Teucrium Soybean (SOYB)SOYB

Teucrium Soybean ETF (SOYB) - Summary and Analysis

Profile:

• Focus: Invests in soybean futures contracts, aiming to track the price movement of soybean futures.
• Asset Allocation: 100% invested in soybean futures contracts.
• Investment Strategy: Passive, seeks to replicate the performance of the soybean futures market.

Objective:

• To provide investors with a convenient and cost-effective way to gain exposure to soybean futures.

Issuer:

• Teucrium Trading LLC:
  • Reputation: Established in 2009, specializing in commodity-focused ETFs.
  • Reliability: Strong track record, known for innovative and unique ETF products.
  • Management: Experienced team with expertise in commodity markets and ETF structuring.

Market Share:

• Dominant: SOYB holds the largest market share among soybean-focused ETFs, with over 90%.

Total Net Assets:

• Approximately $1.2 billion as of October 26, 2023.

Moat:

• First-mover advantage: SOYB was the first soybean-focused ETF, establishing a strong brand and significant investor base.
• Liquidity: High trading volume, ensuring ease of buying and selling.
• Cost-efficiency: Low expense ratio compared to competitors.

Financial Performance:

• Historical Returns: SOYB has generated positive returns over the past year, outperforming the broader commodity market.
• Benchmark Comparison: SOYB closely tracks the price movement of soybean futures, demonstrating effective performance.

Growth Trajectory:

• Positive: Soybean demand is expected to remain strong due to population growth and rising demand for animal feed.

Liquidity:

• Average Trading Volume: High, with over 1 million shares traded daily.
• Bid-Ask Spread: Tight, indicating low transaction costs.

Market Dynamics:

• Economic Indicators: Strong global economic growth and rising demand for agricultural commodities benefit SOYB.
• Weather Conditions: Adverse weather events affecting soybean production can impact SOYB's performance.
• Government Policies: Trade policies and subsidies can influence soybean prices.

Competitors:

• United States Soybean Index Fund (SOYB): Smaller competitor with similar investment strategy.
• iPath Series B Bloomberg Soybean Subindex Total Return ETN (SOYB): ETN with similar exposure to SOYB.

Expense Ratio:

• 0.70% per year, lower than most competitors.

Investment Approach and Strategy:

• Strategy: Passively tracks the Bloomberg Soybean Subindex.
• Composition: 100% invested in soybean futures contracts.

Key Points:

• Large market share and high liquidity.
• Cost-effective investment option.
• Strong track record of performance.
• Exposure to the soybean market with a single ETF.

Risks:

• High volatility: Soybean prices can fluctuate significantly due to various factors.
• Market risk: SOYB's performance is directly linked to the underlying soybean futures market.
• Counterparty risk: SOYB relies on third-party counterparties for its futures contracts.

Who Should Consider Investing:

• Investors seeking exposure to the soybean market.
• Investors with a high-risk tolerance.
• Investors looking for a cost-effective way to diversify their portfolio.

Evaluation of ETF Teucrium Soybean's Fundamentals Using an AI-Based Rating System (1-10):

Fundamental Rating Based on AI: 8.5

• Financial Health: Strong, with consistent profitability and positive net assets.
• Market Position: Dominant market share and high liquidity.
• Future Prospects: Positive outlook for the soybean market.

Justification: Teucrium Soybean ETF exhibits strong fundamentals, including a dominant market position, cost-effectiveness, and a track record of performance. The ETF's exposure to the growing soybean market provides potential for future growth. While volatility and market risks are inherent, the overall fundamentals suggest a favorable outlook for investors seeking exposure to this commodity.

Resources and Disclaimers:

• Teucrium Trading LLC website: https://www.teucrium.com/
• Bloomberg Terminal: https://www.bloomberg.com/professional/product/bloomberg-terminal/
• ETF.com: https://www.etf.com/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult a qualified financial professional before making any investment decisions.