ETFs in Spotlight as Trump Moves to Mobilize Defense Production Act

On Feb. 18, 2026, U.S. President Donald Trump signed a landmark executive order invoking the Defense Production Act (DPA) to secure the domestic supply of elemental phosphorus and glyphosate-based herbicides. Citing these materials as essential to "national security and military readiness," the order targets to reduce the United States' heavy reliance on foreign imports—specifically from China—for these critical industrial and agricultural inputs. 

This move puts an immediate spotlight on the few domestic players capable of scaling production, most notably Bayer AG BAYRY, which operates the only elemental phosphorus mine in the United States, as well as agricultural giants like Corteva Agriscience CTVA and fertilizer giants like The Mosaic Company MOS. Consequently, exchange-traded funds (ETFs) with heavy weightings in these companies and other industry leaders might see a surge in the days ahead.

Strategic Reshoring Boosting U.S. Industrial Resilience

The motivation behind signing this order is a mix of economic protectionism and defense strategy. Elemental phosphorus is a "choke point" material. It is required for everything from incendiary devices and flares to advanced semiconductors and lithium-ion batteries. Currently, since China dominates global production of this element, the U.S. defense industrial base is vulnerable to supply chain weaponization.

By invoking the DPA, the administration can provide direct loans and purchase guarantees to ensure the "corporate viability" of domestic producers. This creates a massive tailwind for companies like Bayer, which can now expand its Idaho mining operations under a federal safety net. Furthermore, by declaring glyphosate (the active ingredient in Roundup) a national security asset, the government effectively signals a push for regulatory relief and tariff protection against cheaper imports, benefiting domestic innovators like Corteva and FMC Corp. FMC as well as fertilizer leaders like Nutrien Ltd. NTR.

ETFs in the Spotlight

Investors looking to capture the benefits of this "America First" industrial mandate may consider monitoring the following ETFs, which bridge the gap between materials mining and agricultural technology.

iShares MSCI Agriculture Producers ETF VEGI

This fund, with net assets worth $108.7 million, offers exposure to 128 companies that produce fertilizers and agricultural chemicals, farm machinery, and packaged foods and meats. CTVA holds the second position in this fund, with 9.33% weightage, while NTR holds the third position, with 6.14% weightage. 

VEGI has surged 19.5% over the past year. The fund charges 39 basis points (bps) as fees. It traded at a volume of 0.05 million shares in the last trading session. 

VanEck Agribusiness ETF MOO

This fund, with net assets worth $954.1 million, offers exposure to 57 companies involved in agri-chemicals, animal health and fertilizers, seeds and traits, from farm/irrigation equipment and farm machinery, aquaculture and fishing, livestock, cultivation and plantations (including grain, oil palms, sugar cane, tobacco leaf, grapevines, etc.), and trading of agricultural products. BAYRY holds the second position in this fund, with 7.45% weightage, while CTVA holds the fourth position, with 6.43% weightage. NTR holds the fifth position, with 4.79% weightage.

MOO has soared 24% over the past year. The fund charges 55 bps as fees. It traded at a volume of 0.13 million shares in the last trading session. 

First Trust Materials AlphaDEX ETF FXZ

This fund, with net assets worth $332.7 million, offers exposure to 37 stocks that may generate positive alpha relative to traditional passive style indices through the use of the AlphaDEX screening methodology. MOS holds the fifth position in this fund, with 4.79% weightage.

FXZ has soared 30% over the past year. The fund charges 64 bps as fees. It traded at a volume of 0.04 million shares in the last trading session.

Global X AgTech & Food Innovation ETF KROP

This fund, with net assets worth $6.50 million, offers exposure to 30 companies involved in the provision of agricultural technologies related to precision agriculture, agricultural robots and automation, controlled environment agriculture (e.g., vertical farming, hydroponics), and agricultural biotechnology, as well as those involved in food innovation activities related to protein/dairy alternatives and food waste reduction. FMC holds the tenth position in this fund, with 4.16% weightage.

KROP has gained 13.9% over the past year. The fund charges 50 bps as fees. It traded at a volume of 0.001 million shares in the last trading session. 

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