Teucrium Corn Fund (CORN)

Overview

The Teucrium Corn Fund (CORN) is an exchange-traded fund that aims to provide investors with direct exposure to the price of corn. It seeks to achieve its investment objective by investing in corn futures contracts and other instruments that provide exposure to corn. The fund is designed to reflect the daily changes in the price of corn, rather than the price of corn on a specific expiration date.

Reputation and Reliability

Teucrium Investments is a specialized issuer focused on commodity ETFs. While not as large as major ETF providers, they have established a reputation for offering unique commodity exposure. Their reliability is generally considered good within their niche.

Management Expertise

Teucrium Investments has a dedicated team with expertise in commodity markets and futures-based ETF management.

Goal

To provide investors with a convenient and cost-effective way to gain exposure to the price movements of corn.

Investment Approach and Strategy

Strategy: CORN aims to track the price of corn by investing in a portfolio of corn futures contracts. It employs a strategy of rolling futures contracts forward to maintain exposure as near-term contracts expire.

Composition The ETF primarily holds corn futures contracts traded on regulated exchanges. It may also hold other instruments, such as options on futures contracts, or cash and cash equivalents for hedging or liquidity purposes.

Market Share: As a specialized commodity ETF, its market share is within the agricultural commodity ETF segment. Specific percentages can fluctuate based on market conditions and investor interest.

Total Net Assets (AUM): 145000000

Key Competitors

• Invesco DB Commodity Index Tracking Fund (DBC)
• iShares GSCI Commodity-Indexed Trust (GSG)

Competitive Landscape

The landscape for commodity ETFs is competitive, with several large funds tracking broad commodity indices and others focusing on specific commodities. Teucrium Corn Fund's advantage lies in its singular focus on corn, offering direct exposure without the diversification of broader indices. However, its smaller AUM compared to broad-based commodity ETFs can sometimes lead to less liquidity. Competitors like DBC and GSG offer broader diversification across various commodities, which can be an advantage for investors seeking a more general commodity play but a disadvantage for those specifically targeting corn.

Historical Performance: [object Object],[object Object],[object Object]

Benchmark Comparison: CORN is designed to track the price of corn. Its performance is directly tied to the fluctuations in corn futures prices. Benchmarking against a broad market index like the S&P 500 would show significant divergence, as corn is a commodity with unique drivers.

Expense Ratio: 0.0195

Average Trading Volume

The average daily trading volume for the Teucrium Corn Fund (CORN) is generally moderate, indicating sufficient liquidity for most retail investors.

Bid-Ask Spread

The bid-ask spread for CORN is typically reasonable, reflecting its active trading status and the liquidity of its underlying futures contracts.

Market Environment Factors

Factors influencing CORN include global corn supply and demand, weather patterns, agricultural policies, geopolitical events affecting trade, and the overall economic environment. Fluctuations in crop yields, demand from feed, ethanol production, and international exports are key drivers.

Growth Trajectory

The growth of CORN is directly linked to investor interest in agricultural commodities and the price performance of corn. Strategy changes are unlikely as its focus is specific. Holdings are dynamic, managed through futures contract rolling.

Competitive Edge

The Teucrium Corn Fund offers a specialized and direct investment vehicle for corn futures. Its primary advantage is its singular focus, allowing investors to isolate corn price movements without the complexities of managing futures contracts themselves. For investors with a strong conviction on corn's price direction, CORN provides a straightforward and accessible way to express that view, avoiding the need for active futures trading or broad commodity index diversification.

Volatility

The Teucrium Corn Fund exhibits significant volatility, characteristic of agricultural commodity futures. Its price movements can be sharp and are heavily influenced by factors like weather and crop yields.

Market Risk

Market risk for CORN primarily stems from the price volatility of corn futures. This includes risks associated with supply disruptions (e.g., drought, floods), changes in demand (e.g., for animal feed or biofuels), and the 'contango' or 'backwardation' effects in futures markets, which can impact returns through the cost of rolling contracts.

Ideal Investor Profile

The ideal investor for the Teucrium Corn Fund is one who seeks direct exposure to the price of corn, has a high-risk tolerance, and understands the complexities and volatility of commodity futures. Investors may be looking to hedge against inflation, speculate on corn price movements, or diversify their portfolio with an uncorrelated asset class.

Market Risk

CORN is best suited for active traders or investors with short-to-medium term outlooks on corn prices. It is generally not recommended as a core long-term holding due to its inherent volatility and the potential for contango to erode returns over extended periods.

The Teucrium Corn Fund (CORN) offers targeted exposure to corn futures, designed for investors seeking direct commodity price correlation. While it provides a specialized investment avenue, it comes with significant volatility and risks inherent to agricultural commodities. Its competitive advantage lies in its focused strategy, appealing to those with specific market views on corn, though its suitability is generally for active traders rather than long-term passive investors.

Data Sources:

• Teucrium Investments official website
• Financial data aggregators (e.g., Yahoo Finance, Morningstar)

Disclaimers:

This information is for educational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investing in commodity ETFs involves significant risks, including price volatility and the potential loss of principal. Investors should consult with a qualified financial advisor before making any investment decisions.