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Should You Invest in the VanEck Agribusiness ETF (MOO)?
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Launched on 08/31/2007, the VanEck Agribusiness ETF (MOO - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Materials - Agribusiness segment of the equity market.
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 also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Materials - Agribusiness is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 14, placing it in bottom 13%.
Index Details
The fund is sponsored by Van Eck. It has amassed assets over $926.68 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 2.97%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. 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 9.15% of total assets, followed by Deere & Co (DE - Free Report) and Bayer Ag .
The top 10 holdings account for about 55.68% of total assets under management.
Performance and Risk
The ETF has lost about -9.63% so far this year and is down about -9.49% in the last one year (as of 12/25/2023). In that past 52-week period, it has traded between $72.16 and $92.74.
The ETF has a beta of 0.93 and standard deviation of 18.30% for the trailing three-year period, making it a low risk choice in the space. With about 61 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 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.
IShares MSCI Agriculture Producers ETF (VEGI - Free Report) tracks MSCI ACWI Select Agriculture Producers Investable Market Index. The fund has $164.30 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)?
Launched on 08/31/2007, the VanEck Agribusiness ETF (MOO - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Materials - Agribusiness segment of the equity market.
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 also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Materials - Agribusiness is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 14, placing it in bottom 13%.
Index Details
The fund is sponsored by Van Eck. It has amassed assets over $926.68 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 2.97%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. 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 9.15% of total assets, followed by Deere & Co (DE - Free Report) and Bayer Ag .
The top 10 holdings account for about 55.68% of total assets under management.
Performance and Risk
The ETF has lost about -9.63% so far this year and is down about -9.49% in the last one year (as of 12/25/2023). In that past 52-week period, it has traded between $72.16 and $92.74.
The ETF has a beta of 0.93 and standard deviation of 18.30% for the trailing three-year period, making it a low risk choice in the space. With about 61 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 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.
IShares MSCI Agriculture Producers ETF (VEGI - Free Report) tracks MSCI ACWI Select Agriculture Producers Investable Market Index. The fund has $164.30 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.