For investors seeking momentum, iShares MSCI Agriculture Producers ETF VEGI is probably on the radar now. The fund just hit a 52-week high and is up 42.7% from its 52-week low price of $33.13 per share.
But are there more gains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better sense of where it might head.
VEGI in Focus
The underlying MSCI ACWI Select Agriculture Producers Investable Market Index measures the equity performance of companies in both developed and emerging markets that are primarily engaged in the business of agriculture at or near the initial phase of agricultural input and production. The fund charges 39 basis points (bps) in annual fees (See: all Materials ETFs here).
What Led to the Rise?
Shares of Deere & Company jumped more than 11% after upbeat earnings and stronger guidance, lifting agriculture-related ETFs. VEGI ETF gained on Feb. 19 as Deere, one of its key holdings, rallied sharply following the results. The move reflected renewed investor optimism toward farm equipment and broader agriculture stocks.
More Gains Ahead?
VEGI may continue its strong performance in the near term, with a positive weighted alpha of 31.39 (as per Barchart.com), which suggests a further rally.
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iShares MSCI Agriculture Producers ETF (VEGI): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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