Teucrium Agricultural Fund (TAGS)

Overview

The Teucrium Agricultural Fund (TAGR) seeks to provide investors with long-term capital appreciation through exposure to a diversified portfolio of agricultural commodities. The fund invests in a combination of corn, wheat, soybean, and sugar futures contracts, aiming to reflect the overall performance of the agricultural sector.

Reputation and Reliability

Teucrium Trading LLC is a specialized commodity ETF issuer known for its focus on single-commodity and sector-specific agricultural funds. They have a proven track record in managing commodity-based ETFs.

Management Expertise

The management team at Teucrium Trading LLC possesses extensive experience in commodity markets and futures trading, demonstrating a deep understanding of the agricultural sector.

Goal

To seek long-term capital appreciation by investing in agricultural commodities.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index but aims to provide broad exposure to a basket of four key agricultural commodities (corn, wheat, soybeans, and sugar) through futures contracts.

Composition The fund's composition primarily consists of futures contracts on corn, wheat, soybean, and sugar. The weightings are strategically allocated to balance risk and potential return across these commodities.

Market Share: The Teucrium Agricultural Fund (TAGR) holds a moderate market share within the broader agricultural commodity ETF sector.

Total Net Assets (AUM): 86978969

Key Competitors

• Invesco DB Agriculture Fund (DBA)
• iPath Series B Bloomberg Agriculture Subindex Total Return ETN (JJA)

Competitive Landscape

The agricultural commodity ETF sector is competitive, with several established funds offering different approaches to commodity exposure. TAGR distinguishes itself through its balanced allocation to key agricultural commodities. Competitors may offer broader or more specialized commodity exposure, potentially appealing to different investor preferences. TAGR's balanced approach can be advantageous during periods of volatility but might lag behind competitors focusing on specific commodities that experience rapid price increases.

Historical Performance: Historical performance varies based on commodity market conditions; tracking performance over 1, 3, 5, and 10-year periods provides context.

Benchmark Comparison: Comparing TAGR's performance to a broad agricultural commodity index or a blend of individual commodity benchmarks offers insights into its effectiveness.

Expense Ratio: 0.27

Average Trading Volume

The average trading volume indicates the ETF's ease of buying and selling shares in the open market.

Bid-Ask Spread

The bid-ask spread reflects the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept, impacting trading costs.

Market Environment Factors

Economic indicators (e.g., inflation, interest rates), supply chain disruptions, weather patterns, and geopolitical events influence agricultural commodity prices, impacting TAGR's performance.

Growth Trajectory

The growth trajectory of TAGR depends on factors such as increasing global food demand, changing agricultural production practices, and shifts in investor sentiment towards commodities. The fund adjusts its holdings in response to market changes and rebalances periodically.

Competitive Edge

TAGR's competitive advantage lies in its strategic diversification across four key agricultural commodities (corn, wheat, soybeans, and sugar), offering a balanced exposure to the sector. Teucrium's expertise in commodity futures trading and ETF management provides a solid foundation for the fund's operations. The fund's low expense ratio compared to some competitors also enhances its attractiveness to cost-conscious investors. This combination makes it a compelling option for investors seeking broad, efficient exposure to agricultural commodities.

Volatility

Historical volatility of TAGR will vary based on underlying commodity market volatility.

Market Risk

Risks include commodity price fluctuations, supply and demand imbalances, geopolitical events, weather-related disruptions, and regulatory changes impacting agricultural markets.

Ideal Investor Profile

The ideal investor for TAGR is someone seeking exposure to agricultural commodities as part of a diversified portfolio, potentially for inflation hedging or to capitalize on commodity price trends.

Market Risk

TAGR is suitable for investors with a moderate to high-risk tolerance and a long-term investment horizon, as commodity prices can be volatile in the short term.

The Teucrium Agricultural Fund (TAGR) offers diversified exposure to key agricultural commodities through futures contracts, making it a convenient vehicle for investors seeking to participate in the agricultural sector. Its balanced approach aims to mitigate the risks associated with individual commodity price swings, while its low expense ratio enhances its attractiveness. However, investors should be aware of the inherent volatility of commodity markets and consider TAGR as part of a well-diversified portfolio. The fund's performance is significantly influenced by global supply and demand dynamics, weather patterns, and geopolitical factors, requiring careful monitoring of these market forces.

Data Sources:

• Teucrium Funds Website
• ETF Database
• Yahoo Finance

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered financial advice. Investment decisions should be made after consulting with a qualified financial advisor.