An ETF specialising in food and beverages has recorded a surge in capital inflows for the first time since its inception in response to a deepening global food crisis and rising prices. According to data compiled by Bloomberg, last Friday$First Trust Exchange-Traded Fund VI First Trust Nasdaq Food & Beverage ETF (FTXG.US) $It received a capital injection of $230 million from investors, the largest since it was founded in 2016. After years of inactivity, investors have injected money into the fund for three consecutive days.

During the war between Russia and Ukraine, the prices of everything from wheat to cooking oil were soaring. Both countries are important exporters of agricultural products, and Ukraine is the world's largest producer of sunflower oil and the top six exporters of wheat, corn, chicken and honey. Earlier, Zhitong Finance also reported that Indonesia banned exports of edible oil, accounting for 1/3 of global exports of edible oil and 60 per cent of palm oil exports.

Kevin Kelly, chief executive of Kelly ETFs, said in an email that First Trust's Nasdaq food and beverage ETF "is an interesting choice for narrating the conflict between Russia and Ukraine and food inflation."

Food prices were already rising before the war between Russia and Ukraine, but subsequent sanctions against Russia by Europe and the US caused global food prices to soar at the fastest pace in history, exacerbating consumer inflation woes and exacerbating the global food crisis. A United Nations food price index has soared every month this year, hitting a 30-year high.

So far this year, the First Trust Nasdaq food and beverage ETF is up about 7 per cent, while the S & P 500 is down more than 10 per cent. The main stocks held by the fund include$Archer Daniels Midland (ADM.US) $、$Tyson Foods (TSN.US) $AndHershey (HSY.US) $It has been rising since the end of 2021.

James Pillow, managing director of Moors & Cabot, speculates that these flows may be related to portfolio adjustments in one of First Trust's models. The investment portfolio of this model is usually a ready-made investment strategy constructed by ETF. WallachBeth Capital's Mohit Bajaj points out that money has been moving in and out of other First Trust etf, such as First Trust consumer discretionary AlphaDEX, which has outflowed $420 million so far in April.

Other ETF specialising in food and agricultural products have also recorded new capital inflows. Investors spoke to last month$Ishares Msci Global Agriculture Producers Fund (VEGI.US) $A record $105 million has been injected and another $93 million has been injected so far in April. Since the end of March$Powershares dynamic Food and Beverage mix (PBJ.US) $It has received more than $98 million in investment, the largest since 2014. So far$Invesco Deutsche Bank Agriculture ETF (DBA.US) $It received about $830 million in capital injections in March and April.

The agency said that the rise in the price of agricultural products has given rise to investment opportunities in many areas, such as agricultural heavy construction machinery, agricultural products producers and traders.According to Futuo Niuniu$Agricultural products (BK2007.US) $、Agricultural input (BK2010.US) $And$Agricultural heavy construction machinery (BK2471.US) $The plate shows that a number of agricultural stocks have moved strongly this year.

"this fierce chase may prove correct, because as the war between Russia and Ukraine continues, it seems almost impossible to make up for the agricultural deficit," Pillow said.