Why This Agriculture ETF Could Outperform in 2012

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Market Vectors Agribusiness ETF (NYS: MOO) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Market Vectors Agribusiness and see what CAPS investors are saying about the ETF right now.

Market Vectors Agribusiness facts


August 2007

Total Assets

$5.53 billion

Investment Approach

Seeks to replicate the performance of the DAXglobal Agribusiness Index, which is composed of companies involved in the agriculture business that are traded on leading global exchanges.

Expense Ratio


Dividend Yield


3-Month / 1-Year / 3-Year Returns

9.8% / (11.4%) / 20.1%

Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight

Monsanto (8.5%)
Deere (7.5%)
Syngenta (6.3%)

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 97.5% of the 672 members who have rated Market Vectors Agribusiness believe the ETF will outperform the S&P 500 going forward.

One of those bulls, Mike00m, succinctly summed up on the bull case for our community a few years ago:

As food prices surge around the world it should create renewed interest in agriculture and suppliers to agriculture. Increased food prices and larger margins will allow produces to reinvest into more efficient equipment, benefiting suppliers. Additionally, the shift to Bio fuels is increasing demand for agricultural equipment and chemicals.

But before you run out and start gobbling up shares, some of Market Vectors Agribusiness' peers might actually be better suited to your own individual investing profile.

PowerShares Global Agriculture (NAS: PAGG) , for example, sports a portfolio whose stocks average higher historical earnings growth. And risk-averse Fools might prefer PowerShares DB Agriculture's (NYS: DBA) lower beta. However, when you consider that Market Vectors Agribusiness sports a lower expense ratio than each of those alternatives, the ETF seems nicely suited for cost-conscious investors looking to get into the space.

Owning exceptional ETFs is a surefire way to secure your financial future, so don't just stop your research with Market Vectors Agribusiness. If you need some help, our special report on ETFs highlights three funds that are poised to soar in the next recovery. It's 100% free, but won't last forever, so check it out today!

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Syngenta and creating a synthetic long position in Monsanto. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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