These types of investments are typically for more experienced investors who study prices, markets, supply, demand, and other market fundamentals. A second way to invest is through exchange-traded funds (ETFs) . These funds bundle a basket of assets into a marketable security. They typically trade like a common stock on an exchange like the NYSE or Nasdaq. The funds offer broad exposure to the fertilizer markets by owning percentages in fertilizer companies or the larger agricultural sector. Three prominent ETFs with exposure to the fertilizer industry are the VanEck Vectors Agribusiness Fund (MOO), IQ Global Agribusiness Small Cap Fund (CROP), and Global X Fertilizers/Potash Fund (SOIL). The third way to invest is through individual company stock . These type of investments require more research and a fundamental understanding of the fertilizer markets. And the investor must have a clear understanding of the company, its strengths, weaknesses, balance sheet, earnings, margins, cost structure, and dividend (yield). Much of this information can be gleaned through public information and analyst reports, but it requires some homework. The upside of individual stock investing is that given the proper evaluation and understanding, individual stocks can return multiples on an investment. But like any investment, there are risks. Fertilizer manufacturing companies have sprung up across the globe as the need for food continues to grow. A couple of the larger ones are CF Industries Holdings (CF) and Potash Corporation of Saskatchewan (POT). At my Commodity Supercycles newsletter, we look for unique investment opportunities. Sometimes it’s gold, platinum, or oil. The things that dreams are made of. Other times, its rather mundane… like fertilizer. But every time, we try to find that unique timely investment that will build your wealth.
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