. investors, the iPath Dow Jones-UBS Sugar ETN (SGG) is linked to an index comprised of Sugar No. 11 futures. As such, it should be understood that SGG will not necessarily reflect changes in spot sugar. Also, be aware that SGG is an ETN, meaning that there will be no tracking error but that the credit risk of the issuing bank must be considered.
International investors have more options available, including leveraged and inverse sugar ETFs.
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