Teucrium Plans Broad Ag ETF

ETF.com Staff
April 25, 2011

Related ETFs

Ticker Fund name
DBAPowerShares DB Agriculture
CORNTeucrium Corn
Related ETF Lists
Commodity ETFs

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.



Lean why bond ETFs are an essential part of a diversified portfolio with our bond ETF channel.

Learn how currency-hedged ETFs can reduce the currency risk in your portfolio.


Investors took profits on U.S. equity ETFs on Friday, Nov. 20.

Top three issuers saw net inflows in their products on Monday, Nov. 23.


By Dave Nadig

With the SEC looking to regulate liquidity, should bond ETF investors worry?

By Matt Hougan

ETF.com’s conference offered several actionable ideas for investors.

By Dave Nadig

The exchange just proposed the latest rule to reinvent history on bad ETF trades.

By Matt Hougan

Best deal in the history of finance gets better.


By Nicholas Kalivas

The case for low-volatility, currency-hedged exposure in Europe.

By Nick Stonestreet

ETF firm builds out its business.

By Nicholas Kalivas

A sector-momentum strategy may be just what your portfolio needs in the current market environment.