Rising inflation has pushed the price of groceries to the highest level since May 2009. According to the latest data from Kantar, grocery price inflation surged 7% over the past four weeks, marking the fastest increase in 13 years. The rally was driven by a sharp rise in the price of dog food, savory snacks and fresh meat.
Investors seeking to tap the increased price in groceries should consider First Trust Nasdaq Food & Beverage ETF ( FTXG Quick Quote FTXG - Free Report) , iShares MSCI Global Agriculture Producers ETF ( VEGI Quick Quote VEGI - Free Report) , Invesco Dynamic Food & Beverage ETF ( PBJ Quick Quote PBJ - Free Report) and Invesco DB Agriculture Fund ( DBA Quick Quote DBA - Free Report) . Russia's ongoing war in Ukraine has disrupted crop supplies, piling up more inflationary pain on consumers and worsening the global hunger crisis. A recent survey by Kantar showed that about 22% of households are “struggling” to make ends meet, as rising price is a concern for more than nine in 10 of these people (read: Food ETFs Getting Investors' Love Amid Shortage). Global food prices hovered around an all-time high in April. Wheat prices skyrocketed as Ukraine and Russia are some of the world's biggest wheat producers, accounting for around 25% of the global supply. Prices of other foodstuff like rice, meat, dairy and sugar have also risen. First Trust Nasdaq Food & Beverage ETF ( FTXG Quick Quote FTXG - Free Report) First Trust Nasdaq Food & Beverage ETF offers exposure to U.S. companies within the food and beverage industry. It tracks the Nasdaq US Smart Food & Beverage Index, holding 30 securities in its basket, with each accounting for less than 9% share. First Trust Nasdaq Food & Beverage ETF has AUM of $798.3 million and charges 60 bps in annual fees. It sees an average daily volume of about 498,000 shares and has a Zacks ETF Rank #3 (Hold). iShares MSCI Global Agriculture Producers ETF ( VEGI Quick Quote VEGI - Free Report) iShares MSCI Global Agriculture Producers ETF provides global exposure to companies that produce fertilizers and agricultural chemicals, farm machinery, packaged foods and meats by tracking the MSCI ACWI Select Agriculture Producers Investable Market Index. It holds 145 stocks in its basket, with a heavy concentration on the top firm. American firms account for 54.3% of the assets, while Canada, Norway and Japan round off the next three spots. iShares MSCI Global Agriculture Producers ETF has $287 million in AUM and trades around 180,000 shares in an average daily volume. It charges 39 bps in fees per year from investors (read: 3 ETFs to Fight Surging Food Inflation). Invesco Dynamic Food & Beverage ETF ( PBJ Quick Quote PBJ - Free Report) Invesco Dynamic Food & Beverage ETF offers exposure to 31 stocks engaged in the manufacture, sale or distribution of food and beverage products, agricultural products and products related to the development of new food technologies by tracking the Dynamic Food & Beverage Intellidex Index. With AUM of $292.5 million, Invesco Dynamic Food & Beverage ETF charges 63 bps in annual fees from investors and sees a moderate average daily volume of 206,000 shares. PBJ has a Zacks ETF Rank #3 with a Medium risk outlook. Invesco DB Agriculture Fund ( DBA Quick Quote DBA - Free Report) Invesco DB Agriculture Fund tracks the DBIQ Diversified Agriculture Index Excess Return, a rules-based index composed of futures contracts on some of the most liquid and widely traded agricultural commodities. It has key holdings in wheat, corn, soybeans, sugar, live cattle, and coffee, with double-digit exposure each. Invesco DB Agriculture Fund charges 93 bps on an annual basis and trades in a volume of 3 million shares a day. It has amassed $2.4 billion in its asset base.