VanEck Vectors Agribusiness ETF: Still Has Legs, But Valuation A Concern

Summary

• MOO offers access to more than 50 global companies in the agribusiness landscape, although US-based companies account for the bulk of the holdings.
• The performance of the food price index over the last year reiterates the pricing strength of this business and the planting estimates for key Agri commodities such as soybean.
• Valuations of MOO are very pricey, the dividend yield is not the most attractive, and the expense ratio could go up after May 1 after the expiry of the cap.
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The VanEck Vectors Agribusiness ETF (NYSEARCA:MOO) is a $1.1bn sized ETF designed to provide access to more than 50 companies involved in the vast panoply of the agricultural landscape. The ETF considers companies dealing with agri-chemicals, seeds, fertilizers, animal health, farm/irrigation equipment, aquaculture and fishing, livestock, cultivation, and plantations (including

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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