We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
ETFs in Spotlight as Deere Slumps After Q4 Earnings Fall 14% Y/Y
Read MoreHide Full Article
Shares of Deere Company (DE - Free Report) declined 5.7% on the bourses yesterday, after this tractor manufacturer’s fourth-quarter fiscal 2025 earnings deteriorated 14% on a year-over-year basis due to higher production costs and tariff impacts. The bottom line also missed the Zacks Consensus Estimate by 0.8%.
With the U.S. agricultural sector already struggling over the past couple of years, a situation that has only intensified since April 2025, the demand for large agricultural equipment remains weak, as do the revenue prospects for manufacturers like DE.
Amid this backdrop, exchange-traded fund (ETF) investors with significant allocations to ETFs holding DE may want to revisit their portfolios to avoid substantial losses if demand in the sector continues to decline.
But before diving straight into these ETFs, let us check how DE performed in the fiscal fourth quarter in terms of other metrics.
A Quick Sneak Peek Into DE’s Q4 Results
Deere Company’s net sales from equipment operations rose 14% year over year, surpassing the Zacks Consensus Estimate by 5.9%. However, its gross profit fell 2% due to a 21% increase in quarterly cost of sales.
Segment wise, sales from its Production & Precision Agriculture unit rose 10% year over year, while those from the Small Agriculture & Turf unit increased 7%. Construction & Forestry sales surged 27% year over year, while revenues from Deere’s Financial Services division went up 2%.
The company’s cash flow from operating activities totaled $7.46 billion in fiscal 2025, down from $9.23 billion a year ago.
Looking ahead, Deere Company expects to generate net income in the range of $4.00-$4.75 billion during fiscal 2026. This implies a substantial deterioration from fiscal 2025 reported net income of $5.03 billion.
This fund, with assets worth $85.7 million, offers exposure to 128 companies that produce fertilizers and agricultural chemicals, farm machinery, and packaged foods and meats. Deere Company holds the first spot in this fund, with 25.5% weightage.
VEGI has gained 11% year to date. The fund charges 39 basis points (bps) as fees.
This fund, with assets worth $578.8 million, provides exposure to 56 companies involved in agri-chemicals, animal health and fertilizers, seeds and traits, from farm/irrigation equipment and farm machinery, aquaculture and fishing, livestock, cultivation and plantations, and trading of agricultural products. Deere Company holds the first spot in this fund, with 8.15% weightage.
MOO has gained 12.8% year to date. The fund charges 55 bps as fees.
Strive Natural Resources and Security ETF (FTWO - Free Report)
This fund, with assets worth $53.2 million, provides exposure to companies from fuel, aerospace & defense, agriculture, nuclear, and gold & precious metals industries. Deere Company holds the second spot in this fund, with 8.32% weightage.
FTWO has surged 38.7% year to date. The fund charges 49 bps as fees.
First Trust Indxx Global Agriculture ETF (FTAG - Free Report)
This fund, with assets worth $6.2 million, provides exposure to 46 companies which are directly or indirectly engaged in improving agricultural yields. Deere Company holds the second spot in this fund, with 10.01% weightage.
FTAG has risen 12.9% year to date. The fund charges 70 bps as charges.
This fund, with assets worth $6.30 million, provides exposure to 31 companies involved in the provision of agricultural technologies (AgTech) related to precision agriculture, agricultural robots and automation, controlled environment agriculture (e.g., vertical farming, hydroponics), and agricultural biotechnology, as well as those involved in food innovation activities related to protein/dairy alternatives and food waste reduction. Deere Company holds the fourth spot in this fund, with 11.84% weightage.
KROP has gained 8.2% year to date. The fund charges 50 bps as fees.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ETFs in Spotlight as Deere Slumps After Q4 Earnings Fall 14% Y/Y
Shares of Deere Company (DE - Free Report) declined 5.7% on the bourses yesterday, after this tractor manufacturer’s fourth-quarter fiscal 2025 earnings deteriorated 14% on a year-over-year basis due to higher production costs and tariff impacts. The bottom line also missed the Zacks Consensus Estimate by 0.8%.
With the U.S. agricultural sector already struggling over the past couple of years, a situation that has only intensified since April 2025, the demand for large agricultural equipment remains weak, as do the revenue prospects for manufacturers like DE.
Amid this backdrop, exchange-traded fund (ETF) investors with significant allocations to ETFs holding DE may want to revisit their portfolios to avoid substantial losses if demand in the sector continues to decline.
But before diving straight into these ETFs, let us check how DE performed in the fiscal fourth quarter in terms of other metrics.
A Quick Sneak Peek Into DE’s Q4 Results
Deere Company’s net sales from equipment operations rose 14% year over year, surpassing the Zacks Consensus Estimate by 5.9%. However, its gross profit fell 2% due to a 21% increase in quarterly cost of sales.
Segment wise, sales from its Production & Precision Agriculture unit rose 10% year over year, while those from the Small Agriculture & Turf unit increased 7%. Construction & Forestry sales surged 27% year over year, while revenues from Deere’s Financial Services division went up 2%.
The company’s cash flow from operating activities totaled $7.46 billion in fiscal 2025, down from $9.23 billion a year ago.
Looking ahead, Deere Company expects to generate net income in the range of $4.00-$4.75 billion during fiscal 2026. This implies a substantial deterioration from fiscal 2025 reported net income of $5.03 billion.
DE-Heavy ETFs in Spotlight
iShares MSCI Agriculture Producers ETF (VEGI - Free Report)
This fund, with assets worth $85.7 million, offers exposure to 128 companies that produce fertilizers and agricultural chemicals, farm machinery, and packaged foods and meats. Deere Company holds the first spot in this fund, with 25.5% weightage.
VEGI has gained 11% year to date. The fund charges 39 basis points (bps) as fees.
VanEck Agribusiness ETF (MOO - Free Report)
This fund, with assets worth $578.8 million, provides exposure to 56 companies involved in agri-chemicals, animal health and fertilizers, seeds and traits, from farm/irrigation equipment and farm machinery, aquaculture and fishing, livestock, cultivation and plantations, and trading of agricultural products. Deere Company holds the first spot in this fund, with 8.15% weightage.
MOO has gained 12.8% year to date. The fund charges 55 bps as fees.
Strive Natural Resources and Security ETF (FTWO - Free Report)
This fund, with assets worth $53.2 million, provides exposure to companies from fuel, aerospace & defense, agriculture, nuclear, and gold & precious metals industries. Deere Company holds the second spot in this fund, with 8.32% weightage.
FTWO has surged 38.7% year to date. The fund charges 49 bps as fees.
First Trust Indxx Global Agriculture ETF (FTAG - Free Report)
This fund, with assets worth $6.2 million, provides exposure to 46 companies which are directly or indirectly engaged in improving agricultural yields. Deere Company holds the second spot in this fund, with 10.01% weightage.
FTAG has risen 12.9% year to date. The fund charges 70 bps as charges.
Global X AgTech & Food Innovation ETF (KROP - Free Report)
This fund, with assets worth $6.30 million, provides exposure to 31 companies involved in the provision of agricultural technologies (AgTech) related to precision agriculture, agricultural robots and automation, controlled environment agriculture (e.g., vertical farming, hydroponics), and agricultural biotechnology, as well as those involved in food innovation activities related to protein/dairy alternatives and food waste reduction. Deere Company holds the fourth spot in this fund, with 11.84% weightage.
KROP has gained 8.2% year to date. The fund charges 50 bps as fees.