Agribusiness ETF Showing Signs of Life

The latest rendition of an exchange traded fund going from zero to hero might just include the Market Vectors Agribusiness ETF (NYSEArca: MOO).

Sure, it is just one day, but on Tuesday, a block of $275 million traded in MOO as the ETF rose 0.7% on volume that was nearly 800% above its historical average. Tuesday’s close at $54.65 puts MOO in position to see its first close above $55 in nearly a year. The ETF has not closed above $56 since early 2013. [Some ETFs Still not Near Pre-Crisis Highs]

MOO has been the epitome of a laggard, missing out on nearly all of the rally in U.S. stocks over the past three years. Over the past three years while the Materials Select Sector SPDR (NYSEArca: XLB) is up nearly 29% and the S&P 500 is higher by more than 51%, MOO has barely nudged. There are signs MOO may be awakening from its long slumber, namely a 3.1% gain over the past month.

Among MOO’s top-five holdings, a group that combines for over 37% of the ETF’s weight, two stocks have posted gains of more than 5% over the past month. Monsanto (NYSE: MON) is the only of the five that is down, but just half a percent.

Importantly, MOO has outpaced diversified materials ETFs over the past month, a positive sign as investors consider the materials sector as late-cycle destination. [Materials ETFs Looking Strong]