Teucrium Agricultural Fund (TAGS)

Overview

The Teucrium Agricultural Fund (TAGR) provides investors exposure to a diversified portfolio of agricultural commodities futures contracts, including corn, wheat, soybeans, and sugar. It aims to track the performance of a basket of these agricultural commodities. The fund offers a convenient way to gain exposure to the agricultural sector without directly investing in individual commodities or futures contracts.

Reputation and Reliability

Teucrium Trading LLC is a specialized ETF provider focused on commodity-based ETFs. They are generally considered reputable in their niche.

Management Expertise

Teucrium has a team of experienced professionals specializing in commodity markets and ETF management.

Goal

To reflect the daily changes of a portfolio of selected agricultural commodities futures contracts.

Investment Approach and Strategy

Strategy: The ETF seeks to provide investment returns that correspond to the daily changes of a specified basket of agricultural commodity futures contracts. It does not track a specific published index.

Composition The fund primarily holds futures contracts on corn, wheat, soybeans, and sugar.

Market Share: The Teucrium Agricultural Fund holds a small market share of the overall commodity ETF market.

Total Net Assets (AUM): 69494286

Key Competitors

• Invesco DB Agriculture Fund (DBA)
• Elements Rogers International Commodity Index-Agriculture Total Return ETN (RJA)
• iPath Series B Bloomberg Agriculture Subindex Total Return ETN (JJA)

Competitive Landscape

The agricultural commodity ETF market is competitive. DBA is a much larger competitor with higher liquidity. TAGR's advantage lies in its specific commodity composition, which may appeal to investors with targeted views. A disadvantage is its relatively small AUM and associated lower liquidity compared to DBA.

Historical Performance: Past performance does not guarantee future results. Performance data should be sourced from reputable financial data providers.

Benchmark Comparison: TAGR does not track an exact benchmark, but performance can be compared to broad agricultural commodity indices. Performance may deviate due to the fund's specific holdings and roll yields.

Expense Ratio: 0.27

Average Trading Volume

The average trading volume indicates adequate liquidity, but can vary, especially during times of high market volatility.

Bid-Ask Spread

The bid-ask spread can fluctuate, but is generally tight, reflecting the fund's holdings.

Market Environment Factors

TAGR is affected by factors such as weather patterns, global demand for agricultural products, government policies, and currency fluctuations.

Growth Trajectory

TAGR's growth trajectory is dependent on investor sentiment towards agricultural commodities and its ability to effectively track its investment objective. Changes in the underlying futures contracts and trading strategies can impact its growth.

Competitive Edge

TAGR's advantage is its pure focus on agricultural commodities. It provides granular exposure to corn, wheat, soybeans and sugar futures. The fund offers transparency through its daily holding disclosures and is easily accessible to investors through the ETF structure. Its relatively low expense ratio compared to some peers also gives it a slight edge. However, roll yield effects, from continually buying new futures contracts as old ones expire, might create losses.

Volatility

TAGR's volatility is directly related to the volatility of the underlying agricultural commodity futures contracts.

Market Risk

TAGR is subject to market risk associated with agricultural commodities, including price fluctuations due to supply and demand imbalances, weather events, and geopolitical factors. Futures-based ETFs also experience 'roll yield' risk.

Ideal Investor Profile

The ideal investor for TAGR is someone who seeks exposure to agricultural commodities and understands the risks associated with futures contracts.

Market Risk

TAGR is more suitable for active traders or those seeking tactical exposure to the agricultural sector rather than long-term, passive index followers.

Teucrium Agricultural Fund (TAGR) offers investors exposure to a diversified portfolio of agricultural commodity futures, primarily focusing on corn, wheat, soybeans, and sugar. It's managed by Teucrium Trading LLC, a specialized commodity ETF provider. The fund's performance is tied to the volatility of these commodities and is subject to risks like weather, global demand, and roll yield. TAGR is best suited for active traders with a tactical view on the agricultural sector, rather than long-term passive investors due to its underlying assets and roll yield risk.

Data Sources:

• ETF provider's website
• Financial data providers (e.g., Bloomberg, Yahoo Finance)
• Investment research reports

Disclaimers:

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