For funds on an annual dividend payment cycle, the dividend ex-date is the next business day following the third Friday of December, payable the last business day of the year. For funds on a quarterly dividend payment cycle, the dividend ex-date is the next business day following the third Friday of each March, June, September and December, payable the last business forex trading for beginners day of the month. For funds on a monthly dividend payment cycle, the dividend ex-date is the next business day following the third Friday of each month, payable the last business day of the month. Taxes on distributions
In general, your distributions are subject to federal income tax when they are paid, whether you take them in cash or reinvest them in the Fund.
The team monitors new filings, new launches and new issuers to make sure we place each new ETF in the appropriate context so Financial Advisors can construct high quality portfolios. The information on this site does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial advisor/financial consultant before making any investment decisions.
The “A+ Metric Rated ETF” field, available to ETF Database Pro members, shows the ETF in the Agricultural Commodities with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETF Database Pro. To view information on how the ETF Database Realtime Ratings work, click here. This Fund is not suitable for all investors due to the speculative nature of an investment based upon the Fund’s trading which takes place in very volatile markets.
Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Zacks proprietary quantitative models divide each set of ETFs following a similar investment strategy (style box/industry/asset class) into three risk categories- High, Medium, and Low. The aim of our models is to select the best ETFs within each risk category, so that investors can pick an ETF that matches their particular risk preference in order to better achieve their investment goals. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security.
ETF Database Themes
ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. Beta is a measure of risk representing how a security is expected to respond to general market movements. Smart Beta represents an alternative and selection index based methodology that seeks to outperform a benchmark or reduce portfolio risk, or both. Smart beta funds may underperform cap-weighted benchmarks and increase portfolio risk. The value of the Shares of the Fund relate directly to the value of the futures contracts and other assets held by the Fund and any fluctuation in the value of these assets could adversely affect an investment in the Fund’s Shares. ETF Database analysts have a combined 50 years in the ETF and Financial markets, covering every asset class and investment style.
The Fund is designed for investors who want a cost-effective and convenient way to invest in commodity futures. The Index is a rules-based index composed of futures contracts on some of the most liquid and widely traded agricultural commodities. The Fund and the Index are rebalanced and reconstituted annually in November. This ETF is one of the most popular options for achieving exposure to agricultural commodities; DBA invests in a diversified basket of various agricultural natural resources, and as such can be a useful diversifying agent or inflation hedge. The targeted focus of this fund makes it often more appropriate for investors looking to implement a shorter term tactical tilt, though DBA may also be useful as a component of a long-term, buy-and-hold portfolio.
- The Fund and the Index are rebalanced and reconstituted annually in November.
- Smart Beta represents an alternative and selection index based methodology that seeks to outperform a benchmark or reduce portfolio risk, or both.
- At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors.
- An investor may lose all or substantially all of an investment in the Fund.
- The targeted focus of this fund makes it often more appropriate for investors looking to implement a shorter term tactical tilt, though DBA may also be useful as a component of a long-term, buy-and-hold portfolio.
Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. The Fund seeks to track the Deutsche Bank Liquid Commodity Index-Optimum Yield Agriculture Excess Return Agriculture ER which is intended to reflect the agricultural sector. Our team at ETF Database is committed to making our website the premier source of information on ETF investing with the world’s highest quality ETF tools, content, and resources.
View charts that break down the influence that fund flows and price had on overall assets. Invesco does not guarantee any claims or assume any responsibility for any of Support and resistance indicator the content. Invesco Capital Management LLC, investment adviser and Invesco Distributors, Inc., ETF distributor are indirect, wholly owned subsidiaries of Invesco Ltd.
Distributions in cash may be reinvested automatically in additional whole shares of the fund only if the broker through whom you purchased shares makes such option available. Shareholders of the fund may contact their broker to determine the availability and costs of the service and the details of participation. Brokers may require shareholders to adhere to specific procedures and timetables. If this service is available and used, dividend distributions of both income and realized gains will be automatically reinvested in additional whole shares of the fund purchased in the secondary market. ETF Trends and ETF Database , the preeminent digital platforms for ETF news, research, tools, video, webcasts, native content channels, and more.
DBIQ DIVERSIFIED AGRI INDEX EXCESS RETUR
Those seeking more broadly-based commodities exposure may prefer funds such as DBC or DJP. Investors considering agriculture exposure should take note of the frequency with which the underlying holdings are rolled and the mix of exposure across various contracts. The tax consequences should also be noted; as trading tools an ETF, DBA will feature slightly different tax treatments than ETNs such as AGF (it also won’t expose investors to the credit risk of the issuing institution). In general, your distributions are subject to federal income tax when they are paid, whether you take them in cash or reinvest them in the Fund.
Economic Challenges and What Funds Can Help
The following charts reflect the geographic spread of
underlying holdings. After a decade of underperformance, commodities are experiencing a huge rally due to the Russia-Ukraine war, sky-high inflation, pent-up demand after the COVID-19 pandemic and widespread vaccination. ETF Database’s Financial Advisor Reports are designed as an easy handout for clients to explain the key information on a fund.
A crash? A breakout? No, brace for stocks to stay carefully balanced
Because an investment in futures contracts is volatile, such frequency in the movement in market prices of the underlying futures contracts could cause large losses. Please see “Risk and Other Information” and the Prospectus for additional risk disclosures. Distributions in excess of the Fund’s current and accumulated earnings and profits are treated as a tax-free return of capital to the extent of your basis in the Shares, and as capital gain thereafter. A distribution will reduce the Fund’s net asset value per Share and may be taxable to you as ordinary income or capital gain even though, from an investment standpoint, the distribution may constitute a return of capital.
Under the provisions of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “2003 Tax Act”), long-term capital gains tax rates have generally been reduced for individuals to a maximum of 15% for taxable years beginning before January 1, 2009. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.17% per year. These returns cover a period from January 1, 1988 through September 4, 2023.
A long-running debate in asset allocation circles is how much of a portfolio an investor should… Institutional Separate Accounts and Separately Managed Accounts are offered by affiliated investment advisers, which provide investment advisory services and do not sell securities. These firms, like Invesco Distributors, Inc., are indirect, wholly owned subsidiaries of Invesco Ltd.