A reader asked about MOO, the Agriculture ETF;
I have not looked at the name much since I wrote a very popular entry
(usually in the top 5 most read every week) about MOO back in early
September [This MOO For You? An ETF to Play the Agriculture Boom]
Upon revisiting this name, nearly a quarter later, I see its a living organism that is changing. It used to have 40 names, now its down to 37, and its chemicals (read: fertilizer) exposure has increased substantially. I actually like this ETF even more now than I did when I first saw it (back then it had a lot more equipment exposure and some other names I did not recognize). It also gives you some extra international exposure with names that do not trade in the USA.
As I told the reader, it's actually quite an easy and painless way to get exposure in the group without buying multiple names - I created my own narrow MOO for the fund, i.e. I don't hold top holding Monsanto (NYSE:MON) simply because while I think its a great holding and very stable, its very rich - I think there is more upside in other names; same with Agco and CNH Global over Deere, etc.
I will post the top holdings as of 10/31 here so that I can look back it in a quarter and see how its evolving
- Mosaic (NYSE:MOS) 9.6%
- Monsanto (MON) 8.6%
- Potash (NYSE:POT) 8.3%
- Deere (NYSE:DE) 7.3%
- Komatsu 7.2% (this is a Japanese equipment maker, think Deere/Caterpillar)
- Yara Int'l 5.1% (overseas name, not familiar with this one)
- IOI 5.1% (overseas name)
- Wilmar 4.7% (overseas name)
- CNH Global (NYSE:CNH) 4.5%
- Bunge (NYSE:BG) 4.4%
From its peak of $52, the ETF has fallen about 8.5% in the correction which is inline with most of the major indexes, but has been outperforming by a large measure on the way up.
MOO 1-year chart