Grain prices and the size of the harvest both impact the performance of the sector, and the performance of the ETF. MOO derives 50% of its profit from the actual agriculture sector, while the rest comes from farm machinery, supplies such as seeds and fertilizer, livestock, chemicals and biofuels, reports Commodity HQ. For a pure agriculture play, the PowerShares DB Agriculture Fund (NYSEArca: DBA) is an option. The IQ Global Agribusiness Small Cap ETF (NYSEArca: CROP) invests in agribusiness companies similar to MOO, but focuses in on smaller companies. MOO is up 10% year-to-date, while CROP is up 9%. DBA is up 0.6% for the year.
Market Vectors Agribusiness
Tisha Guerrero contributed to this article.