This ETN offers exposure to sugar, an important agricultural commodity used in a growing number of applications beyond foods and beverages. Because sugar can often exhibit significant volatility over a short period of time, it is a popular asset among speculators looking to turn a short-term profit. Given the narrow focus of this product, SGAR probably doesn't belong in a long-term buy-and-hold portfolio; it is most effective as a tactical tool to deliver access towards a narrow slice of the commodity market. Investors seeking more broadly-based exposure to agricultural commodities have a number of options in the Agricultural Commodities ETFdb Category, including DIRT (an ETN) and DBA (an ETF). There are multiple options for sugar exposure; a few unique aspects of SGAR are noteworthy. First, it should be noted that SGAR is an ETN, meaning that investors are exposed to the credit risk of the issuing financial institution but will be able to avoid tracking error (which often is a major consideration for commodity ETFs). The ETN structure may also have some advantageous tax features relative to ETFs, especially for those planning to hold a position for more than a year. Also noteworthy is the roll frequency of the underlying index; SGAR offers exposure to futures contracts, and as such may not correspond to movements in spot prices of sugar. Unlike many commodity ETPs that roll holdings on a set monthly basis, SGAR does not roll exposure on a predetermined schedule; the roll timing is based on a proprietary methodology designed to reduce the impact of contango or backwardation on returns, and as such this fund can have positions in close-to-expiration or long-dated contracts. This feature may make SGAR more appealing to investors looking to establish a position in sugar over the long term. Those looking for a short-term trading vehicle probably will be better served by a product such as SGG that focuses on shorter maturity futures contracts.
The adjacent table gives investors an individual Realtime Rating for SGAR on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETFdb Pro members, shows the ETF in the Agricultural Commodities with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETFdb Pro. To view information on how the ETFdb Realtime Ratings work, click here.View the Category Report
The following tables and charts contain in-depth metrics for this ETF and compare it to similar peer ETFs within its ETFdb Category.
This ETF is not currently available for commission free trading on any platforms.
There are 0 other ETFs in the Agricultural Commodities ETFdb Category that are also eligible for commission free trading:
This section shows how this ETF has performed relative to its peer group ETFdb Category.
The following charts can be customized to display historical performance in a number of different formats, including line charts, bar charts, and candlesticks. Time periods can be adjusted to increase or decrease the period shown, ranging from five minutes to several months.
The following chart also includes the option to compare the performance of SGAR relative to other ETFs and benchmarks or to include indicators such as Bollinger Bands, relative strength, and moving averages.
This section shows how the volatility of this ETF compares to the peer group ETFdb Category.
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