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Should You Invest in the VanEck Agribusiness ETF (MOO)?
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Designed to provide broad exposure to the Materials - Agribusiness segment of the equity market, the VanEck Agribusiness ETF (MOO - Free Report) is a passively managed exchange traded fund launched on 08/31/2007.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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 15, placing it in bottom 6%.
Index Details
The fund is sponsored by Van Eck. It has amassed assets over $718.24 million, making it one of the larger ETFs attempting to match the performance of the Materials - Agribusiness segment of the equity market. MOO seeks to match the performance of the MVIS Global Agribusiness Index before fees and expenses.
The MVIS Global Agribusiness Index tracks the overall performance of companies involved in agri-chemicals, animal health and fertilizers, seeds and traits; farm/irrigation equipment and farm machinery; agricultural products, aquaculture and fishing, livestock plantations, and trading of agricultural products.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.53%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 3.04%.
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, Zoetis Inc (ZTS - Free Report) accounts for about 8.67% of total assets, followed by Deere & Co (DE - Free Report) and Corteva Inc (CTVA - Free Report) .
The top 10 holdings account for about 55.99% of total assets under management.
Performance and Risk
Year-to-date, the VanEck Agribusiness ETF has lost about -3.45% so far, and is down about -9.67% over the last 12 months (as of 09/02/2024). MOO has traded between $68.44 and $84.29 in this past 52-week period.
The ETF has a beta of 0.91 and standard deviation of 17.99% for the trailing three-year period, making it a low risk choice in the space. With about 60 holdings, it effectively diversifies company-specific risk.
Alternatives
VanEck Agribusiness 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, MOO is a reasonable 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.
IShares MSCI Agriculture Producers ETF (VEGI - Free Report) tracks MSCI ACWI Select Agriculture Producers Investable Market Index. The fund has $106.53 million in assets. VEGI has an expense ratio of 0.39%.
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 VanEck Agribusiness ETF (MOO)?
Designed to provide broad exposure to the Materials - Agribusiness segment of the equity market, the VanEck Agribusiness ETF (MOO - Free Report) is a passively managed exchange traded fund launched on 08/31/2007.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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 15, placing it in bottom 6%.
Index Details
The fund is sponsored by Van Eck. It has amassed assets over $718.24 million, making it one of the larger ETFs attempting to match the performance of the Materials - Agribusiness segment of the equity market. MOO seeks to match the performance of the MVIS Global Agribusiness Index before fees and expenses.
The MVIS Global Agribusiness Index tracks the overall performance of companies involved in agri-chemicals, animal health and fertilizers, seeds and traits; farm/irrigation equipment and farm machinery; agricultural products, aquaculture and fishing, livestock plantations, and trading of agricultural products.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.53%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 3.04%.
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, Zoetis Inc (ZTS - Free Report) accounts for about 8.67% of total assets, followed by Deere & Co (DE - Free Report) and Corteva Inc (CTVA - Free Report) .
The top 10 holdings account for about 55.99% of total assets under management.
Performance and Risk
Year-to-date, the VanEck Agribusiness ETF has lost about -3.45% so far, and is down about -9.67% over the last 12 months (as of 09/02/2024). MOO has traded between $68.44 and $84.29 in this past 52-week period.
The ETF has a beta of 0.91 and standard deviation of 17.99% for the trailing three-year period, making it a low risk choice in the space. With about 60 holdings, it effectively diversifies company-specific risk.
Alternatives
VanEck Agribusiness 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, MOO is a reasonable 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.
IShares MSCI Agriculture Producers ETF (VEGI - Free Report) tracks MSCI ACWI Select Agriculture Producers Investable Market Index. The fund has $106.53 million in assets. VEGI has an expense ratio of 0.39%.
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.