Worst ETF (Medium Volume): PowerShares DB Agriculture Fund
Last summer was one of the worst droughts on record. As a result, agricultural commodity prices skyrocketed. Since then, though, they’ve come back to earth, giving up almost all their gains.
The PowerShares DB Agriculture Fund (NYSE:DBA) replicates the DB Agriculture Index, which invests in future contracts for commodities like corn, soybeans and sugar. The DBA is down 7% in the first quarter and roughly the same over the past year. Considering how badly investors panicked about prices last summer, it’s crazy where the fund sits almost a year later.
While I’m not a weather professional, I find it hard to imagine another summer like 2012. Therefore, it’s very possible the fund will endure more pain in the quarters to come.