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Teucrium Launches 3 Commodity ETFs

Teucrium Trading, the Brattleboro, Vt.-based firm behind the $119 million Teucrium Corn Fund (NYSEArca:CORN), rounded out its offering of single-commodity exchange-traded funds with offerings targeting wheat, soybeans and sugar.

The Teucrium Wheat Fund (NYSEArca:WEAT), the Teucrium Soybean Fund (NYSEArca:SOYB) and the Teucrium Sugar Fund (NYSEArca:CANE) all come with annual expense ratios of 1.00 percent. The product launches bring to six the number of ETFs the company has brought to market that target individual commodities. Apart from CORN, the firm is marketing crude oil and natural gas ETFs.

Teucrium, founded by former commodities trader Sal Gilbertie, hopes that its products are designed in such a way to maximize potential profits at a time when a bull market for commodities of all kinds—hard and soft—is entering its second decade. Each of the funds’ exposure schemes takes into account the particular nuances of each market, Gilbertie has told IndexUniverse.

The three new ETFs and their exposure designs are:

  • The Teucrium Wheat Fund (NYSEArca:WEAT) will blend different months of CBOT wheat futures contracts in the portfolio, according to a regulatory filing Teucrium made last year. Specifically, the ETF will own the second-to-expire wheat contract, weighted at 35 percent; the third-to-expire contract, weighted at 30 percent; and the contract expiring in the December following the expiration month of the third-to-expire contract, also weighted at 35 percent.
  • The Teucrium Soybean Fund (NYSEArca:SOYB) will invest in a mix of CBOT soybean futures contracts, according to the Securities and Exchange Commission filing. The blend will include the second-to-expire soybean contract, weighted at 35 percent; the third-to-expire contract weighted at 30 percent; and the contract expiring in the November following the expiration month of the third-to-expire contract, also weighted at 35 percent.
  • The Teucrium Sugar Fund (NYSEArca:CANE) will invest in the global benchmark “Sugar No. 11” ICE futures contract, the filing said. CANE’s strategy will involve holding the second-to-expire sugar futures contract weighted at 35 percent; the third-to-expire contract weighted at 30 percent; and the contract expiring in the March following the expiration month of the third-to-expire contract.

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Most of Teucrium’s $126.6 million in assets are in CORN. The Teucrium Crude Oil Fund (NYSEArca:CRUD) has $5.4 million and the Teucrium Natural Gas Fund (NYSEArca:NGAS) has less than $2 million, according to data compiled by IndexUniverse.

The company is also planning to bring to market the Teucrium Agricultural Fund (NYSEArca:TAGS), which will be evenly invested in its existing ETFs, CORN, WEAT, SOYB and CANE, the company said earlier this year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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