Teucrium Soybean (SOYB)

Overview

Teucrium Soybean Fund (SOYB) is an actively managed ETF that provides investors with direct exposure to the soybean commodity. Its primary focus is on the price movements of soybeans, seeking to reflect the changes in the price of soybean futures contracts. The fund invests in a mix of soybean futures contracts traded on the Chicago Board of Trade (CBOT).

Reputation and Reliability

Teucrium Investments is known for its specialized commodity ETFs, offering investors access to physical commodities or futures contracts. They have a track record of providing targeted exposure to agricultural and other commodity markets.

Management Expertise

Teucrium Investments employs a team with expertise in commodity futures markets and ETF management, aiming to provide accurate tracking of commodity prices through their futures-based strategies.

Goal

The primary investment goal of the Teucrium Soybean Fund is to reflect the performance of soybean futures contracts, providing investors with a way to gain exposure to the price movements of this agricultural commodity.

Investment Approach and Strategy

Strategy: Teucrium Soybean aims to provide investors with exposure to the price of soybean futures. It does not aim to track a specific index but rather the spot price of soybeans through its holdings in futures contracts.

Composition The ETF primarily holds soybean futures contracts traded on the Chicago Board of Trade (CBOT). The fund actively manages its portfolio of futures contracts to reflect the current market conditions and maintain its investment objective.

Market Share: Information on market share for niche commodity ETFs like SOYB is often not publicly available in the same way as broad-market equity ETFs. Its market share is likely small relative to the overall ETF market but significant within the specific soybean futures exposure segment.

Total Net Assets (AUM): 213530000

Key Competitors

• Invesco DB Commodity Index Tracking Fund (DBC)
• iPath Series B Bloomberg Grains Subindex Total Return ETN (JJG)
• WisdomTree Enhanced Agriculture Strategy Fund (NASC)

Competitive Landscape

The competitive landscape for commodity exposure includes broad commodity funds, agriculture-specific ETFs, and ETNs. SOYB's advantage lies in its direct focus on soybeans. A disadvantage can be the complexity of futures roll yield and potential contango/backwardation impacting performance compared to a physical commodity or a diversified commodity index.

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Benchmark Comparison: SOYB aims to track the price of soybean futures, not a specific benchmark index. Its performance is evaluated against the actual movement of soybean futures prices.

Expense Ratio: 0.75

Average Trading Volume

The average daily trading volume for Teucrium Soybean is sufficient for most retail investors to enter and exit positions without significant price impact.

Bid-Ask Spread

The bid-ask spread for Teucrium Soybean is generally tight, indicating good liquidity and relatively low transaction costs for traders.

Market Environment Factors

Soybean prices are influenced by global supply and demand, weather patterns, geopolitical events, currency fluctuations, and U.S. agricultural policies. Economic growth and consumer demand for food and animal feed are also key drivers.

Growth Trajectory

The growth trajectory of SOYB is directly tied to the price of soybeans. Fluctuations in the commodity market, changes in planting acreage, and global demand will dictate its performance and potential for asset growth.

Competitive Edge

Teucrium Soybean's competitive edge lies in its specialized focus on providing direct exposure to the soybean commodity through futures contracts. This targeted approach allows investors to gain precise exposure to this specific agricultural market, which can be beneficial for hedging or speculative strategies in the soybean sector. The active management of futures contracts aims to optimize roll yield and manage market dynamics effectively.

Volatility

Teucrium Soybean can be highly volatile due to the inherent price swings in agricultural commodity markets, influenced by weather, supply/demand, and global economic factors.

Market Risk

The primary market risk for SOYB is price fluctuation in soybean futures contracts. This includes risks related to adverse weather, changes in global demand, government policies, and the potential for contango or backwardation in the futures market which can impact returns.

Ideal Investor Profile

The ideal investor for Teucrium Soybean is one who seeks direct exposure to the price movements of soybeans, understands commodity futures markets, and is willing to accept the associated risks and volatility. This could include agricultural producers, food processors, or investors looking to diversify their portfolio with commodity exposure.

Market Risk

Teucrium Soybean is best suited for active traders or sophisticated investors who understand the nuances of commodity futures and are looking for short-to-medium term tactical plays or hedging strategies related to soybeans. It is generally not recommended for long-term passive investors due to the complexities and volatility of futures markets.

Teucrium Soybean Fund (SOYB) offers specialized direct exposure to soybean commodity futures, managed actively by Teucrium Investments. While its market share is niche, it appeals to investors seeking targeted agricultural commodity plays. The ETF's performance is subject to the inherent volatility of soybean prices, influenced by global supply and demand factors. Its suitability lies with active traders and those with a strong understanding of futures markets, rather than passive, long-term investors.

Data Sources:

• Teucrium Investments Official Website
• Financial Data Providers (e.g., Morningstar, Bloomberg)
• SEC Filings

Disclaimers:

This information is for educational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions. Data accuracy may vary, and real-time data should be consulted for trading decisions.