Topic: How To Invest

Pat: With wheat prices soaring, is Market Vectors Global Agribusiness ETF a good buy?

Article Excerpt

Market Vectors Global Agribusiness ETF, $44.20, symbol MOO on New York (Shares outstanding: 39.1 million; Market cap: $1.7 billion), aims to track the DAXglobal Agribusiness Index. The index includes 46 agricultural companies from around the world. To be included in the index, a company must be publicly traded, have a market cap over $150 million U.S., and meet certain minimum trading requirements. The index contains five major sub-sectors: agriculture chemicals and fertilizers (39.3%), agricultural product operations (32.6%), agricultural equipment (15.2%), livestock operations (10.1%) and biofuels, including ethanol and biodiesel (2.7%). Geographically, the DAXglobal Agribusiness Index is broken down as follows: the U.S., 45.8%; Singapore, 14.7%; Canada, 8.5%; Switzerland, 8.0%; Germany, 4.5%; Malaysia, 4.1%; Japan, 4.0%; Norway, 3.3%; Hong Kong, 1.8%; Indonesia, 1.8%, the U.K., 1.2%; and other countries, 2.3%. Market Vectors Global Agribusiness ETF was launched on August 31, 2007, at $40 per share. The fund holds 42 stocks and has an expense ratio of 0.59%. The units yield 1%. The…