Santa Fe, N.M.-based Teucrium Trading, LLC unveiled the Teucrium Agricultural Fund, which is being touted as the first fund to offer exposure to agricultural commodities in a single fund of exchange-traded funds.
The fund will be managed by Sal Gilbertie and Kelly Teevan. It sports an expense ratio of 32 basis points.
The new fund, which will trade on the New York Stock Exchange Arca, will bet on corn, soybeans, wheat and sugar, by holding an equal weighting of existing Teucrium single commodity funds, namely, the Teucrium Corn Fund, Teucrium Soybean Fund, Teucrium Sugar Fund and Teucrium Wheat Fund.
Gilbertie, president and chief investment officer of Teucrium Trading, LLC, said, “TAGS was designed as a fund of ETPs to allow investors to allocate investments in the four core agricultural commodities without having to rebalance their exposure themselves. By using the fund of ETPs structure, we are not only providing investors with a greater degree of diversification, we are providing them with the same unique investment methodology used in each of the underlying Teucrium commodity funds.”
He added that the fund has been designed to reduce contango or the cost of carrying and rolling futures, and will be rebalanced regularly to maintain the 25% weighting in the Corn Fund, Soybean Fund, Sugar Fund and Wheat Fund.
Hung Tran writes for Money Management Executive.