Commodity Stocks Biography
The global soybean market is currently dominated by three countries; the U.S., Brazil and Argentina. Of these three, the U.S. is the largest exporter, putting out just over half of the world’s exports, followed by a 35% share for Brazil.
Currently, China is the destination for the vast majority of these exports, helping push U.S. exports of the product up by close to 81% over the past 15 year period. Given the surging demand for the crop and the limited supply of soybeans outside a few nations, soybeans could continue to be a major growth market for the U.S. for quite some time (read Top Commodity ETFs In This Uncertain Market).
For investors looking to play this product in ETF form, there is currently one option, the Teucrium Soybeans ETF (SOYB). This relatively new fund hasn’t really caught on with investors as of yet, as it just has $2.4M in AUM and trades less than 10,000 shares a day on average.
Part of this could be due to the relatively high fees as the ETF charges investors 1.53% a year in expenses. However, another issue could be the relatively unknown quantity that is soybeans, the product doesn’t get the same amount of press as other more well-known commodities in the agricultural space.
This is somewhat surprising as returns haven’t been too bad in SOYB, because much like CORN this fund spreads out exposure in order to hopefully mitigate contango problems. Over the fund’s short lifetime (it debuted in September of 2011), it has added about 1.5%, while it has gained about 11% in the past one month period.
The global soybean market is currently dominated by three countries; the U.S., Brazil and Argentina. Of these three, the U.S. is the largest exporter, putting out just over half of the world’s exports, followed by a 35% share for Brazil.
Currently, China is the destination for the vast majority of these exports, helping push U.S. exports of the product up by close to 81% over the past 15 year period. Given the surging demand for the crop and the limited supply of soybeans outside a few nations, soybeans could continue to be a major growth market for the U.S. for quite some time (read Top Commodity ETFs In This Uncertain Market).
For investors looking to play this product in ETF form, there is currently one option, the Teucrium Soybeans ETF (SOYB). This relatively new fund hasn’t really caught on with investors as of yet, as it just has $2.4M in AUM and trades less than 10,000 shares a day on average.
Part of this could be due to the relatively high fees as the ETF charges investors 1.53% a year in expenses. However, another issue could be the relatively unknown quantity that is soybeans, the product doesn’t get the same amount of press as other more well-known commodities in the agricultural space.
This is somewhat surprising as returns haven’t been too bad in SOYB, because much like CORN this fund spreads out exposure in order to hopefully mitigate contango problems. Over the fund’s short lifetime (it debuted in September of 2011), it has added about 1.5%, while it has gained about 11% in the past one month period.
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