First The CORN ETF, Now Five More Funds

by on June 22, 2010 | ETFs Mentioned:

Teucrium Trading LLC, the Brattleboro, Vermont-based firm that launched the first pure play corn ETF earlier this month, has now filed for SEC approval on a slew of single-commodity funds offering exposure to everything from crude oil to soybeans. The five proposed products include:

  • Teucrium Sugar Fund (CANE): Will invest in the second-to-expire Sugar No. 11 ICE futures contract weighted at 35%, the third-to-expire contract at 30%, and the contract expiring in the March following the expiration of the third-to-expire contract at 35%.
  • Teucrium Soybean Fund (SOYB): Will invest in the second-to-expire CBOT soybean futures contract weighted at 35%, the third-to-expire contract at 30%, and the contract expiring in the November following the expiration of the third-to-expire contract at 35%.
  • Teucrium Wheat Fund (WEAT): Will invest in various second-to-expire CBOT wheat futures contract weighted at 35%, third-to-expire contracts at 30%, and contract expiring in the December following the expiration of the third-to-expire contracts at 35%.
  • Teucrium WTI Crude Oil Fund (CRUD): Will invest in NYMEX oil futures, including the nearest-to-spot June or December contract with a 35% weighting, June or December contract following that contract at 30%, and the next December contract at 35%.
  • Teucrium Natural Gas Fund (NAGS): Will invest in the nearest-to-spot March, April, October, and November NYMEX natural gas futures contracts, each weighted equally.

“By filing registration statements for these five single-commodity ETFs, three of which are intended to offer individual exposure to these agricultural commodities, we are trying to break new ground,” said Sal Gilbertie, Founder and President of Teucrium Trading LLC, in a press release. “We design all of our ETFs for real exposure to the underlying commodity itself.”

Earlier this month Teucrium broke into the ETF industry with the launch of the Corn Fund (CORN), which offers exposure to one of the most important agricultural commodities through exchange-traded corn futures contracts. Teucrium is entering into a crowded corner of the ETF market, but seems determined to differentiate its products by the manner in which exposure to the underlying resources is provided. Whereas many existing exchange-traded commodity products invest primarily in near-month futures and “roll” holdings on a monthly basis, Teucrium spreads holdings across several different maturities, potentially lessening the impact of contango that has historically been .

Disclosure: No positions at time of writing.