passive investing – Venture Capital

An Investor’s Guide to AgTech & Food Innovation

The global food system is under immense pressure due to three overarching trends:

Population Growth
This naturally leads to an increasing demand for food. By 2060, the UN expects the global population to reach 10 billion people.

Limited Capacity of Existing Agriculture
Existing farming methods are very resource intensive and production has already been pushed to the brink. The UN predicts that by 2050, food production will need to increase by 70%.

Unsustainable Consumption
The world is consuming unsustainable amounts of food, particularly in terms of meat. While livestock accounts for 80% of agricultural land, it supplies just 18% of the global calorie supply.

As these trends collide, agriculture technology (AgTech) and food innovation are emerging as two possible solutions. This infographic from Global X ETFs will explain both.

The Major Themes of AgTech

AgTech is the use of technology to maximize crop yields while conserving water and land. Here is a quick explanation of its segments.

Precision Agriculture

Precision agriculture is the integration of artificial intelligence (AI) and the internet of things (IoT) into traditional farming practices. These technologies can provide farmers with more data, which in turn can be used to boost efficiency.

One example is the John Deere See & Spray machine, which uses various sensors to detect where weeds are. By only spraying weeds, farmers can reduce their herbicide use by up to 77%.

Robotics & Automation

How do Institutional Investors Choose ETFs?

February 22, 2022 by Sponsored Content
This post is by Sponsored Content from Visual Capitalist

The following content is sponsored by iShares
Download the ETF Snapshot for free.
How do Institutional Investors Choose ETFs?
Although there are roughly 7,000 ETFs available globally, the majority of assets under management (AUM) belongs to a relatively small number of funds. In fact, among the 100 largest ETFs, the top 20 hold over 50% of the assets.
In this infographic from iShares, we rank the top criteria institutional investors use when selecting an ETF. It’s the last of a five-part series covering key insights from the ETF Snapshot, a comprehensive report on how ETFs are being used.
The Methodology
To assess how institutional investors navigated this volatility, Institutional Investor published a report in 2021 based on a survey of 766 decision makers. Respondents were from various types of organizations, firm sizes, and regions.
For instance, here is how responses broke down by location:
21% Asia Pacific
36% North America
29% Europe, Middle East and Africa
14% Latin America
Here’s what the survey found.
The Top Criteria for Picking an ETF
The following table lists the most important criteria institutional investors consider when selecting an ETF.
Criteria % of respondents (n=762)
AUM, liquidity, and trading volume 68%
Benchmark index used 53%
ETF provider’s brand and market position 48%
Historical performance 46%
Value-added services from ETF provider 45%
Management fee 34%
Transaction cost 29%

n=762
The key takeaway is that institutional investors seek large, highly liquid ETFs that are linked to the right benchmark. Perhaps surprisingly, management fees and transaction (Read more...)