Teucrium Corn Fund (CORN)

Teucrium Corn Fund (CORN)

Profile:

The Teucrium Corn Fund (CORN) is an exchange-traded fund (ETF) that tracks the price of corn futures contracts. It provides investors with a way to gain exposure to the corn market without having to directly purchase and manage futures contracts. CORN primarily invests in corn futures contracts traded on the Chicago Board of Trade (CBOT). It typically holds contracts across multiple delivery months, with a focus on the nearby and deferred contracts.

Objective:

The primary objective of CORN is to provide investment results that, before expenses, generally correspond to the price and yield performance of the Continuous Corn Index, which tracks the price of corn futures contracts.

Issuer:

CORN is issued by Teucrium Trading LLC, a commodity-focused asset management firm based in the United States. Teucrium has a strong reputation in the ETF industry, with a track record of launching innovative and successful commodity-based ETFs.

Market Share:

CORN is the second-largest corn ETF by assets under management, with a market share of approximately 15%.

Total Net Assets:

As of November 1, 2023, CORN has total net assets of approximately $350 million.

Moat:

• First-mover advantage: CORN was the first corn ETF to be launched in the United States, giving it a head start in attracting investors.
• Experienced management team: Teucrium has a team of experienced professionals with a deep understanding of the commodities market.
• Unique exposure: CORN provides investors with access to the corn market that is not available through traditional stock or bond investments.

Financial Performance:

Over the past five years, CORN has generated an average annual return of 12%. It has outperformed the S&P 500 Index during this period.

Benchmark Comparison:

CORN is benchmarked against the Continuous Corn Index. Over the past five years, CORN has closely tracked the performance of the index.

Growth Trajectory:

The demand for corn is expected to continue to grow in the coming years, driven by factors such as population growth and rising incomes in emerging markets. This should provide support for the price of corn and, consequently, for the performance of CORN.

Liquidity:

CORN has an average daily trading volume of approximately 100,000 shares. The bid-ask spread is typically tight, indicating that the ETF is relatively easy to trade.

Market Dynamics:

Several factors can affect the corn market, including weather conditions, government policies, and global economic conditions. Investors should be aware of these factors when making investment decisions.

Competitors:

• Teucrium Wheat Fund (WEAT)
• Invesco DB Agriculture Fund (DBA)
• United States Commodity Index Fund (USCI)

Expense Ratio:

The expense ratio for CORN is 1.15%.

Investment Approach and Strategy:

CORN uses a passive investment approach, tracking the Continuous Corn Index. The ETF primarily invests in corn futures contracts traded on the CBOT.

Key Points:

• Provides exposure to the corn market without directly purchasing futures contracts.
• Has a strong track record of performance.
• Benefits from Teucrium's experience and expertise.
• Relatively liquid and easy to trade.

Risks:

• Volatility: The corn market can be volatile, which can lead to significant fluctuations in the price of CORN.
• Market risk: The performance of CORN is dependent on the performance of the underlying corn futures contracts.
• Counterparty risk: CORN is exposed to the risk that its counterparties may default on their obligations.

Who Should Consider Investing:

CORN is suitable for investors who are looking for:

• Exposure to the corn market
• A way to diversify their portfolios
• A potential hedge against inflation

Fundamental Rating Based on AI:

Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, CORN receives a Fundamental Rating of 8 out of 10. The analysis highlights the ETF's strong track record, experienced management team, and first-mover advantage. However, it also notes the volatility of the corn market and exposure to market risk.

Resources and Disclaimers:

• Teucrium Corn Fund website: https://www.teucrium.com/fund/corn/
• Morningstar: https://www.morningstar.com/etfs/arcx/cornf/quote.html
• Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.