Teucrium Trading, LLC, the Sponsor of agricultural futures-based ETFs, announced that the Teucrium AiLA Long-Short Agriculture Strategy ETF (“OAIA” or “the Fund”) will begin trading on the New York Stock Exchange today under the ticker OAIA. The Fund seeks to track the AiLA-S033 index (“the Index”), a strategy holding both long and short positions in agricultural futures contracts listed on the Chicago Mercantile Exchange (CME) and the Intercontinental Exchange (ICE).
OAIA allows investors to access a sophisticated, long-short strategy through a passively managed, liquid, and tax efficient fund. The AiLA-S033 index has a strong track record dating back to 2017, with an annualized return of 18.77% through 2021, and 20.43% YTD (as of 12/19/2022). The Index has historically posted positive returns through commodity, stock, and bond market downturns. Note, however, that past performance does not guarantee future results.
“Given recent volatility in financial markets, we believe that now is an opportune time for investors to consider diversifying their portfolios with market-neutral, long-short strategies,” said Sal Gilbertie, CEO of Teucrium. “OAIA is a unique opportunity for investors to access an agricultural hedge fund-like strategy through an exchange-traded, and relatively low-cost offering.”
The Fund will hold both long and short positions in agricultural futures contracts, including corn, wheat, soybeans, soybean products, sugar, cotton, coffee, and cocoa, according to the AiLA-S033 index. The Index is powered by OPALai’s AI-driven technology and data analytics.
“We are excited to partner with a top-tier technology and data analytics firm in OPALai, and to launch the Teucrium AiLA Long-Short Agriculture Strategy ETF,” said Jake Hanley, Managing Director and Senior Portfolio Strategist at Teucrium. “We believe OAIA stands to benefit from both Teucrium’s wealth of experience trading commodity futures and OPALai’s cutting-edge technology and quantitative approach to index design.” Note that an investment cannot be made directly into an index and unlike funds, indexes do not carry fees, expenses, or taxes.
Teucrium has more than a decade of experience sponsoring agricultural exchange traded products. OAIA joins Teucrium’s existing slate of exchange traded products:
- Ticker: CORN – Teucrium Corn Fund
- Ticker: WEAT – Teucrium Wheat Fund
- Ticker: SOYB – Teucrium Soybean Fund
- Ticker: CANE – Teucrium Sugar Fund
- Ticker: TAGS – Teucrium Agricultural Fund (Diversified Passive Strategy)
- Ticker: TILL – Teucrium Agricultural Strategy No K-1 (Diversified Passive Strategy)
About Teucrium Trading LLC
Teucrium Trading is an ETF provider focused on Agriculture and provides a full suite of services for futures and derivatives-based ETFs. Its mission is to empower investors with the knowledge and tools necessary to intelligently design well diversified portfolios. Teucrium’s suite of Exchange Traded Products have revolutionized the way commodity ETFs are structured; Teucrium’s products are widely available to investors and advisors in traditional brokerage accounts.
Investments involve risk. Principal loss is possible.
OAIA is a “non-diversified” fund and because it can invest a greater percentage of its assets in particular securities including agricultural commodities, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified fund. Agricultural commodities are affected by consumer tastes, demand, government, economic conditions, weather and seasonal factors and demographic trends. OAIA is a commodity pool regulated by the CFTC. OAIA is new and has a limited operating history to evaluate.
Commodities and futures generally are volatile, and instruments whose underlying investments include commodities and futures are not suitable for all investors.
Futures investing is highly speculative and involves a high degree of risk. An investor may lose all or substantially all their investment. Investing in commodity interests subject each Fund to the risks of its related industry. These risks could result in large fluctuations in the price of a particular Fund's respective shares. Funds that focus on a single sector generally experience greater volatility. Futures may be affected by Backwardation: a market condition in which a futures price is lower in the distant delivery months than in the near delivery months. As a result, the fund may benefit because it would be selling more expensive contracts and buying less expensive ones on an ongoing basis; and Contango: A condition in which distant delivery prices for futures exceeds spot prices, often due to costs of storing and inuring the underlying commodity. Opposite of backwardation. As a result, the Fund’s total return may be lower than might otherwise be the case because it would be selling less expensive contracts and buying more expensive one.
The Fund’s short selling involves the sale of commodities. The short seller profits if the commodity’s price declines. If a shorted commodity increases in value, a higher price must be paid to cover the short sale, resulting in a loss. The amount the Fund could lose on a short sale is theoretically unlimited.
The Fund employs a “passive management” approach that seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index. There is no guarantee that the Fund will achieve a high degree of correlation to the underlying Index and therefore achieve its investment objective. Differences in timing of trades and valuation as well as fees and expenses, may cause the fund to not exactly replicate the index known as tracking error.
ETFs are subject to capital gains tax and taxation of dividend income. However, ETFs are structured in such a manner that taxes are generally minimized for the holder of the ETF. However, capital gains tax may be incurred by the investor after the ETF is sold.
An investor should consider investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information which may be obtained by visiting or clicking on this link www.teucrium.com. Read the prospectus carefully before investing.
Teucrium Investment Advisors, LLC is an investment adviser in Burlington, Vermont and is a wholly owned limited liability company of Teucrium Trading, LLC. Teucrium Investment Advisors, LLC is registered with the Securities and Exchange Commission (SEC). Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Teucrium Investment Advisors, LLC only transacts business in states in which it is properly registered or is excluded or exempted from registration. A copy of Teucrium Investment Advisors, LLC’s current written disclosure brochure filed with the SEC which discusses among other things, Teucrium Investment Advisors, LLC’s business practices, services and fees, is available through the SEC’s website at: www.adviserinfo.sec.gov.
Distributor: Foreside Fund Services, LLC.
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Contacts
Sal Gilbertie
Jake Hanley
802-540-0019
contact@teucrium.com