Searching for Cash Cows? VanEck's MOO ETF Has You Covered

In the current market environment, many investors want the stability of value. They can snag exposure to just that in the agribusiness sector and the VanEck Vectors Agribusiness ETF (MOO).

MOO 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, farm/irrigation equipment and farm machinery, aquaculture and fishing, livestock, cultivation and plantations, and trading of agricultural products.

MOO highlights:

  • Positioned to Meet Growing Demand: Global population growth is driving increasing food demand and the need for efficient agricultural solutions.
  • A Pure Play with Global Scope: Companies must derive at least 50% of total revenues from agribusiness to be added to the Index.
  • Comprehensive Exposure: The Index targets companies across the agribusiness industry from seeds and fertilizers to farming equipment and food processors.

MOO Chart

The Stability of Agribusiness in Michigan

One prime example of the strengths in agribusiness is its stable employment history as seen in the state of Michigan. According to an article in the Lakeshore West Michigan, with “1 in 5 Michigan workers employed in agribusiness, the industry is the state’s second-largest behind manufacturing.”

Furthermore, the industry accounts for nearly 26,000 jobs and $300 million in labor income.

“While farms and fields are a big part of agribusiness, it only makes up about half of the jobs throughout the state,” says Joe Thiry, business solutions manager at West Michigan Works!. “Agribusiness encompasses every aspect of the food and beverage business, from start to finish, including production and distribution processes.”

Even during the height of the Covid-19 pandemic, the wheels of the agribusiness sector didn’t stop turning.

“If the past year taught us anything, it’s that everyone needs to eat and our local food systems are the most reliable. Even during economic booms and busts, our farms need to be able to produce food, which makes agriculture a nearly recession-proof industry,” says Allison Brink, executive director of Michigan Allied Poultry Industries. “Our family poultry farms, and all agriculture-related businesses, need more young talent interested in all aspects of ag so that we can continue to grow and produce healthy food here in Michigan.”

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