‘Breakfast’ ETF aims to bring home bacon

The first meal of the day may soon be served up to investors through an exchange-traded fund (ETF).

The Direxion Breakfast Commodities Strategy exchange-traded fund will track an index focused on coffee, orange juice, wheat and lean-hog futures, according to a filing this week with the US Securities and Exchange Commission.

Prices of agricultural commodities have surged over the past year as supplychain disruptions kept inventory low and government stimulus underpinned demand.

The price gains have been a huge win for commodity futures ETFs, which have taken in about $10bn (R152bn) in the past year, according to Bloomberg Intelligence ETF analyst Eric Balchunas. “Commodity

ETFs are having something of a moment because of inflation.”

The breakfast ETF, if approved, may be the only fund to track orange-juice futures, Balchunas said. Futures for orange juice have rallied since 2018 amid a plunge in Florida orange output.

“Throw in the fact that they’re sort of putting a friendly thematic face on what’s otherwise been known as some legacy technical-sounding commodity names. It’s possible this could find an audience … maybe out there it seems right.”