BTCK
Industry:
Capital Markets

DESCRIPTION

Teucrium Commodity Trust is a Delaware statutory trust that operates a family of commodity ETFs giving investors direct exposure to agricultural commodity futures. The core products are four single-commodity ETFs — CORN (corn), WEAT (wheat), SOYB (soybeans), and CANE (sugar) — plus a fifth fund, TAGS, which holds equal allocations across all four. These funds trade on NYSE Arca like stocks, letting both institutional and retail investors gain commodity price exposure without opening a futures account. Customers use the funds to hedge commodity risk or to speculate on agricultural prices. Teucrium is managed by its sponsor, Teucrium Trading, which handles all management, trading, and compliance functions; the trust itself has no employees. Each fund tracks a benchmark composed of three futures contracts, deliberately avoiding the nearest-to-expire contract, spreading exposure across the futures curve to reduce roll cost drag in contango markets. Teucrium earns revenue primarily through a 1% annual management fee on AUM across the four single-commodity funds; TAGS charges no additional fee since its underlying funds already pay fees. AUM is driven by shares outstanding and commodity price levels. The funds also earn interest income on cash collateral held in U.S. Treasuries and money market funds, which offsets operating expenses. Teucrium is majority-owned by Van Eck Associates and founder Sal Gilbertie. The sponsor has explored expansion beyond agricultural ETFs, including a pending Bitcoin and carbon credit futures ETF filing, though the core franchise remains the four agricultural funds and TAGS.

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