Invesco DB Agriculture Fund

DBA

Market cap $793M

Invesco DB Agriculture Fund ETF remains a strong choice for agricultural sector exposure, with effective risk allocation and a diversified portfolio across grains, softs, and animal proteins. Despite sector divergences in 2025, DBA's rules-based approach targets areas of price action and liquidity, supporting its resilience and performance. The ETF's 3.92% dividend yield offsets its relatively high 0.85% expense ratio, making the cost structure more attractive for investors.

A seemingly offhand comment by President Donald Trump may have caused more than political rumination; it's now causing turmoil in commodity markets, with impacts for ETF investors.

On Sunday, I wrote the playbook for the Economic Modern Family I have also written a lot about hard assets-uranium (flying), silver (holding), oil (consolidating) and natural gas (basing). I also noted that soybeans were starting break out last week.

DBA offers diversified exposure to grains, oilseeds, softs, and animal proteins, making it a strong agricultural ETF for portfolio diversification. Recent performance is driven by bullish trends in animal proteins and cocoa, offsetting weakness in grains and some softs like sugar and coffee. DBA's proactive management and sector allocation have enabled it to outperform, with a 116% rally since 2020 and a strong yield from backwardation.

President Trump's trade war comes as cotton farmers endure tough economics that aren't expected to improve—leaving growers of the American staple crop with few choices.

I cannot remind you all enough of how important it is to check the Inflation Trifecta before getting too attached to inflation, stagflation or deflation. DBA is the ETF that holds a basket of agricultural and soft commodities (NYSEARCA: DBA).

Exposure to agricultural commodities through the Invesco DB Agriculture Fund ETF diversifies portfolios, leveraging grains, oilseeds, meats, and soft commodities. The DBA ETF has shown a bullish trend since 2020, with technical support at $22.79 and resistance at $28.48, reflecting strong performance in soft commodities and meats. Agricultural commodities are essential for nutrition and energy, with weather and crop issues being critical factors for price movements in 2025.

Gold and silver reached record levels. The energy sector delivered mixed results, while the agricultural market experienced a robust bull run.

The soft commodities sector led gains in 2023 and 2024, with significant increases in cocoa, FCOJ, and arabica coffee futures. The Invesco DB Agriculture Fund ETF (DBA) has over 41% exposure to soft commodities, making it a top performer. Coffee and cocoa prices hit record highs in 2024 due to supply concerns, driving DBA's bullish trend.

Cocoa and coffee prices are driving DBA to a 10 1/2-year high due to adverse weather and robust demand. The cocoa supply crunch, worsened by poor weather in key regions, has led to historically low inventories and rising prices. Regulatory pressures from the EU and climate change impacts are adding to the price volatility and supply constraints for cocoa and coffee.