Softs recommendations

Hi Michael,

We’re not really investors/traders of the softs markets, there’s not many companies on the ASX exposed to the likes of coffee, sugar and Cocoa.

Also, on the ETF front the choices are limited, with the US-traded broad-basket commodity Invesco DB Agriculture Fund (NYSE: DBA) probably the best option:

The fund provides diversified exposure to 13 agricultural commodities through futures, spanning grains, soft commodities and livestock, rather than holding physical commodities or equities. Its weighting methodology prevents any single commodity from dominating, while its “optimum yield” approach aims to reduce the drag from rolling futures contracts.

However, it’s essentially a broad agricultural commodity play rather than a pure soft-commodity trade — useful for diversified exposure to rising agricultural prices and inflation, but moves in cocoa, coffee or sugar can be diluted by weaker grains or livestock.

The ~0.85% expense ratio is also relatively high, making it an average instrument for investors with a strong view on one particular commodity – futures markets are the obvious alternative for the brave.

The DBA ETF is currently testing its 2012 highs and we’re bullish, in line with our outlook towards more ASX-orientated commodities. However, we’re conscious that 10% pullbacks are not uncommon, i.e. 3 in the last 3 years!

• Hence, as bulls we would advocate a strategy that provided flexibility to add into weakness.

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Invesco Invesco DB Agriculture Fund (DBA US)

LAST UPDATED 02/09/2026 14:32

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Invesco Invesco DB Agriculture Fund (DBA US)

LAST UPDATED 02/09/2026 14:32