As an exchange-traded fund (ETF) tied to the global agriculture industry, the VanEck Vectors Agribusiness ETF (MOO) is in a fairly concentrated area of the market, but one with significant potential.
According to a 2015 McKinsey & Co. report on global opportunities in the agriculture field, food and agribusiness — agriculture conducted using commercial and technological means — had a total global footprint of $5 trillion. Feeding the global population has become an important issue again in recent years, and it is attracting the attention of global investors.
On a broader scale, the agribusiness industry, MOO‚??s primary focus, has been growing a steady clip. The McKinsey & Co. report stated that global investments in the food and agribusiness sector grew threefold to more than $100 billion from 2004 to 2013.
However, on an individual level, MOO has also been seeing a significant amount of attention from large institutional investors. For example, IFP Advisors boosted its position in MOO by over 6,000%, among several other institutional purchases.