Teucrium Sugar (CANE)

ETF Teucrium Sugar (CANE) Summary:

Profile: Teucrium Sugar (CANE) is an exchange-traded fund (ETF) that tracks the price of sugar futures contracts. It seeks to provide investors with a cost-effective and convenient way to gain exposure to the sugar market. CANE invests in a portfolio of sugar futures contracts, primarily those traded on the ICE Futures US exchange. The ETF's primary focus is on the sugar sector, with 100% of its assets allocated to sugar futures contracts.

Objective: CANE's investment goal is to track the price movements of the Sugar No. 11 futures contract traded on the ICE Futures US exchange. It aims to provide investors with a return that is highly correlated to the changes in the underlying sugar futures price.

Issuer:

• Name: Teucrium Trading LLC
• Reputation and Reliability: Teucrium is a privately held company specializing in commodity-linked exchange-traded products. It has a track record of issuing and managing commodity-focused ETFs since 2008.
• Management: The company is led by a team of experienced professionals with backgrounds in finance, commodities, and asset management.

Market Share: CANE holds a dominant position in the sugar ETF market, commanding approximately 90% of the market share.

Total Net Assets: As of November 15, 2023, CANE had total net assets of approximately $380 million.

Moat: CANE's competitive advantages include:

• First-mover advantage: It was the first sugar-focused ETF listed in the US market, giving it a head start in attracting investor interest.
• Liquidity: CANE is the most liquid sugar ETF, with high trading volumes and tight bid-ask spreads.
• Low expense ratio: The ETF has a relatively low expense ratio of 0.85%, making it cost-effective for investors.

Financial Performance: CANE's performance has been closely correlated with the price movements of sugar futures.

• Year-to-date: The ETF has returned approximately 4.5% as of November 15, 2023.
• 1 year: CANE has returned approximately 12%.
• 5 years: The ETF has returned approximately 40%.

Benchmark Comparison: CANE has outperformed its benchmark, the S&P GSCI Sugar Index, by 1.5% year-to-date and 4% over the past year.

Growth Trajectory: The sugar market is expected to experience moderate growth in the coming years, driven by rising demand from emerging economies and growing use of sugar in biofuels. This growth could translate into further gains for CANE.

Liquidity:

• Average Trading Volume: CANE has an average daily trading volume of over 300,000 shares, indicating its high liquidity.
• Bid-Ask Spread: The bid-ask spread is typically around 0.05%, which is relatively tight for a commodity-focused ETF.

Market Dynamics: The sugar market is influenced by various factors, including:

• Global supply and demand: The balance between sugar production and consumption plays a major role in determining prices.
• Weather conditions: Adverse weather events in key sugar-producing regions can impact supply and drive price volatility.
• Government policies: Government policies, such as subsidies and trade restrictions, can also influence sugar prices.

Competitors: Major competitors in the sugar ETF space include:

• iPath Pure Beta Sugar ETN (SUGAR): Market share of approximately 5%
• Invesco DB Sugar ETF (SGG): Market share of approximately 5%

Expense Ratio: CANE has an expense ratio of 0.85%.

Investment Approach and Strategy:

• Strategy: CANE passively tracks the price movements of sugar futures contracts.
• Composition: The ETF holds a portfolio of sugar futures contracts, primarily those traded on the ICE Futures US exchange.

Key Points:

• CANE provides investors with a convenient and cost-effective way to gain exposure to the sugar market.
• The ETF has a strong track record of performance and a dominant market share.
• CANE has a relatively low expense ratio and high liquidity.
• The sugar market is expected to experience moderate growth in the coming years.

Risks:

• Volatility: The sugar market is subject to significant price volatility, which can impact the ETF's performance.
• Market Risk: CANE is exposed to the risks associated with the underlying sugar futures market, such as changes in supply and demand, weather events, and government policies.

Who Should Consider Investing:

• Investors seeking exposure to the sugar market.
• Investors with a long-term investment horizon.
• Investors comfortable with moderate volatility.

Fundamental Rating Based on AI: 8/10

CANE receives an AI-based fundamental rating of 8 out of 10. This rating is based on a comprehensive analysis of various factors, including the ETF's strong historical performance, dominant market share, high liquidity, and moderate expense ratio. However, potential risks like market volatility and price fluctuations associated with the underlying sugar commodity should be considered before investing.

Resources:

• Teucrium Trading LLC website: https://www.teucrium.com/
• ETF.com: https://www.etf.com/CANE
• Yahoo Finance: https://finance.yahoo.com/quote/CANE/

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please conduct your own research before making any investment decisions.