On Friday, Teucrium launched two new commodity-focused ETFs.
These two new funds offer leveraged exposure to the performance of agricultural commodities. Following an expense waiver, the funds have net expense ratios of 95 basis points.
For investors interested in corn futures, the Teucrium 2x Daily Corn ETF (CXRN ) may appeal. The fund seeks daily results that correspond to double the price of corn futures.
Meanwhile, the Teucrium 2x Daily Wheat ETF (WXET ) focuses on wheat. WXET looks to generate leveraged results to the daily performance of wheat futures.
Advantages of Leveraged ETFs
Many commodity investors understand corn and wheat are some of the most traded agricultural commodities on the market. Given the extent of trading these products see, investors can leverage CXRN and WXET to make short-term bets on where these commodity prices go.
Alongside market conditions, corn and wheat prices can very much be affected by changes in both weather and geopolitics. Analyzing and understanding these different factors can help investors better manage their bets on agricultural commodities.
Another perk of both CXRN and WXET is how the funds can give investors strong exposure to corn futures. Given the liquidity and transparency of the ETF wrapper, these funds can give investors a more straightforward means of engaging with commodities. These benefits come hand-in-hand with the cost efficiency of the ETF platform.
WXET and CXRN now get to leverage Teucrium’s extensive experience in navigating alternative markets. Since its founding in 2010, Teucrium has provided investors with innovative means of engaging with agricultural commodities.
“Adding leveraged ETFs for corn and wheat provides active traders with additional tools through which to express their views on these commodities,” said Sal Gilbertie, CEI of Teucrium. “We’re very pleased to be launching these funds and look forward to educating the marketplace about the roles they can play in portfolios and trading strategies.”
With CXRN and WXET now on the market, Teucrium has eight ETFs listed in the United States. One of Teucrium’s largest ETFs, the Teucrium Wheat Fund (WEAT ), has well over $120 million in assets under management.
For more news, information, and analysis, visit the Commodities Channel.
