VanEck Agribusiness ETF's Average People Pillar and Process Pillar ratings result in a Morningstar Medalist Rating of Neutral. The portfolio maintains a cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy’s management team earns an Average People Pillar rating. The strategy earns an Average Process Pillar rating.  Low quality exposure is attributed to stocks with higher financial leverage and lower profitability. And low volatility exposure is rooted in stocks that have a lower standard deviation of returns. The strategy's parent organization earns the firm an Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

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Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. VanEck Agribusiness ETF earns an Average Process Pillar rating. The most meaningful contributor to the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. 

The investment strategy as stated in the fund's prospectus is:  The investment seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS® Global Agribusiness Index.  The fund normally invests at least 80% of its total assets in securities that comprise the fund's benchmark index. The index includes equity securities of companies that generate at least 50% of their revenues from agri-chemicals, animal health and fertilizers, seeds and traits, from farm/irrigation equipment and farm machinery, aquaculture and fishing, livestock, and cultivation and plantations and trading of agricultural products. It is non-diversified. 

 The portfolio is overweight in consumer defensive and healthcare relative to the category average by 28.0 and 16.5 percentage points, respectively. The sectors with low exposure compared to category peers are energy and basic materials, underweight the average by 27.8 and 19.3 percentage points of assets, respectively. The strategy owns 57 securities and is relatively concentrated. Specifically, 55.2% of the strategy's assets are housed within the top 10 holdings, as opposed to the typical peer's 23.9%. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 12% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Average

Process

VanEck’s equity team is valuable but does not stand out as one of the industry's best, warranting an Average People Pillar rating. The fund takes a solo manager approach, with Peter Liao as the only listed manager at the helm, who brings 18 years of portfolio management experience to the table. They manage over 25 strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha relative to the category median in aggregate. With only one manager listed on the strategy, the passive strategy is vulnerable to key-person risk. 

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

People

VanEck’s ownership structure and specialization make it unique among industry peers. The firm’s founding family and namesake still have control, and its product lineup still reflects its legacy as a specialist in niche market segments. VanEck earns an Average Parent Pillar rating. 

Founded by John van Eck in 1955, the firm staked its claim in the industry by capitalizing on burgeoning markets. Starting with the opening of Western Europe to U.S.-based investors in the wake of the Marshall Plan, VanEck’s largest and most successful products provide exposure to areas of the market that are off the beaten path, such as hard assets, emerging-markets debt, and below-investment-grade-rated corporate debt.

Through its history, VanEck has taken an opportunistic approach to product development. For instance, since 2018, VanEck has launched strategies that provide exposures ranging from international REITs to companies involved in video game development. Regardless of where their reach takes them, however, VanEck builds a case that the strategy will be relevant over the long term and that its risks must be easy to understand. However, not all its products catch on, and the firm has shuttered several offerings in the last decade. 

VanEck remains a privately held firm, wholly owned by CEO Jan van Eck and his family. Although this enables the firm to focus on the long term and the firm offers some employees participation in profits, the firm hasn’t used equity as a recruiting and retention tool and introduces some key-person risk in the executive suite.

Parent

VanEck Vectors Agribusiness ETF

MOO tracks a market-cap-weighted index of companies that generate revenues from the agribusiness sector.

VanEck Agribusiness ETF is in a bearish trend, but the upside potential is attractive compared to downside risks. Grain prices remain near lows, with soybean, corn, and wheat futures recovering but still not far above their recent lows. Soft commodities, such as sugar, coffee, cocoa, cotton, and orange juice, have seen significant gains in 2023 and continue to rally in 2024.

MOO: Diversified Exposure To Agribusiness

Looking for broad exposure to the Materials - Agribusiness segment of the equity market? You should consider the VanEck Agribusiness ETF (MOO), a passively managed exchange traded fund launched on 08/31/2007.

Should You Invest in the VanEck Agribusiness ETF (MOO)?

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Soft commodities gained 24.04% in 2023, while grains fell 13.04%. The January WASDE report was bullish for supplies but bearish for agricultural commodity prices. The VanEck Agribusiness ETF could offer value as it declined in 2023 and early 2024, with a 3.15% dividend yield.

MOO: Buying Agribusiness On The Dip

VanEck Agribusiness ETF is currently a victim of investor sentiment toward the farming and agriculture sector. I like the potential for the MOO ETF here long term, but it is not close to showing price or fundamental catalysts that would prompt me to own it now. There will likely be a time for this well-constructed ETF, but probably when the market finally looks away from the sex appeal of tech stocks.

MOO: There's A Big Problem On The Farm

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Deere & Co (DE) reported robust fourth-quarter fiscal 2023 results, beating estimates on both counts. It provided disappointing outlook for fiscal 2024 profits amid concerns about slowing equipment demand.

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MOO is a 16-year-old ETF that has seen many cycles, given that it invests in the agri-business segment of the equity market. The portfolio is structured the way I like it and is reasonably valued, but that doesn't matter to investors right now. MOO is on my watchlist to move into at a later point in the business cycle. I rate it a hold for now.

MOO: Cyclical Thematic ETF That Will Have Its Day, Just Not Right Now

VanEck Agribusiness ETF provides investors with exposure to agribusiness sector. MOO has a long history of underperforming the S&P 500. The agribusiness is generally challenging due to high levels of competition.

MOO: Not My Preferred Way To Play Agriculture

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Agribusiness is facing challenges due to climate change and geopolitical conflicts, but remains a growing industry with significant earnings potential. The war in Ukraine has disrupted global agribusiness, leading to increased volatility in agricultural commodity prices. The VanEck Agribusiness ETF offers value at its current share price and is a compelling investment opportunity for long-term growth.

MOO ETF: Agribusiness Has Upside

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Last Friday, Deere (NYSE: DE), the agriculture equipment behemoth, delighted analysts and investors with stellar fiscal first-quarter results. Deere said it earned $6.55 a share on $11.4 billion in equipment sales, well ahead of the $5.57 a share and $11.3 billion in equipment sales analysts expected.

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Feeding the world gets more expensive for key reasons: Feeding the world is becoming fueling the world. Grain and agricultural prices have retreated but remain at multi-year highs.

News for VanEck Vectors Agribusiness ETF ETF (MOO)