ETF Talk: Satisfy Your Agricultural Appetite with MOO

Doug Fabian

Doug Fabian is known for his expert knowledge of ETFs, bear funds and enhanced index funds to profit in any market climate.

The world’s population could top nine billion people by the year 2050, according to projections, and all of those people are going to boost demand for food. Even today, developing nations and increasing populations are raising global demand for food production. As such, farming, and all its component stages, should benefit. The appropriately named Market Vectors Agribusiness (MOO) is an exchange-traded fund (ETF) which is invested in many of the farming industry’s various aspects and should profit from this need for heightened farm production.

This non-diversified fund seeks results which, before fees and expenses, match the performance of an index that tracks various fields within the farming industry, such as: agri-chemicals, fertilizers, seeds and traits; irrigation equipment and farm machinery; and agricultural products like flour, grain, meat, poultry and sugar, aquaculture and fishing, live stocks and plantations.

Though MOO has gained only 1.63% so far this year, the fund is capable of solid gains like 2012’s 11.90% rise. For investors interested in additional income, MOO offers a dividend yield of 1.80%. Although weather can have a big impact on agricultural output, the long-term prospects of this fund are compelling because of the continued certainty of global food consumption as the population grows.

Since MOO’s investments are spread out across the agricultural economy, this ETF has holdings in several sectors which assist and/or are assisted by farming. The biggest chunk, 52.47%, is invested in basic materials, while the remaining MOO assets are in consumer defensive, 27.51%, industrials, 17.86%, and consumer cyclical, 2.16%.

MOO’s top ten individually held companies comprise 58.25% of the fund’s total assets. And the top five of these holdings feature a fairly even distribution. In addition, these five holdings are companies that sell agricultural equipment, chemicals and seeds: Monsanto Company (MON), 8.33%; Syngenta AG (SYT), 7.60%; Deere & Company (DE), 6.71%; Potash Corp. of Saskatchewan, Inc. (POT.TO), 6.54%; and Archer-Daniels-Midland Company (ADM), 6.30%.

Exclusive  Six Socially Responsible Ways to Invest in Fertilizer Demand

There are risks inherent in investing in agriculture. One is that demand for agricultural products and supplies depends on commodity prices, such as grain. Another is the success of a harvest. Naturally, bad weather can be devastating. Although MOO’s performance can be hit in the short run due to these and other risks, demand for agricultural supplies ultimately will drive the fund’s performance in the long run, especially as rising populations demand increasing amounts of food.

Meanwhile, if you want my advice about buying and selling specific ETFs, including appropriate stop losses, please consider subscribing to my Successful Investing newsletter. As always, I am happy to answer any of your questions about ETFs, so do not hesitate to email me by clicking here. You may see your question answered in a future ETF Talk.

share on:
share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor