Teucrium Wheat (WEAT)

Overview

The Teucrium Wheat Fund (WEAT) seeks to provide daily investment results that correspond to the daily changes in percentage terms of the weighted average of the closing settlement prices of three futures contracts for wheat specifically the second-to-expire CBOT wheat futures contract.

Reputation and Reliability

Teucrium is a well-known issuer specializing in commodity ETFs, demonstrating reliability in providing exposure to specific agricultural commodities.

Management Expertise

Teucrium has a specialized management team focused on commodity markets, possessing expertise in futures contract management and trading.

Goal

Seeks to provide investment results that correspond to the daily changes in percentage terms of the price of wheat.

Investment Approach and Strategy

Strategy: The fund uses a futures-based strategy, investing in wheat futures contracts rather than directly holding the commodity.

Composition The ETF holds wheat futures contracts traded on the Chicago Board of Trade (CBOT).

Market Share: WEAT holds a significant share of the wheat-focused commodity ETF market.

Total Net Assets (AUM): 58184000

Key Competitors

• JJG
• DBA

Competitive Landscape

WEAT dominates the specific wheat market ETF space. Competitors like JJG offer broader agricultural commodity exposure. WEAT's focused approach gives it specialized wheat exposure, but also concentrates risk.

Historical Performance: Historical performance varies greatly based on wheat market conditions. Due to the nature of futures contracts, performance can be highly volatile and does not directly track spot wheat prices.

Benchmark Comparison: Comparison to spot wheat prices is less relevant, as WEAT tracks futures. The fund's benchmark is based on the performance of a specific set of wheat futures contracts.

Expense Ratio: 0.0119

Average Trading Volume

The average trading volume for WEAT can fluctuate depending on market interest, but generally maintains reasonably high liquidity, with approximately 650,000 shares trading daily.

Bid-Ask Spread

The bid-ask spread for WEAT is generally tight, reflecting good liquidity.

Market Environment Factors

Economic indicators such as inflation, agricultural production reports, global trade policies, and weather patterns impacting wheat harvests heavily influence WEAT.

Growth Trajectory

Growth is tied to global wheat supply and demand dynamics. Changes to the fund's holdings would reflect adjustments in futures contract selection based on the contract expiration dates.

Competitive Edge

WEAT's primary advantage lies in its focused exposure to wheat futures, offering a direct play on wheat prices compared to broader agricultural commodity ETFs. This specialization allows for more targeted investment based on wheat-specific market analyses. Teucrium's expertise in managing commodity futures funds provides a competitive edge in navigating the complexities of the wheat market. However, this specialization also represents a disadvantage when the sector experiences downward trends.

Volatility

WEAT exhibits high volatility due to its reliance on wheat futures contracts, which are subject to price swings based on supply, demand, and geopolitical events.

Market Risk

Market risk is significant, as wheat prices are sensitive to weather events, government policies, and global trade dynamics.

Ideal Investor Profile

Ideal investors are those seeking short to medium-term exposure to wheat prices, often those with expertise in commodity markets and risk tolerance for volatile investments.

Market Risk

WEAT is suitable for active traders looking to capitalize on short-term price movements in wheat, rather than long-term investors seeking stable growth.

Teucrium Wheat Fund (WEAT) offers investors a focused way to participate in the wheat market through futures contracts. Its performance depends heavily on global supply, demand, and geopolitical factors affecting wheat prices. While providing targeted exposure, the fund's volatility makes it suitable for active traders and those familiar with commodity market risks. WEAT's specialization is both an advantage and a potential disadvantage, depending on prevailing market conditions. Investors should consider their risk tolerance and understanding of commodity futures before investing.

Data Sources:

• Teucrium Funds Website
• ETF.com
• Yahoo Finance

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investing in commodity ETFs involves risk, including the potential loss of principal.