Teucrium Corn Fund (CORN)

Overview

The Teucrium Corn Fund (CORN) provides investors with exposure to corn futures contracts. It does not directly hold physical corn. The fund seeks to reflect the daily changes in percentage terms of a weighted average of the closing settlement prices for three actively traded corn futures contracts.

Reputation and Reliability

Teucrium is a well-established issuer specializing in commodity ETFs, known for its expertise in structuring and managing these types of funds. They have a generally positive reputation.

Management Expertise

Teucrium's management team has significant experience in commodity markets and ETF management, demonstrating a deep understanding of futures contracts and their complexities.

Goal

The fund seeks to have daily changes in percentage terms of the fund's net asset value reflect the daily changes in percentage terms of a weighted average of the closing settlement prices for three actively traded corn futures contracts.

Investment Approach and Strategy

Strategy: The fund tracks the performance of a weighted average of three actively traded corn futures contracts, specifically the second-to-expire contract and the contracts for the following December and March.

Composition The fund's assets are primarily composed of corn futures contracts. Cash and cash equivalents are also held to cover margin requirements and fund expenses.

Market Share: The Teucrium Corn Fund holds a significant portion of the total assets invested in corn-related ETFs, but faces competition from other commodity ETFs and agricultural funds.

Total Net Assets (AUM): 260000000

Key Competitors

• Invesco DB Agriculture Fund (DBA)
• Elements Rogers International Commodity Index-Agriculture Total Return ETN (RJA)

Competitive Landscape

The market is relatively concentrated, with a few key players. CORN offers direct exposure to corn futures, which may appeal to some investors, while DBA offers broader agricultural commodity exposure which may be better for diversification. However, DBA's broader exposure means it may not perfectly track the price movement of Corn. CORN carries the risk of contango as contracts expire and roll.

Historical Performance: Historical performance varies widely based on corn prices and market conditions, demonstrating significant volatility. Investors should review past performance data carefully to understand potential fluctuations.

Benchmark Comparison: The fund's performance should be compared to a theoretical portfolio holding the specified corn futures contracts. Tracking errors can occur due to fund expenses, contract rolling, and other factors.

Expense Ratio: 0.0189

Average Trading Volume

The ETF exhibits moderate liquidity, generally suitable for average trading needs.

Bid-Ask Spread

The bid-ask spread is typically moderate, but can widen during periods of high volatility or low trading volume.

Market Environment Factors

Economic indicators such as inflation, weather patterns, global demand for corn, and government agricultural policies influence the fund's performance. Supply chain disruptions and geopolitical events can also have a significant impact.

Growth Trajectory

Growth depends on several variables, including weather patterns, harvest yields, and demand drivers. Any significant shifts in these factors will impact prices and the investment strategy.

Competitive Edge

CORN offers targeted exposure to corn futures, which can be desirable for investors seeking to capitalize on specific market movements. It benefits from a well-defined strategy focused solely on corn. The fund's transparent structure and liquidity further attract investors. However, it lacks diversification, making it more vulnerable to fluctuations.

Volatility

The Teucrium Corn Fund exhibits high volatility due to the inherent price fluctuations in the corn market and futures contracts.

Market Risk

The ETF faces market risk related to supply and demand dynamics, weather conditions, geopolitical tensions, and government policies. Futures contracts introduce risks associated with margin calls, leverage, and contango/backwardation.

Ideal Investor Profile

The ideal investor is someone who understands commodity markets, is seeking specific exposure to corn, and is comfortable with high volatility and potential losses.

Market Risk

It is best suited for active traders who understand futures markets and risk tolerance. It may not be suitable for long-term investors seeking stable returns.

The Teucrium Corn Fund offers investors a straightforward way to gain exposure to corn futures contracts. Its performance is highly dependent on corn market conditions, which can be very volatile. The fund is suited for investors with a high risk tolerance and a thorough understanding of commodity markets and futures contracts. Investors should carefully consider the risks before investing.

Data Sources:

• Teucrium Funds website
• ETF.com
• Bloomberg
• Yahoo Finance

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered as investment advice. Past performance is not indicative of future results. Investment decisions should be made based on individual circumstances and after consulting with a qualified financial advisor.