Best ETFs of the week: Metal, Agriculture and Brazilian Market ETFs

Agriculture ETFs on the rise following poor weather conditions in Europe and Russia

Last week was great for the commodities sector, while most of global indices ended the week in negative territory. Indeed, all the ETFs in this top track one or more commodities.

Agriculture ETFs are omnipresent with, in Europe, seven out of the ten best performing ETFs tracking agriculture products such as wheat, soybean oil, grains, coffee, corn, livestock and combinations as well, and four out of the ten in Americas. Another type of commodities is also present in the European top. Less famous than gold or silver, metals such as rhodium and tin had a great week as shown by ETF returns.

Two weeks ago, Commodities ETFs were part of the worst performers following an increase in inventory coupled with a decrease in demand that had severely decreased prices. However, this week commodities benefited from a generous technical rebound.

In Europe, ETF issuers focusing on commodities, like WisdomTree, are the winner of past week performance, with 9 out of 10 ETFs ranking in the top.

In Americas, the top 10 is also composed of four ETF that are exposed to the Brazilian Market and two exposed to the China market.

Top 10 ETFs of the Week: Agriculture ETFs and Metal ETFs

Europe

• WisdomTree Wheat: +13,28%
• Xtrackers Physical Rhodium: +11,85%
• WisdomTree Soybean Oil: +7,66%
• WisdomTree Grains: +7,16%
• WisdomTree Coffee: +7,14%
• WisdomTree Tin: +6,64%
• WisdomTree Lean Hogs: +6,62%
• WisdomTree Longer Dated Agriculture: +6,35%
• WisdomTree Agriculture: +6,22%
• WisdomTree Corn: +5,63%

Americas

• Teucrium Wheat Fund: +10,55%
• Teucrium CORN Fund: +5,58%
• Teucrium Agricultural Fund: +5,52%
• Loncar China BioPharma ETF: +4,60%
• iShares Indice Carbono Eficiente (ICO2) Brasil ETF : +4,28%
• Teucrium Soybean Fund: +4,24%
• It Now IMAT ETF: +4,21%
• iShares BM&FBOVESPA Small Cap ETF: +4,11%
• Global X China Biotech Innovation ETF: +4,11%
• It Now IBOVESPA ETF: 4,10%

The prices of agricultural commodities have risen last week, largely due to some bad weather conditions in Europe and Russia. Investors have anticipated smaller harvest for the coming months, especially for wheat.

The recent hot and dry weather in several Russian regions have severely affected wheat yields. Grains become too dry resulting in lower weight and therefore negatively impacting the harvest. A smaller harvest reduces inventory and increase prices.

In Europe, the second-best performing ETF is Xtrackers Physical Rhodium with + 11.85% return over the week. The price of industrial metals, like tin, also increased last week. The main reason is an anticipation of an increase in demand for industrial metals for the rest of the year 2021.

Indeed, the general economic improvement and the large number of vehicles sold this year have led to a strong increase in demand for metals pushing prices up. However, the recent spread of the Covid-19 Delta variant starting to negatively impact the global economic and may disrupt the future demand.

In Americas, the four ETFs exposed to the Brazilian market are the iShares Indice Carbono Eficiente (ICO2) Brasil ETF; It Now IMAT ETF; It Now IBOVESPA ETF; iShares BM&FBOVESPA Small Cap ETF. The three first are all exposed to Large-Cap Brazilian Equities, with the first one focusing on compagnies that demonstrate their commitments on the climate change agenda and anticipate actions of how they are driving actions for a low carbon economy transition. The last one, iShares BM&FBOVESPA Small Cap ETF, focused only on Small-Cap Brazilian Equities.

Find out which ETFs performed the worst last week here.

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