ETFs to Gain Post Deere's Q2 Earnings Strength

Deere & Co. DE reported robust second-quarter fiscal 2025 results, beating earnings and revenue estimates. Investors are now betting the worst is over for Deere as farm markets stabilize and frictions between China and the United States over tariffs ease. Shares of Deere jumped to new record highs following the results. This has put ETFs with the largest allocation to this farm equipment giant in focus. These funds include iShares MSCI Agriculture Producers ETF VEGI, Global X AgTech & Food Innovation ETF KROP, First Trust Indxx Global Agriculture ETF FTAG, Strive Natural Resources and Security ETF FTWO and VanEck Agribusiness ETF MOO.Deere’s earnings per share were $6.64, which beat the Zacks Consensus Estimate of $5.68. However, earnings fell 22% from the year-ago quarter. Net sales of equipment operations (comprising Agriculture & Turf, and Construction & Forestry) declined 17.9% to $11.17 billion and edged past the Zacks Consensus Estimate of $10.65 billion. Total net sales (including financial services and others) were $12.76 billion, down 16% year over year.For fiscal 2025, the farm equipment giant cut the lower end of its annual income guidance to $4.75-$5.5 billion from $5-$5.5 billion. The company expects Production & Precision Agriculture revenues to fall 15-20%, with declines of 10-15% in Small Agriculture & Turf and 10-15% in Construction & Forestry.The company is committed to investing $20 billion in the United States over the next decade, focusing on new product development, cutting-edge technologies and advanced manufacturing.ETFs in FocusiShares MSCI Global Agriculture Producers ETF (VEGI)iShares MSCI Agriculture Producers ETF provides global exposure to the companies that produce fertilizers and agricultural chemicals, farm machinery, packaged foods, and meats by tracking the MSCI ACWI Select Agriculture Producers Investable Market Index. Holding 130 stocks in its basket, Deere takes the top spot at a 26.6% share. American firms account for 62.6% of the assets, with Canada, India and Norway rounding off the next three spots (read: 5 Sector ETFs to Make the Most of the U.S.-China Trade Deal).iShares MSCI Agriculture Producers ETF is less popular and illiquid, with $96.8 million in AUM and around 23,000 shares in an average daily volume. It charges 39 bps in fees per year from investors and has a Zacks Rank #3 (Hold).Global X AgTech & Food Innovation ETF (KROP)Global X AgTech & Food Innovation ETF seeks to invest in companies advancing innovation and the use of technology in the agriculture and food industries. It tracks the Solactive AgTech & Food Innovation Index and holds 29 stocks in its basket. Deere occupies the top position with a 14.7% share. American firms account for 44% of the assets, whereas Canada, China and Japan round off the next three spots.Global X AgTech & Food Innovation ETF has amassed $8.8 million in its asset base and charges 50 bps in fees per year from investors. It trades in an average daily volume of 5,000 shares.First Trust Indxx Global Agriculture ETF (FTAG)First Trust Indxx Global Agriculture ETF follows the Indxx Global Agriculture Index, which is a market-capitalization weighted index designed to measure the performance of companies directly or indirectly engaged in improving agricultural yields. It holds 46 stocks in its basket, with Deere occupying the second position at 9.9%. The United States is the top country with a 33.3% share, whereas India and Germany hold 17.6% and 15.7% share, respectively (see: all Materials ETFs here). First Trust Indxx Global Agriculture ETF has accumulated $6.2 million in its asset base and is trading in an average daily volume of 1,000 shares. It charges 70 bps in annual fees.Strive Natural Resources and Security ETF (FTWO)Strive Natural Resources and Security ETF follows the Bloomberg FAANG 2.0 Select Index and offers exposure to companies engaged in national security and natural resource security. It holds 51 stocks in its basket, with Deere occupying the second position at 9.8%.Strive Natural Resources and Security ETF has accumulated $27.6 million in its asset base and trades in an average daily volume of 4,000 shares. It charges 49 bps in fees per year from investors.VanEck Agribusiness ETF (MOO) VanEck Agribusiness ETF is by far the most popular choice in the space, with an AUM of $599.5 million and an average daily volume of 44,000 shares. It tracks the MVIS Global Agribusiness Index, which offers exposure to companies involved in agri-chemicals, animal health and fertilizers, seeds and traits, farm/irrigation equipment and farm machinery, aquaculture and fishing, livestock, cultivation and plantations and trading of agricultural products.VanEck Agribusiness ETF holds 57 securities in its basket, with Deere occupying the top position with an 8.1% share. It charges 55 bps in annual fees.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deere & Company (DE): Free Stock Analysis Report VanEck Agribusiness ETF (MOO): ETF Research Reports iShares MSCI Agriculture Producers ETF (VEGI): ETF Research Reports First Trust Indxx Global Agriculture ETF (FTAG): ETF Research Reports Global X AgTech & Food Innovation ETF (KROP): ETF Research Reports Strive Natural Resources and Security ETF (FTWO): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks