iShares MSCI Agriculture Producers ETF

VEGI

Market cap $112M

VEGI hits a new 52-week high after Deere (DE) earnings sparked a rally in agriculture stocks, signaling continued momentum in the agri ETF space.

Trump invokes the Defense Production Act to secure phosphorus and glyphosate. MOO could gain as domestic agricultural and materials players ramp up.

The iShares MSCI Agriculture Producers ETF offers thematic exposure to agriculture but is heavily concentrated in just a few stocks. VEGI's largest holding, Deere & Co., makes up over 26% of total assets and trades at a steep valuation despite highly cyclical earnings. Agriculture is a vital sector, but many of VEGI's holdings operate on thin margins and face volatile cash flows due to global commodity dynamics.

Deere & Co (DE) reported robust first-quarter fiscal 2024 results, beating earnings and revenue estimates. However, it slashed its annual profit outlook.

VEGI is an agricultural ETF that invests in agricultural stocks across various sectors. The ETF has a high concentration in its top holdings, with Deere representing 22% of the total fund. VEGI remains a Hold, but is one I'm watching for when the market looks beyond tech to reasonably-valued market niches like this one.

Deere & Co (DE) reported robust fourth-quarter fiscal 2023 results, beating estimates on both counts. It provided disappointing outlook for fiscal 2024 profits amid concerns about slowing equipment demand.