Can the VanEck Agribusiness ETF Solve the Global Food Crisis?
The VanEck Agribusiness ETF portfolio companies focus on innovation, sustainability, and global food production challenges.
With the world population expected to reach nearly 10 billion by 2050, there’s a rising concern: the agriculture industry must increase food production by 70% compared to 2015. While this issue pressures the agriculture industry to meet production demand and supply, the VanEck Agribusiness ETF (MOO 0.00%↑) is well-positioned to benefit from the need for efficient agricultural solutions.
Why? The answer lies in the MOO’s portfolio. For example, Nutrien, a major fertilizer company and 6.11% of the ETF, is addressing current industry shortages: constrained supply and high fertilizer costs. Similarly, Deere & Co. (9.56% of a holding) leads in precision agriculture and developing lower environmental impact products, aligning with the need for technological solutions to boost agricultural productivity.
Can MOO actually solve the world’s food production challenge? Read on for more.
Overview of VanEck Agribusiness ETF
Founded in August 2007 by Van Eck Associates Corporation, an investment management firm established by John van Eck in 1955, the VanEck Agribusiness ETF (MOO 0.00%↑) aims to expose investors to the global agribusiness value chain, including seeds, fertilizers, farming equipment, and food producers. In essence, MOO seeks to replicate the performance of the MVIS Global Agribusiness Index (MVMOOTR).
Since its inception, MOO has sought to meet the increasing global food demand due to population growth, a problem we cannot deny now. To achieve this, the fund saw the market gap — the need for agricultural efficiency to meet rising food demand while addressing challenges like declining farmland per capita. If I can say so, the fund understood the assignment long before the talk about sustainability, ESG, and SDG became a trend.
Interestingly enough, VanEck has been known for its expertise in global investing, particularly in hard assets, emerging markets, and specialized fixed-income strategies, before shifting to AgriTech. Currently, the firm continues to focus on providing intelligently designed investment strategies. For instance, companies in the fund's underlying index must derive at least 50% of their revenues from agribusiness, ensuring focused exposure to the sector.
As of January 7, 2025, the company's net assets are $569.35 million.
MOO’s Portfolio Companies
While the VanEck Agribusiness ETF includes many AgriTech companies, several stand out. Here are our top five picks:
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