VEGI: Global Agricultural Stocks Remain Undervalued In Spite Of Recent Outperformance

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Summary

  • VEGI invests in agricultural stocks on a global basis.
  • The fund has recently out-performed, helped by its heavier-than-average exposure to characteristically defensive stocks.
  • The fund likely remains undervalued in spite of recent out-performance, with the potential for both a high organic IRR and an expansion in the forward earnings multiple.

Wide shot of combines harvesting wheat with storm clouds in background during harvest on summer evening

Thomas Barwick

iShares MSCI Global Agriculture Producers ETF (NYSEARCA:VEGI) is an exchange-traded fund that provides investors with direct exposure to publicly traded companies that produce fertilizers and agricultural chemicals, farm machinery, and packaged foods, and meats. The expense ratio is 0.39%, mostly in

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Providing commentary and analysis, principally focused on global macro, foreign exchange, and equities as an asset class. Primary interests include equity investing from an international perspective, and FX fair values.

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