Ag ETFs Rise as Stocks Pause
NEW YORK ( TheStreet) -- ETFs focused on agricultural commodities were rising on Monday morning, as stocks paused for breath.
The UBS E-Tracs CMCI Agriculture TR ETN (UAG), which tracks an index consisting of 12 agriculture futures contracts, was up 6.5%. A sister ETF, UBS E Tracs Food ETN (FUD) was gaining 3.5%, while the iPath DJ-UBS Cotton TR ETN (BAL) was rising 2%.
Agricultural commodities are in demand as weather-related supply disturbances have sent prices of grains such as corn and wheat higher in the last few months.
Among equity ETFs, the Claymore/NYSE Arca Airline Index (FAA) was a major gainer, rising 4% after Southwest Airlines (LUV - Get Report) agreed to acquire AirTran Holdings (AAI) for $1.4 billion. The ETF has a 13.7% exposure to Southwest Airlines, which was surging 9.6% on Monday forenoon trading.The Market Vectors gaming ETF (BJK) was also in focus following news on MGM Resort's (MGM - Get Report) plans to list its Macau operations. Emerging market ETFs such as the Market Vectors Indonesia (IDX) and iShares S&P Latin America 40 ETF (ILF) dominated the equity ETF buy list, while utility ETFs such as Rydex Equal Weight Utilities (RYU) and First Trust Alphadex Utilities (FXU), up 0.3% each, were rising among domestic equities. -- Written by Shanthi Venkataraman in New York
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