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John Deere Beats on Q3 Earnings, Ups View: 5 ETFs to Buy
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The world’s largest agricultural equipment maker under the iconic John Deere brand, Deere & Co (DE - Free Report) , reported robust third-quarter fiscal 2023 results, beating estimates on both counts. The company also lifted its profit outlook for the fiscal year.
Despite the solid results, Deere shares dropped 5.3% on the day amid concerns about how long the tractor and farm boom could last. This has put ETFs with the largest allocation to this farm equipment giant in focus. These funds include iShares MSCI Agriculture Producers ETF (VEGI - Free Report) , First Trust Indxx Global Agriculture ETF (FTAG - Free Report) , VanEck Agribusiness ETF (MOO - Free Report) , VanEck Natural Resources ETF (HAP - Free Report) and VanEck Future of Food ETF .
Deere’s earnings per share came in at $10.20, well above the Zacks Consensus Estimate of $8.14 and up a whopping 66% from the year-ago earnings. Total net revenues increased 10% year over year to $14.3 billion and beat the Zacks Consensus Estimate of $14.2 billion. The results were fueled by robust global demand and easing supply chains (read: 5 ETFs to Ride On Solid Q2 Economic Growth).
For fiscal 2023, the farm equipment giant lifted its net income guidance to $9.75-$10 billion from the previous projection of $9.25 billion-$9.5 billion, citing positive fundamentals in the farm and construction sectors.
iShares MSCI Global Agriculture Producers ETF (VEGI - Free Report)
iShares MSCI Agriculture Producers ETF provides global exposure to the companies that produce fertilizers and agricultural chemicals, farm machinery, packaged foods and meats by tracking the MSCI ACWI Select Agriculture Producers Investable Market Index. Holding 156 stocks in its basket, Deere takes the top spot at 22.2% share. American firms account for 61% of the assets, while Canada, Norway and India round off the next three spots.
iShares MSCI Agriculture Producers ETF is less popular and illiquid, with $211.5 million in AUM and around 40,000 shares in an average daily volume. It charges 39 bps in fees per year from investors (see: all Materials ETFs here).
First Trust Indxx Global Agriculture ETF (FTAG - Free Report)
First Trust Indxx Global Agriculture ETF follows the Indxx Global Agriculture Index, which is a market-capitalization weighted index designed to measure the performance of companies, directly or indirectly engaged in improving agricultural yields. It holds 50 stocks in its basket, with John Deere occupying the top position at 10.2%. From the perspective of industrial exposure, materials takes the largest share at 47.6%, followed by 31.2% in industrials and 9.7% in healthcare. Here again, the United States is the top country with a 33.1% share, while Germany takes a 20.5% share.
First Trust Indxx Global Agriculture ETF is an overlooked ETF, having accumulated $13.3 million in AUM and trading in an average daily volume of about 3,000 shares. It charges 70 bps in annual fees.
VanEck Agribusiness ETF is by far the most popular choice in the space, with an AUM of about $1.1 billion and an average daily volume of 64,000 shares. It tracks the MVIS Global Agribusiness Index, which offers exposure to companies involved in agri-chemicals, animal health and fertilizers, seeds and traits, farm/irrigation equipment and farm machinery, aquaculture and fishing, livestock, cultivation and plantations, and trading of agricultural products.
VanEck Agribusiness ETF holds 61 securities in its basket, with John Deere capturing the second position with an 8.6% share. It charges 53 bps in annual fees.
With AUM of $124.8 million, VanEck Natural Resources ETF offers exposure to companies that are involved in the production and distribution of commodities and commodity-related products and services in the following sectors — Agriculture, Alternatives (Water & Alternative Energy), Base and Industrial Metals, Energy, Forest Products, and Precious Metals. It tracks the VanEck Natural Resources Index, holding 449 stocks in its basket. John Deere takes the top spot at 5.1% of the assets. Here too, American firms dominate the portfolio with nearly 50.2% share. Energy is the top sector, with 44.7%.
VanEck Natural Resources ETF charges 50 bps in annual fees and trades in an average daily volume of 21,000 shares.
VanEck Future of Food ETF
VanEck Future of Food ETF is an actively managed ETF that seeks long-term capital appreciation by investing in companies engaged in Agri-Food technology and innovation, which encompasses industries and companies that are leading, enabling, supplying, disrupting, or benefiting from new environmentally sustainable agriculture and food products and services. It holds 42 stocks in its basket, with Deere taking the top spot at 6.4%. American firms dominate the portfolio with a 53.2% share (read: 4 Sector ETFs to Fight Sticky Inflation).
VanEck Future of Food ETF has been able to manage $3.3 million in its asset base while trading in a volume of 1,000 shares per day on average. It charges 69 bps in fees per year.
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John Deere Beats on Q3 Earnings, Ups View: 5 ETFs to Buy
The world’s largest agricultural equipment maker under the iconic John Deere brand, Deere & Co (DE - Free Report) , reported robust third-quarter fiscal 2023 results, beating estimates on both counts. The company also lifted its profit outlook for the fiscal year.
Despite the solid results, Deere shares dropped 5.3% on the day amid concerns about how long the tractor and farm boom could last. This has put ETFs with the largest allocation to this farm equipment giant in focus. These funds include iShares MSCI Agriculture Producers ETF (VEGI - Free Report) , First Trust Indxx Global Agriculture ETF (FTAG - Free Report) , VanEck Agribusiness ETF (MOO - Free Report) , VanEck Natural Resources ETF (HAP - Free Report) and VanEck Future of Food ETF .
Deere’s earnings per share came in at $10.20, well above the Zacks Consensus Estimate of $8.14 and up a whopping 66% from the year-ago earnings. Total net revenues increased 10% year over year to $14.3 billion and beat the Zacks Consensus Estimate of $14.2 billion. The results were fueled by robust global demand and easing supply chains (read: 5 ETFs to Ride On Solid Q2 Economic Growth).
For fiscal 2023, the farm equipment giant lifted its net income guidance to $9.75-$10 billion from the previous projection of $9.25 billion-$9.5 billion, citing positive fundamentals in the farm and construction sectors.
iShares MSCI Global Agriculture Producers ETF (VEGI - Free Report)
iShares MSCI Agriculture Producers ETF provides global exposure to the companies that produce fertilizers and agricultural chemicals, farm machinery, packaged foods and meats by tracking the MSCI ACWI Select Agriculture Producers Investable Market Index. Holding 156 stocks in its basket, Deere takes the top spot at 22.2% share. American firms account for 61% of the assets, while Canada, Norway and India round off the next three spots.
iShares MSCI Agriculture Producers ETF is less popular and illiquid, with $211.5 million in AUM and around 40,000 shares in an average daily volume. It charges 39 bps in fees per year from investors (see: all Materials ETFs here).
First Trust Indxx Global Agriculture ETF (FTAG - Free Report)
First Trust Indxx Global Agriculture ETF follows the Indxx Global Agriculture Index, which is a market-capitalization weighted index designed to measure the performance of companies, directly or indirectly engaged in improving agricultural yields. It holds 50 stocks in its basket, with John Deere occupying the top position at 10.2%. From the perspective of industrial exposure, materials takes the largest share at 47.6%, followed by 31.2% in industrials and 9.7% in healthcare. Here again, the United States is the top country with a 33.1% share, while Germany takes a 20.5% share.
First Trust Indxx Global Agriculture ETF is an overlooked ETF, having accumulated $13.3 million in AUM and trading in an average daily volume of about 3,000 shares. It charges 70 bps in annual fees.
VanEck Vectors Agribusiness ETF (MOO - Free Report)
VanEck Agribusiness ETF is by far the most popular choice in the space, with an AUM of about $1.1 billion and an average daily volume of 64,000 shares. It tracks the MVIS Global Agribusiness Index, which offers exposure to companies involved in agri-chemicals, animal health and fertilizers, seeds and traits, farm/irrigation equipment and farm machinery, aquaculture and fishing, livestock, cultivation and plantations, and trading of agricultural products.
VanEck Agribusiness ETF holds 61 securities in its basket, with John Deere capturing the second position with an 8.6% share. It charges 53 bps in annual fees.
VanEck Vectors Natural Resources ETF (HAP - Free Report)
With AUM of $124.8 million, VanEck Natural Resources ETF offers exposure to companies that are involved in the production and distribution of commodities and commodity-related products and services in the following sectors — Agriculture, Alternatives (Water & Alternative Energy), Base and Industrial Metals, Energy, Forest Products, and Precious Metals. It tracks the VanEck Natural Resources Index, holding 449 stocks in its basket. John Deere takes the top spot at 5.1% of the assets. Here too, American firms dominate the portfolio with nearly 50.2% share. Energy is the top sector, with 44.7%.
VanEck Natural Resources ETF charges 50 bps in annual fees and trades in an average daily volume of 21,000 shares.
VanEck Future of Food ETF
VanEck Future of Food ETF is an actively managed ETF that seeks long-term capital appreciation by investing in companies engaged in Agri-Food technology and innovation, which encompasses industries and companies that are leading, enabling, supplying, disrupting, or benefiting from new environmentally sustainable agriculture and food products and services. It holds 42 stocks in its basket, with Deere taking the top spot at 6.4%. American firms dominate the portfolio with a 53.2% share (read: 4 Sector ETFs to Fight Sticky Inflation).
VanEck Future of Food ETF has been able to manage $3.3 million in its asset base while trading in a volume of 1,000 shares per day on average. It charges 69 bps in fees per year.