The Agriculture ETF (MOO) Will See Continued Strength On Agribusiness Acquisitions

“Fueled by top components like Potash (POT), Monsanto (MON), Mosaic (MOS) and Deere (DE), the Market Vectors Agribusiness ETF (MOO) continues to gain momentum. (MOO) is a well-balanced, low-cost, tax-efficient way to gain exposure to 46 global agribusiness firms. Many of the companies in the portfolio are non-U.S. based, including some in Malaysia and Indonesia, offering investors access to rapidly growing markets that are not generally easy to tap into,” Don Dion Reports From Dion Money Management.

Dion goes on to say, “Lower costs for raw materials have also benefited many of MOO’s top components – from (POT) to (DE) – as revenues have outpaced many analysts’ expectations. Demand from developing countries like China and India should also continue benefit the high-quality agribusiness firms that line MOO’s portfolio. Recently, bidding wars have also helped to fuel MOO’s performance. Earlier this month, MOO benefited from a takeover tussle involving four of the fund’s components: Yara International, CF Industries(CF), Terra Industries (TRA) and Agrium (AGU). Eventually, CF Industries came from behind to win the battle for Terra after fellow suitor Yara announced it would not increase its $4.1 billion bid.”

“(MOS), which makes up nearly 8% of MOO’s portfolio, has also been cited as a potential  target. Firms like Cargill, Vale (VALE) and BHP (BHP) have all been rumored to have the potash firm in their sights. So, MOO continues to benefit from acquisitions, emerging-market demand and an improving global market. During the one-month period ending Mar. 24, MOO jumped 3.88%. Year to date, this agriculture ETF is up 2.67%. Perhaps most impressively, during the one-year period ending Mar. 24, MOO rallied more than 53%,” Dion Reports.

With the agriculture business booming from worldwide demand there is great reason to believe the Market Vectors Agribusiness ETF (MOO) will benefit for many years to come.  Here are some more details on the ETF including the holdings in the ETF below:

The investment ETF (MOO) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the DAXglobal Agribusiness index. The fund normally invests at least 80% of total assets in equity securities of U.S. and foreign companies primarily engaged in the business of agriculture, which derive at least 50% of their total revenues from agribusiness. Such companies may include small- and medium-capitalization companies. It is nondiversified.

Holdings As of March 26, 2010

Related posts:

1. Market Vectors Agribusiness ETF Takes A Hit As UBS Downgrades Top Holders (MOO)
2. MOO, A Great ETF To Play The Agriculture Market
3. Traders bullish on agriculture ETF “MOO”

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