The top five holdings in this ETF are: Invesco Shrt-Trm Inv Gov&Agcy Instl (AGPXX, 24.11% of net assets); Coffee C Future Sept 21 (KCU21, 7.43%); Corn Sept21 (CU1, 6.82%); Sugar No. 11 Futures Sept21 (SBV1, 6.71%); and Soybean Nov21 (SX1, 6.66%).
Invesco DB Agriculture Fund (DBA)
From Nate’s Notes
As you can see in its chart, DBA and has been powering higher into new multi-year high territory over the past several weeks, and while the trend could always come to an end on Monday, given how things are playing out around the world, I continue to believe that we are likely still in the fairly early stages of what could end up being a very substantial and prolonged move to the upside for commodities in the quarters (and perhaps even years) ahead!
And, while I know it can be emotionally difficult to put money to work in stocks (or, in this case, ETFs) “after they are already up so much,” I want to remind you that not only does strength tend to beget strength when it comes to trends in prices, but there are also a lot of fundamental reasons to believe that commodity prices are more likely than not to continue heading higher as well.
If you are still underweighted in this commodity-based ETF, you are encouraged to make sure it is on your list of things to buy first this month (but do be sure to make the purchases part of a longer-term game plan that has you scaling-in to your positions over time rather than doing it all in one fell swoop!).
DBA is a buy under $22.
Nate Pile, Nate’s Notes, NotWallStreet.com, 707-433-7903, February 11, 2022