Listed Funds Trust - Teucrium Agricultural No K-1 Strategy ETF (TILL)TILL

ETF Listed Funds Trust - Teucrium Agricultural No K-1 Strategy ETF (TAGS)

Profile:

The ETF Listed Funds Trust - Teucrium Agricultural No K-1 Strategy ETF (TAGS) focuses on providing exposure to agricultural commodity futures contracts, primarily in grains and livestock. It utilizes an actively managed approach to invest in the futures contracts of various agricultural commodities like corn, wheat, soybeans, live cattle, feeder cattle, and lean hogs. The ETF aims to deliver returns that are similar to the combined index of returns from these futures contracts, without any K-1 tax reporting requirements.

Objective:

The primary goal of TAGS is to achieve capital appreciation by tracking the performance of a benchmark index composed of agricultural commodity futures contracts. It seeks to offer investors a convenient way to access these markets without the complexities of K-1 reporting.

Issuer:

Teucrium Trading LLC

Reputation and Reliability: Teucrium is a relatively small ETF issuer specializing in commodity-focused exchange-traded products. It has a generally positive reputation, but its limited size and focus may appeal to a niche audience.

Management: Teucrium's management team has experience in commodity trading and has a proven track record in managing commodity ETFs.

Market Share:

TAGS holds a small share of the agricultural commodities ETF market, competing with larger and more well-established players.

Total Net Assets:

As of November 2023, TAGS' total net assets were approximately $44.7 million.

Moat:

TAGS differentiates itself by offering a K-1 free investment in agricultural commodities. This reduces the tax reporting burden for investors and may attract those who seek simplicity in their portfolio.

Financial Performance:

TAGS has historically delivered positive returns, mirroring the performance of agricultural commodity futures. However, its performance can be volatile due to the inherent fluctuations in commodity markets.

Growth Trajectory:

The growth trajectory of TAGS relies heavily on the future performance of agricultural commodities and investor demand for K-1 free exposure.

Liquidity:

TAGS has a moderate trading volume, resulting in a bid-ask spread that may impact trading costs.

Market Dynamics:

TAGS is influenced by various economic factors, including global supply and demand for agricultural products, government policies, weather patterns, and geopolitical events.

Competitors:

• DBA - iPath Series B Bloomberg Agriculture Subindex Total Return ETN
• WEAT - Teucrium Wheat Fund
• CORN - Teucrium Corn Fund

Expense Ratio:

TAGS' expense ratio is 1.35%, which is slightly higher than other similar commodity ETFs.

Investment Approach and Strategy:

• Strategy: Actively managed to track the performance of a benchmark index of agricultural commodity futures contracts.
• Composition: Invests in futures contracts of various agricultural commodities like grains and livestock.

Key Points:

• Offers exposure to agricultural commodity futures without K-1 reporting.
• Actively managed by Teucrium Trading LLC.
• Moderate liquidity and higher-than-average expense ratio.
• Performance linked to the volatility of agricultural commodity markets.

Risks:

• Volatility: Agricultural commodity prices can fluctuate significantly, leading to potential losses for investors.
• Market Risk: The ETF is subject to risks associated with the specific agricultural commodities it invests in.
• Counterparty Risk: The ETF relies on futures contracts, which involve credit risks related to counterparties.

Who Should Consider Investing:

TAGS is suitable for investors who:

• Seek exposure to agricultural commodities.
• Prefer a K-1 free investment.
• Understand and tolerate volatility.

Evaluation of TAGS' Fundamentals using an AI-based rating system:

Fundamental Rating Based on AI: 6.5/10

TAGS receives a moderate rating based on its market share, liquidity, and expense ratio. While its unique K-1 free feature is attractive, its reliance on actively managed futures contracts and potential volatility might discourage some investors. The AI system considers historical performance, management experience, and projected growth trends in its assessment. However, individual investors should conduct further research and due diligence before deciding to invest in TAGS.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• Teucrium website
• ETF.com
• Bloomberg

This analysis is for informational purposes only and should not be considered investment advice. Investing in any financial instrument involves inherent risks, and it is essential to conduct thorough research and consult a financial advisor before making investment decisions.