Third-Generation Commodities ETFs
The fund’s diversified approach to the space amounts to what some call third-generation commodities funds.
Teucrium’s Agricultural ETF (NYSEArca: TAGS) is another newcomer to the space of broad agricultural funds, although TAGS is a fund-of-funds that invests in four other ETFs, each targeting the corn, wheat, soybean and sugar futures markets respectively. TAGS was launched two weeks ago.
U.S. Commodity Funds derives its more sophisticated futures-based strategies from Stamford, Conn.-based SummerHaven Index Management, one of which is now underlying USAG.
SummerHaven's partner and founder Geert Rouwenhorst legitimized futures-based commodities investing in a seminal work he first published with Gary Gorton about half a decade ago.
United States Commodity Funds first began licensing rules-based commodities investing strategies from SummerHaven in 2010.