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) 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) 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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