Registration for the Teucrium AiLA Long-Short Agriculture Strategy ETF (OAIA ) was made effective and is scheduled to trade on the New York Stock Exchange on Tuesday. The fund is designed to track the AiLA-S033 Index, a strategy holding both long and short positions in agricultural futures contracts listed on the Chicago Mercantile Exchange and the Intercontinental Exchange.
OAIA allows investors to access a long-short strategy through a passively managed, liquid, and tax-efficient fund. The fund will hold both long and short positions in agricultural futures contracts, including corn, wheat, soybeans, soybean products, sugar, cotton, coffee, and cocoa.
“The fund combines Teucrium’s commodities and futures trading experience with AiLA’s quantitative and rules-based approach to index creation,” said Sal Gilbertie, CEO of Teucrium, in a news release. “Long-short agricultural strategies are typically made available to institutional investors through hedge funds and private placements. As an ETF, OAIA will provide all investors the opportunity to invest in an exchange-traded and relatively low cost long-short agricultural strategy directly through their brokerage account.”
Powered by AiLA’s machine learning technology, the AiLA-S033 index posted an average annual return of 18.77% between 2017 and 2021. Year-to-date, the index has returned 20.05%, with a Sharpe ratio of 2.37, as of December 15.
“Agricultural commodities tend to revert to their cost of production over time. OAIA will provide investors the potential to profit during those periods when supply and demand are working towards an equilibrium,” added Jake Hanley, managing director and senior portfolio strategist at Teucrium. “Since our founding, Teucrium has been at the forefront of ETF innovation. It is our mission to simplify access to alternative markets and strategies. We are taking another big step forward and advancing that mission with OAIA.”
OAIA joins Teucrium’s existing slate of exchange traded products, including the Teucrium Corn Fund (CORN ), the Teucrium Wheat Fund (WEAT ), the Teucrium Soybean Fund (SOYB ), the Teucrium Sugar Fund (CANE ), the Teucrium Agricultural Fund (TAGS ), and the Teucrium Agricultural Strategy No K-1 ETF (TILL ).
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