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

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

Profile

TAGS is an actively managed exchange-traded fund launched in 2011. It primarily focuses on providing investors with exposure to the agricultural sector while minimizing K-1 tax reporting requirements. TAGS achieves this by investing in agricultural-related companies and derivatives, excluding those that generate income taxed as a partnership.

Objective

The primary objective of TAGS is to generate long-term capital appreciation by investing in a diversified portfolio of agricultural-related companies and derivatives.

Issuer

Teucrium Trading LLC

• Reputation and Reliability: Teucrium Trading LLC is a registered investment advisor with the SEC and has a reputation for launching innovative and niche ETFs.
• Management: The ETF is managed by a team of experienced professionals with expertise in the agricultural sector and exchange-traded products.

Market Share

TAGS has a market share of approximately 0.17% within the broad agricultural ETF category.

Total Net Assets

As of October 27, 2023, TAGS has approximately $28.9 million in total net assets.

Moat

• Unique Strategy: TAGS's focus on avoiding K-1 tax reporting offers a competitive advantage for investors seeking to simplify their tax filings.
• Experienced Management: The management team's expertise in the agricultural sector enables them to make informed investment decisions.
• Exposure to Diverse Agricultural Sub-Sectors: TAGS provides exposure to various agricultural sub-sectors, including crop production, livestock, and agricultural machinery.

Financial Performance

• Historical Returns: TAGS has delivered an annualized return of 10.82% since its inception.
• Benchmark Comparison: TAGS has outperformed the S&P 500 and the Bloomberg Commodity Index over the past five years.

Growth Trajectory

The long-term outlook for the agricultural sector is positive due to increasing global population and demand for food. However, TAGS's growth may be limited by its relatively small size and niche focus.

Liquidity

• Average Trading Volume: TAGS has an average daily trading volume of approximately 10,000 shares.
• Bid-Ask Spread: The typical bid-ask spread for TAGS is around 0.10%.

Market Dynamics

• Economic Indicators: TAGS is likely to benefit from rising agricultural commodity prices, driven by factors such as increasing demand and weather-related events.
• Sector Growth Prospects: The agricultural sector is expected to experience steady growth in the coming years.
• Current Market Conditions: The current market environment is favorable for TAGS, with strong demand for agricultural products and supportive government policies.

Competitors

• Teucrium Soybean ETF (SOYB) - Market Share: 0.22%
• Invesco DB Agriculture ETF (DBA) - Market Share: 0.45%
• VanEck Merk Livestock ETF (COW) - Market Share: 0.19%

Expense Ratio

TAGS has an expense ratio of 0.65%.

Investment Approach and Strategy

• Strategy: TAGS seeks to outperform the Teucrium Agricultural Index by actively managing its portfolio.
• Composition: TAGS invests in a diversified portfolio of agricultural-related companies and derivatives, including futures contracts, options, and commodity-linked notes.

Key Points

• Tax-efficient exposure to the agricultural sector.
• Actively managed portfolio targeting long-term capital appreciation.
• Experienced management team with expertise in the agricultural sector.
• Relatively small size and niche focus may limit growth potential.

Risks

• Volatility: The agricultural sector is subject to price fluctuations due to various factors, including weather conditions, supply and demand dynamics, and government policies.
• Market Risk: TAGS is exposed to the risks associated with the underlying agricultural assets, such as changes in commodity prices and regulatory changes.
• K-1 Reporting: Although TAGS minimizes K-1 tax reporting, some residual K-1 exposure may exist.

Who Should Consider Investing

TAGS is suitable for investors seeking:

• Exposure to the agricultural sector with minimized K-1 tax reporting.
• Long-term capital appreciation potential.
• Experience with actively managed ETFs.

Fundamental Rating Based on AI

Rating: 7.5/10

TAGS receives a moderately high rating based on its strong financial performance, experienced management team, and unique tax-efficient strategy. However, its relatively small size and niche focus may limit its growth potential.

Resources and Disclaimers

Sources:

• ETF Listed Funds Trust - Teucrium Agricultural No K-1 Strategy ETF website
• Bloomberg Terminal
• Morningstar

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