Sugar is a consumable that is exported all over the world. Although consumer trends shift from health conscious alternatives and vice versa, the market has remained constant as manufacturers use the product in commercial food and beverage production. Rather than investing directly in this agricultural product, a good alternative and indirect investment in sugar through exchange-traded futures of companies involved in some aspect of the sugar industry provides a less risky investment strategy. Which sugar ETF is the best option for you? That depends on your current portfolio and the type of diversification you want to add to your existing collection.
How to choose the right Sugar EFT
According to Investopedia, since the first SPDRs were established in 1993, EFT index tracking has gained popularity among investors. With so many available, choosing can seem difficult. The first step is to compare the recommendations that fit your investment style and preferences for benchmarking indices. Consider the fund’s holdings, total asset values, and past performance in your analysis. If the goal is to find a profitable ETF to include in your portfolio, if you are looking for a low-cost strategy to build the optimal portfolio, and if you value efficiency, you are in the right place. We have consulted the most respected sources to identify the best sugar ETFs for 2020. They will provide you with some options for you to discuss with your financial advisor to choose the right sugar ETF for your financial investment needs.
Power rankings for the basic sugar product
EFTBF.com has analyzed the power rankings of sugar in the commodities market. Explain that the rankings compare sugar to all other commodities traded in the United States markets by following a set of investment-oriented metrics. These include cash flows for 3-month intervals, average AUM, ETF expenses, along with average dividend yields. Results include calculations based on sugar only with all other asset classes and inverse ETFs excluded. It provides you with an idea of the trends within the sugar industry. Sugar is 18th in three-month cash flow, 10th in three-month average return, and 19th in aggregate AUM. for the average expense ratio. Here are three recommended sugar ETFs for your consideration with the top two US sugar ETFs.
Teucrium Sugar ETF
US News reports that Tecruium Sugar is among the best sugar ETFs available for 2020. Daily changes in the NAV of Teucrium shares are reflected as the sugar market moves. Future delivery is monitored and measured by following a weighted average of prices at the close of settlements for three sugar futures contracts. These contracts are traded on ICE Futures US. The investment objective of the fund is to invest in benchmark component futures contacts under normal market conditions. Management uses the total amount of the fund’s assets to trade sugar futures contracts and make investments in cash and cash equivalents. The attractiveness of your ETF to investors is that it offers exposure to investment in sugar companies indirectly. Investments are less volatile than direct investments in shares of companies involved in the sugar industry.
Wisdom Tree Sugar ETF
Investing.com highlights the Wisdom Tree Suger ETF as a recommendation for those looking to diversify with exposure to sugar. Wisdom Tree is classified in the financial sector in miscellaneous financial services. Wisdom Tree is a share-based ETF on the UK market. ETFS is the issuer of the notes. The Wisdom Tree ETF is included in its general class merchandise. Bloomberg Sugar TR is underlying. The fund’s core business deals with short and leveraged commodity contracts and classic and longer-term commodity contracts. The company facilitates the trading of Wisdom Tree Sugar ETF investments that cover commodities including, but not limited to, the sugar market only, fixed income and stocks traded on exchanges around the world. This ETF may be one that you want to consider if you want an asset allocation across a wide range of industries.
Bloomberg iPath Series B ETN / ETF Sugar Subindex Total Return
According to Zacks, SGG is a publicly traded agricultural fund that is listed on the New York Stock Exchange and focuses on sugar. The expense ratio …