![[tractor mowing wheat]](https://cdn.stockinvestor.com/q:i/r:1/wp:1/w:2000/u:https://stage8.stockinvestor.com/wp-content/uploads/shutterstock_48384775.jpg)
There are very few industries that will always have a place in the market.
Among those few, agriculture is perhaps the most prominent. This is because agriculture is the backbone of modern society. Civilization, as we know it, would not exist without this marvel of human innovation, and our lives would no doubt carry more hardship.
Agriculture is a foundational industry, and, in turbulent markets, it’s beneficial to return to those roots. And there’s no better way to get exposure to such an important market than through the iShares MSCI Agriculture Producers ETF (VEGI).
VEGI tracks a market-cap-weighted index of companies that are sensitive to agricultural commodity prices. The fund targets exposure to the initial phase of commodity production within the global agriculture space. It includes companies involved in the production of fertilizers, agricultural chemicals, farm machinery and packaged food and meats.
VEGI includes equities from both developed and emerging markets, and invests at least 40% in issuers organized, located or doing business outside the United States. The fund is passively managed, and the index is reviewed quarterly in February, May, August and November.
The fund has assets under management of approximately $90.76 million and an expense ratio of 0.39%. It is currently down 1.19% over the last month and down 3.07% over the last three months, but up 12.58% year to date.
Top holdings include Deere & Company (NYSE: DE), 24.45%; Corteva Inc (NYSE: CTVA), 9.12%; Archer-Daniels-Midland Company (NYSE: ADM), 6.24%; Nutrien Ltd. (NYSE: NTR), 6.11%; CF Industries Holdings, Inc. (NYSE: CF), 3.10%; Kubota Corporation (6326.T), 2.68%; Bunge Global SA (NYSE: BG), 2.45%; Mosaic Company (NYSE: PTC), 2.33%; Mowi ASA (MOWI.OL), 2.08% and CNH Industrial NV (NYSE: CNH), 1.99%.
Chart from Stockcharts.com
While investing in agriculture could be a good investment, it might not be right for your portfolio’s diet. Investors should always do their due diligence before adding any stock, fund or ETF to their portfolio.
As I write each week, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.
