A conservative and long-term approach to investing in agriculture stocks through an exchange traded fund (ETF) is possible with Market Vectors Agribusiness (NYSEArca: MOO).
MOO has rallied 86% since its March lows, says Kevin Cook for ONN tv. MOO is an interesting way to play commodity shares because it does not use futures contracts or commodity swaps to invest. [How did 2009 pan out for commodity ETFs?]
The latest crackdown on the regulation for commodity-focused ETFs that invest in futures contracts is another reason investors who want to sidestep that would want to think about equity-based commodity funds. [How the CFTC affected ETFs.]
MOO diversifies between major food and seed manufacturers, as well as exposure to seed, fertilizer, machinery and food competitors. The global diversity among the companies means you gain broad expertise across many geographies and economies addressing the challenges of feeding the world. [The outlook for agriculture stocks.]
For more stories about agriculture, visit our agriculture category.
- Market Vectors Agribusiness (NYSEArca: MOO): up 4.4% in the last month
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.