Market Overview

Market Vectors Agribusiness ETF to Get a New Index

The Market Vectors Agribusiness ETF (NYSE: MOO), long the dominant ETF tracking farm equipment and fertilizer producers, will switch indexes on or about March 18. Currently using the DAXglobal Agribusiness Index (DXAG), MOO will switch to the Market Vectors Global Agribusiness Index (MVMOOTR).

MOO, which has $5.79 billion in assets under management, is not the first Market Vectors ETF to go the self-indexing route. Last year, the ETF sponsor announced index changes to its own indexes for the popular Market Vectors Coal ETF (NYSE: KOL) and the Market Vectors Gaming ETF (NYSE: BJK).

The Market Vectors Global Agribusiness Index uses the Market Vectors index methodology that focuses on investability, diversification and pure-play exposure to the relative asset class, according to a statement issued by the firm.

Popular Market Vectors ETFs such as the Market Vectors Oil Services ETF (NYSE: OIH), the Market Vectors Brazil Small-Cap ETF (NYSE: BRF) and the Market Vectors Indonesia ETF (NYSE: IDX) use the same methodology.

To be considered for inclusion in the Market Vectors Global Agribusiness Index, companies must generate at least half their sales from the global agribusiness industry, said Market Vectors in the statement. MOO's top holdings currently include Monsanto (NYSE: MON), Deere (NYSE: DE) and Potash Corp. of Saskatchewan (NYSE: POT).

MOO's top-10 holdings currently combine for 57.1 percent of the ETF's weight, but the new index features a capping feature that could lead to a more diverse lineup and one that is less dependent on just a few names to drive the ETF's returns. Overall, MOO is currently home to 52 stocks. Monsanto has the largest weight at 8.22 percent while Olam International (OTC: OLMIY) is the smallest at 0.02 percent.

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