We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should You Invest in the iShares MSCI Agriculture Producers ETF (VEGI)?
Read MoreHide Full Article
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.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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 13, placing it in bottom 19%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $231.84 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
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 2.02%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Looking at individual holdings, Deere (DE - Free Report) accounts for about 20.91% of total assets, followed by Archer Daniels Midland (ADM - Free Report) and Corteva Inc (CTVA - Free Report) .
The top 10 holdings account for about 60.46% of total assets under management.
Performance and Risk
The ETF has lost about -5.74% so far this year and is down about -0.17% in the last one year (as of 06/22/2023). In that past 52-week period, it has traded between $37.03 and $45.76.
The ETF has a beta of 0.88 and standard deviation of 19.92% for the trailing three-year period, making it a medium risk choice in the space. With about 194 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 good 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 $1.11 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
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.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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 13, placing it in bottom 19%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $231.84 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
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 2.02%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Looking at individual holdings, Deere (DE - Free Report) accounts for about 20.91% of total assets, followed by Archer Daniels Midland (ADM - Free Report) and Corteva Inc (CTVA - Free Report) .
The top 10 holdings account for about 60.46% of total assets under management.
Performance and Risk
The ETF has lost about -5.74% so far this year and is down about -0.17% in the last one year (as of 06/22/2023). In that past 52-week period, it has traded between $37.03 and $45.76.
The ETF has a beta of 0.88 and standard deviation of 19.92% for the trailing three-year period, making it a medium risk choice in the space. With about 194 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 good 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 $1.11 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.