Teucrium Launches Actively Managed ETF Focused on Growth

RSMV is an actively managed fund that looks to generate long-term capital appreciation for its investors. The fund has a net expense ratio of 95 basis points. 

To build a portfolio set for capital appreciation, RSMV seeks out companies that offer strong growth prospects. This strategy includes companies of any cap size, though the fund primarily focuses on large caps.

Since RSMV functions on a longer time horizon, the fund may hold companies that have had their market caps drop or rise since it was first purchased. Overall, the fund’s portfolio is expected to slate somewhere between 20 to 50 securities.

When it comes to selecting growth securities, RSMV utilizes a top-down approach. This approach evaluates the macro environment to best measure the weight for sectors and individual securities. However, the fund might opt for a bottom-up approach to sift through companies within individual categories.

Additionally, the fund may also tap into growth strategies by investing in other ETFs or REITs. During periods of higher volatility, RSMV may also allocate toward fixed income securities, cash, or cash equivalents, to protect the fund’s investments during periods of market turmoil. There is no particular limit on how much of RSMV’s assets may be allocated in this manner. 

Choosing to invest in an active growth strategy can make a great deal of sense at the moment. The flexibility of the actively managed ETF wrapper can offer distinct offensive and defensive benefits.

When used offensively, active management can help a fund better capitalize on current opportunities and market trends. Meanwhile, the fund’s active fixed income plan can help RSMV better perform amid market turmoil. 

RSMV is now the ninth Teucrium ETF to be listed in U.S. markets. One of the largest Teucrium ETFs, the Teucrium Wheat Fund (WEAT C), has over $110 million in assets under management. 

For more news, information, and analysis, visit the Commodities Channel.