ETF Spotlight: Powershares DB Agriculture
Tom Lydon submits:
ETF Spotlight on PowerShares DB Agriculture Fund (DBA), part of an ongoing series. Assets: $3.16 billion Objective: The PowerShares DB Agriculture Fund tries to reflect the performance of the Diversified Agriculture Index Excess Return, which is comprised of futures contracts on the most liquid and widely tracked agriculture commodities. Holdings: Cattle 4.68%, Cocoa 11.23%, Coffee 12.40%, Corn 13.67%, Cotton $2 2.85%, Lean Hogs 8.16%, Live Cattle 12.26%, Soybeans 13.06%, Sugar #11 11.60%, Wheat 4.66% and Wheat 5.41%.
What You Should Know
- DBA has an expense ratio of 0.85%.
- The fund tracks contracts with expiration dates as far out as 13 months that stand to maximize gains or minimize losses posed by the implied roll yield, according to Morningstar analysts.
- The sub-sector has posted “standout returns, as demand for foodstuffs and biofuel inputs have handily outstripped supply,” the analysts added. “Increasing agricultural commodity prices have driven investor interest in pure-play agricultural