Teucrium Plans Broad Ag ETF

By
ETF.com Staff
April 25, 2011
Share:

Teucrium plans a four-for-the-price-of-one agricultural fund-of-funds ETF.

Teucrium Trading, the Brattleboro, Vt.-based investment firm specializing in futures-based commodities ETFs, filed paperwork with the Securities and Exchange Commission to offer a multicommodity exchange-traded fund that will invest in four of its single-commodity funds.

The Teucrium Agricultural Fund (NYSEArca: TAGS) will be evenly invested in the Teucrium Corn Fund (NYSEArca: CORN), the Teucrium Wheat Fund (NYSEArca: WEAT), the Teucrium Soybean Fund (NYSEArca: SOYB) and the Teucrium Sugar Fund (NYSEArca: CANE). The broad new fund, TAGS, will be rebalanced daily to ensure it always has about 25 percent of its assets invested in each of the four underlying ETFs, according to the filing.

Commodities and agricultural products are in their second decade of a bull market, as growth in emerging market countries such as China, India and Brazil strain available supplies. ETFs such as the PowerShares DB Agriculture Fund (NYSEArca: DBA) have ridden this wave of rising demand, growing rapidly and posting strong returns. DBA, whose price has climbed more than 40 percent in the past two years, had almost $4 billion in assets as of April 21, according to data compiled by IndexUniverse.

Of the four underlying funds, the corn ETF is the only one that has come to market. The company first filed to offer wheat, soybean and sugar ETFs as part of a broad push into commodities last June. That filing also included plans for natural gas and crude oil funds, both of which it brought to market earlier this year.

CORN has gathered more than $91 million since its rollout on June 9, 2010, while the Teucrium Natural Gas Fund (NYSEArca: NAGS) and the Teucrium WTI Crude Oil Fund (NYSEArca: CRUD) have attracted $2.38 million and $5.53 million, respectively.

The sponsor won’t receive a management fee from the new fund, TAGS, but will receive a fee of 1.00 percent a year from each of the underlying funds, the filing said.

 

ETF.COM CHANNELS

Want to learn more about smart-beta ETFs? Check out our smart-beta guide, essentials library and ETF screener!

ETF DAILY DATA

REIT fund 'VNQ' topped net creations Thursday, July 30, with inflows of $313 million. The least popular ETF of the day was small-cap 'IWM', which lost about 1.6% of its total assets.

'SPY' and 'DIA' paced State Street's issuer-leading inflows Thursday, July 30. Total U.S.-listed ETF assets ended the day at $2.141 trillion.

ETF.COM ANALYST BLOGS

By Matt Hougan

The median ETF tracks its index perfectly excluding expenses. But different firms and funds perform quite differently.

By Paul Britt

Toss and turn about whether to hedge currency risk, but don’t lose sleep over the derivatives themselves.

By Dave Nadig

With the China A-share market half-broken, ETF investors should be very, very cautious.

By Drew Voros

Price depreciation and continued outflows have made for a tough few years.

ETF INDUSTRY PERSPECTIVE

By Invesco PowerShares

A more in-depth look at the smart-beta survey's results.

By Invesco PowerShares

Smart beta appears to be poised for further growth.