VEGI: Overpriced And Overconcentrated

  • The iShares MSCI Agriculture Producers ETF offers thematic exposure to agriculture but is heavily concentrated in just a few stocks. VEGI's largest holding, Deere & Co., makes up over 26% of total assets and trades at a steep valuation despite highly cyclical earnings. Agriculture is a vital sector, but many of VEGI's holdings operate on thin margins and face volatile cash flows due to global commodity dynamics.