Why a Red Light Shines for One Soybean ETF

The video discusses a soybean fund known by its ticker, which offers exposure to soybeans through futures contracts. Despite having $28 million in assets, the fund has a high cost of 1.15% and has seen a negative return of 40% since 2011. The US-China trade war significantly impacted soybean prices, with tariffs further affecting the market. The fund is rated poorly due to potential future costs.

What is the primary focus of the soybean fund?

• Investing in real estate

• Investing in multiple agricultural commodities

• Providing exposure to soybeans through futures contracts

• Focusing on technology stocks

What was the impact of the US-China trade war on soybean prices in 2018?

• Prices increased significantly

• Prices remained stable

• Prices dropped to a 10-year low

• Prices doubled

What additional tariff did China impose on American soybeans?

• 5%

• 10%

• 20%

• 15%

What rating did the Bloomberg Intelligence Traffic Light system give to soybeans?

• Red light

• Yellow light

• Green light

• Blue light

What is a potential reason for the red light rating in the Bloomberg Intelligence Traffic Light system?

• High potential for future costs

• Low volatility

• Strong market growth

• Stable market conditions