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Should You Invest in the iShares MSCI Agriculture Producers ETF (VEGI)?
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If you're interested in broad exposure to the Materials - Agribusiness segment of the equity market, look no further than the iShares MSCI Agriculture Producers ETF (VEGI - Free Report) , a passively managed exchange traded fund launched on 01/31/2012.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Materials - Agribusiness is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 16, placing it in bottom 0%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $207.34 million, making it one of the average sized ETFs attempting to match the performance of the Materials - Agribusiness segment of the equity market. VEGI seeks to match the performance of the MSCI ACWI Select Agriculture Producers Investable Market Index before fees and expenses.
The MSCI ACWI Select Agriculture Producers Investable Market Index measures the equity performance of companies in both developed and emerging markets that are primarily engaged in the business of agriculture at or near the initial phase of agricultural input and production.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.39%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 2.06%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Deere (DE - Free Report) accounts for about 21.94% of total assets, followed by Archer Daniels Midland (ADM - Free Report) and Corteva Inc (CTVA - Free Report) .
Performance and Risk
So far this year, VEGI has lost about -7.73%, and is down about -8.45% in the last one year (as of 08/22/2023). During this past 52-week period, the fund has traded between $37.03 and $45.76.
The ETF has a beta of 0.89 and standard deviation of 19.70% for the trailing three-year period, making it a medium risk choice in the space. With about 192 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares MSCI Agriculture Producers ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VEGI is a sufficient option for those seeking exposure to the Materials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
VanEck Agribusiness ETF (MOO - Free Report) tracks MVIS Global Agribusiness Index. The fund has $1.08 billion in assets. MOO has an expense ratio of 0.53%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the iShares MSCI Agriculture Producers ETF (VEGI)?
If you're interested in broad exposure to the Materials - Agribusiness segment of the equity market, look no further than the iShares MSCI Agriculture Producers ETF (VEGI - Free Report) , a passively managed exchange traded fund launched on 01/31/2012.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Materials - Agribusiness is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 16, placing it in bottom 0%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $207.34 million, making it one of the average sized ETFs attempting to match the performance of the Materials - Agribusiness segment of the equity market. VEGI seeks to match the performance of the MSCI ACWI Select Agriculture Producers Investable Market Index before fees and expenses.
The MSCI ACWI Select Agriculture Producers Investable Market Index measures the equity performance of companies in both developed and emerging markets that are primarily engaged in the business of agriculture at or near the initial phase of agricultural input and production.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.39%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 2.06%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Deere (DE - Free Report) accounts for about 21.94% of total assets, followed by Archer Daniels Midland (ADM - Free Report) and Corteva Inc (CTVA - Free Report) .
Performance and Risk
So far this year, VEGI has lost about -7.73%, and is down about -8.45% in the last one year (as of 08/22/2023). During this past 52-week period, the fund has traded between $37.03 and $45.76.
The ETF has a beta of 0.89 and standard deviation of 19.70% for the trailing three-year period, making it a medium risk choice in the space. With about 192 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares MSCI Agriculture Producers ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VEGI is a sufficient option for those seeking exposure to the Materials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
VanEck Agribusiness ETF (MOO - Free Report) tracks MVIS Global Agribusiness Index. The fund has $1.08 billion in assets. MOO has an expense ratio of 0.53%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.