Nick Brooks, head of research and investment strategy at ETF Securities, explains that agriculture is taking off as investors search for high-return, uncorrelated assets.
Most investors are accustomed to reading about the gold and oil markets, but few have considered the benefits of diversifying their portfolios using agricultural commodities. A quick overview of the recent performance of agricultural commodities versus the world's major equity benchmarks indicates this is a sector that should not be ignored. But beyond performance, why invest in commodities? At the broadest level, commodities typically have a low correlation with equities and bonds. Therefore, if commodities are added to a portfolio of equities and bonds, the portfolio will general...
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