Is BetaShares Global Agriculture ETF (ASX:FOOD) a buy today?

I think it’s worth considering if BetaShares Global Agriculture ETF (ASX: FOOD) is a buy today.

This is an exchange-traded fund (ETF) offered by BetaShares to give investors exposure to some of the world’s leading food-related businesses.

You can find many food shares on the ASX like Tassal Group Limited (ASX: TGR), Select Harvests Limited (ASX: SHV) and Costa Group Holdings Ltd (ASX: CGC).

However, if you want food shares with a more global outlook then this ETF could be what you’re after.

Some of its top holdings include agricultural processor & food ingredient provider Archer Daniel Midland and farming machinery businesses Deere & Co and Kubota Corp. A lot of its other holdings relate to packaged foods and meats businesses.

Over half of the ETF’s assets are allocated to US businesses, but that’s just where a majority of worldwide businesses are listed. Some other countries that are represented include Japan, Norway, the UK, Germany, Malaysia, Hong Kong, Canada and the Netherlands.

The ETF has an annual management fee of 0.57%, which is cheaper than many active managers but more expensive than some of the main low-cost ETFs.

We all need food so, other than a commodity aspect to a few of this ETF’s holdings, it could be described as somewhat defensive.

However, over the long-term it may generate good growth because the world may face a food shortage by 2030. If the world isn’t to face a food shortage then it will likely be food businesses that are able to improve the food yields from farmland.

Foolish takeaway

A bonus with this ETF is that it has a 3.5% yield, which is materially more than what you can get at the bank. If I were looking to expand my portfolio with another ETF then this one would be high on my shortlist.

However, I’d rather fill my portfolio with quality ASX shares such as these 3 winners for growth and dividends.

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