Teucrium Trading LLC announced that its registration for the Teucrium Agricultural Strategy No K-1 ETF (TILL ) was made effective. The fund is set to begin trading on the New York Stock Exchange on May 17.
The fund is designed to provide investors diversified exposure to agricultural markets and is Teucrium’s first investment vehicle registered under the Investment Company Act of 1940.
TILL is an actively managed, long only, diversified agricultural ETF that provides futures price exposure to corn, wheat, soybean, and sugar markets. Listed under a ’40 Act structure, the fund issues a 1099 tax form rather than a K-1 tax form.
“TILL is a natural fit for our agricultural family of funds and is another example of our commitment to simplify investor access to these markets,” said Jake Hanley, managing director and senior portfolio strategist at Teucrium, in a news release.
Investors are seeking opportunities in agricultural markets and displaying unprecedented demand for agricultural commodity exposure. Global supply/demand imbalances, exacerbated by weather-related disruptions and geopolitical events, have led to higher commodity prices in recent months.
“Commodities historically have provided important diversification to portfolios, and data shows that they often outperform stocks during market corrections. With TILL, financial advisors will be able to include major food commodities in their model portfolios more easily and establish long-term allocations to commodities to help increase portfolio resilience,” Hanley added.
TILL joins Teucrium’s existing slate of ETFs, which includes the Teucrium Corn Fund (CORN ), the Teucrium Wheat Fund WEAT, the Teucrium Soybean Fund (SOYB ), the Teucrium Sugar Fund (CANE ), and the Teucrium Agricultural Fund (TAGS ).
TILL has an expense ratio of 1.49%.
For investors looking to buffer inflation, experts believe that commodities may also be beneficial for inflationary periods, making them a valuable hedge against the recent surge in the prices of goods and services over the last year.
It should be noted, however, that futures are volatile. Agricultural ETFs may offer better opportunities as short-term plays for savvy investors with the proper risk profile.
For more news, information, and strategy, visit the Commodities Channel.