Opinions
Terry Shaunessy
PowerShare DB Agriculture E.T.F.
DBA-N
DON'T BUY
Jul 22, 2014
$26.330
Stock price when the opinion was issued
E.T.F.'s
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DON'T BUY
Does like this in the agriculture sector. Tracks a basket of different agricultural products but in a 6 to 12 month timeframe this is not going to be an exceptional place to be. There are a lot of pricing related issues that are problematic. Longer term, 3 to 5 years, it is a very good place to be.
E.T.F.'s
TOP PICK
A volatile chart given its volatile holdings of cocoa, sugar, soy beans, etc. and a big position in short-term US treasuries. Agriculture is seasonally strong now. Long-term, the human population keeps growing, which is a tailwind and shift to healthier diets and ESG investing. Buy this, then sell as a trade.
E.T.F.'s
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Are futures ETF’s suitable for RRSP holding? This one is not like an agricultural ETF that has a seed companies, etc. but this is straight futures. Anything this speculative doesn’t really belong in an RRSP. You are truly speculating with this one. Because of the resets on these futures based ETF’s, they don’t quite carry out what you think is going to happen. Very expensive from the point of MER, and the tracking error is extremely high. If you want to be in a futures market, do it directly, not through an ETF.