Teucrium Soybean (SOYB)

Overview

The Teucrium Soybean Fund (SOYB) is designed to provide investors with exposure to the price movements of soybean futures contracts. It primarily invests in soybean futures contracts traded on the Chicago Board of Trade (CBOT). The fund's objective is to reflect the daily changes in percentage terms of a weighted average of the closing prices for three actively traded soybean futures contracts.

Reputation and Reliability

Teucrium is a specialized commodity ETF issuer known for its focus on agricultural commodities. Their reputation is built on providing transparent and direct exposure to commodity futures.

Management Expertise

Teucrium has a dedicated management team with experience in commodity markets and futures trading, which is crucial for managing commodity-based ETFs effectively.

Goal

The primary goal of SOYB is to reflect the daily changes in percentage terms of a weighted average of the closing prices for three actively traded soybean futures contracts.

Investment Approach and Strategy

Strategy: SOYB seeks to achieve its investment objective by investing in soybean futures contracts.

Composition SOYB primarily holds front-month, second-month and third-month soybean futures contracts on the Chicago Board of Trade (CBOT).

Market Share: SOYB holds a significant, albeit fluctuating, market share within the specific segment of soybean futures-based ETFs.

Total Net Assets (AUM): 61242452

Key Competitors

• WEAT
• CORN
• DBA

Competitive Landscape

The competitive landscape for SOYB involves other agricultural commodity ETFs, with SOYB dominating soybean specific exposure. Advantages of SOYB include its direct exposure to soybean futures. Disadvantages include the volatility associated with agricultural commodity prices and potential contango effects.

Historical Performance: Historical performance data would need to be retrieved from financial data providers, showing price changes over various periods (e.g., 1-year, 3-year, 5-year).

Benchmark Comparison: The benchmark for SOYB is the index of soybean futures contracts it aims to track. Performance should be compared against this index to assess tracking error.

Expense Ratio: 1.14

Average Trading Volume

SOYB's liquidity, as indicated by its average trading volume, can fluctuate significantly based on market interest in soybean futures.

Bid-Ask Spread

The bid-ask spread for SOYB can vary depending on market conditions and trading volume, but it typically stays relatively narrow.

Market Environment Factors

Factors such as weather patterns, global demand for soybeans (particularly from China), US Department of Agriculture (USDA) reports, and currency fluctuations significantly influence SOYB's performance.

Growth Trajectory

SOYB's growth trajectory depends on factors that influence soybean prices, including changes in global supply and demand, weather conditions in key growing regions, and shifts in trade policies.

Competitive Edge

SOYB's competitive advantage lies in its focused exposure to soybean futures, offering investors a direct and transparent way to participate in the soybean market. It provides a relatively pure play on soybean price movements. The fund benefits from Teucrium's expertise in managing commodity ETFs. However, the fund is subject to volatility in agricultural commodity prices.

Volatility

SOYB's price is highly volatile due to the nature of agricultural commodities, making it susceptible to significant price swings.

Market Risk

SOYB faces risks related to changes in supply and demand for soybeans, weather conditions, geopolitical events, and government policies, which can all impact soybean prices.

Ideal Investor Profile

The ideal investor for SOYB is someone seeking exposure to soybean prices, such as agricultural commodity investors or those looking to hedge against inflation or commodity price fluctuations.

Market Risk

SOYB is best suited for active traders or investors with a higher risk tolerance who seek short-term exposure to soybean price movements. It is less suitable for long-term passive investors due to its volatility and potential for contango to erode returns over time.

Teucrium Soybean (SOYB) provides direct exposure to soybean futures contracts, making it suitable for investors seeking to participate in the soybean market. Its performance is highly dependent on factors affecting soybean prices, including weather, global demand, and government policies. SOYB is managed by Teucrium, a specialized commodity ETF issuer, with expertise in managing commodity-based ETFs. However, potential investors should be aware of the fund's volatility and the impact of contango, which can reduce returns over time. Therefore, SOYB is best suited for short-term tactical allocations rather than long-term buy-and-hold strategies.

Data Sources:

• Teucrium Funds Website
• Financial News Providers (e.g., Bloomberg, Reuters, Yahoo Finance)
• ETF Database
• US Department of Agriculture (USDA) Reports

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investing in ETFs involves risk, including the potential loss of principal. Past performance is not indicative of future results.