Russian Food Import Ban Takes A Bite Out Of Agricultural ETFs [PowerShares DB Agriculture Fund]

iPath DJ-UBS Agriculture TR Sub-Index ETN (JJA)

The ETN looks to follow the Dow Jones-UBS Agriculture Subindex Total Return. The index looks to provide the returns that are available through an investment in the futures contracts on the agriculture sector of the commodity world.

Top constituents currently include corn, soybeans, sugar, coffee and wheat. The product charges 75 bps in fees. The product retreated 1.30% in the key trading session. JJA currently has a Zacks ETF Rank #5 (Strong Sell) with a Medium risk outlook.

iPath Dow Jones-UBS Livestock Subindex Total Return ETN (COW)

This note tracks the Dow Jones-UBS Livestock Subindex Total Return, which delivers returns through futures contracts on livestock commodities. The benchmark provides 60% exposure to live cattle and the remainder to lean hogs (read: Beef Up Your Portfolio with These Livestock ETFs).

The product charges 75 bps in fees per year and has amassed $46.8 million in its asset base. It trades in an average volume of about 30,000 shares a day, suggesting additional cost in the form of a wide bid/ask spread. The ETN has lost about 2.17% on August 7. COW currently has a Zacks ETF Rank #5 with a Medium risk outlook.

Dow Jones-UBS Softs Total Return Sub-Index ETN (JJS)

The note looks to track the Dow Jones-UBS Softs Subindex Total Return. This index looks to provide returns that are available through an investment in the futures contracts on the soft commodity sector.

Top components currently include sugar, coffee and cotton. This unpopular product charges 75 bps in fees. JJS was down 2.33% in the key trading session. JJS currently has a Zacks ETF Rank #5 with a Medium risk outlook.

Bottom Line 

To conclude, we would like to note that U.S. exports to Russia account for less than one percent of entire agricultural exports (per an assistant professor of agricultural economics at Colorado State University). This meager number suggests less turbulence in the horizon for agricultural ETFs though they should still be monitored if tensions continue to rise in this key region of the world.

This article is brought to you courtesy of Zacks.com

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