2024-04-22 10:20:22 ET
Summary
- The Invesco DB Agriculture Fund ETF has outperformed the S&P 500 in recent years, offering an excellent alternative to diversify your portfolio.
- The combination of high cash investment yields and rising prices for cocoa, coffee, and livestock futures has been very profitable for investors since early 2023.
- DBA's unique design may continue to both compound and stabilize gains, with effectively a dual position held in ag commodity futures and U.S. Treasury investments.
- Climate changes negatively affecting ag commodity supply globally, plus the necessity for dollar devaluations (potential future inflation) argue in favor of ownership.
A smart and successful way to diversify your portfolio over the last few years has been to own a basket of commodities through the Invesco DB Agriculture Fund ETF ( DBA ). Believe it or not, it actually has been "outperforming" investment returns in the red-hot S&P 500 equity index, America's leading blue-chip construction with an oversized weighting in Big Tech winners....
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DBA: A Simple Diversified Commodity ETF Beating The S&P 500