ETF Idea Look out for this sector in face of rising inflati | FSMOne SG - Research Highlights

ETF Idea

Look out for this sector in face of rising inflation

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• Commodity prices, including agricultural commodities, have been rising steadily since last year. The momentum appears well supported as rising inflation has been rippling through the global economy.

• Agricultural prices could extend their climb in 2022 as adverse weather – driven by La Niña, threatens to lower crop yield returns.

• Additionally, broader secular trends such as population growth and rising income levels, underpin the industry’s long-term growth prospects.

• The VanEck Vectors Agribusiness ETF (NYSE:MOO) provides investors with the opportunity to hedge against inflation, and leverage on the exponential growth in the global population, which is driving up food demand.

• Our 2023 target price is USD 115, and this offers investors an upside potential of about 25%, based on the closing price of USD 92.15 on 23 February 2022.

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: VanEck Vectors Agribusiness ETF (NYSE:MOO)