The Teucrium Wheat Fund (NYSE: WEAT) provides investors unleveraged direct exposure to wheat without the need for a futures account. The Teucrium Wheat Fund was also designed to reduce the effects of backwardation and contango.
The investment objective of the Fund is to have the daily changes in percentage terms of the Shares’ Net Asset Value ("NAV") reflect the daily changes in percentage terms of a weighted average of the closing settlement prices for three futures contracts for wheat (“Wheat Futures Contracts”) that are traded on the Chicago Board of Trade (“CBOT”), specifically: (1) the second-to-expire CBOT Wheat Futures Contract, weighted 35%, (2) the third-to-expire CBOT Wheat Futures Contract, weighted 30%, and (3) the CBOT Wheat Futures Contract expiring in the December following the expiration month of the third-to-expire contract, weighted 35%.
Teucrium Wheat Fund (the “Fund”) is a commodity pool that issues Shares that may be purchased and sold on the NYSE Arca. The Fund is a series of the Teucrium Commodity Trust (“Trust”), a Delaware statutory trust organized on September 11, 2009. The Fund is one of seven series of the Trust; each series operates as a separate commodity pool. Additional series of the Trust may be created in the future. The Trust and the Fund operate pursuant to the Trust’s Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”). The Fund was formed and is managed and controlled by the Sponsor, Teucrium Trading, LLC. The Sponsor, a limited liability company formed in Delaware on July 28, 2009, is registered as a commodity pool operator (“CPO”) with the Commodity Futures Trading Commission (“CFTC”) and is a member of the National Futures Association (“NFA”).
WEAT has limited operating history, so there is little performance history to serve as a basis for you to evaluate an investment in the Trust. Investing in Wheat Interests subjects WEAT to the risks of the wheat market, and this could result in substantial fluctuations in the price of WEAT’s Shares. Unlike mutual funds, WEAT generally will not distribute dividends to Shareholders.
Investors may choose to use WEAT as a means of investing indirectly in wheat or as a vehicle to hedge against the risk of loss, and there are risks involved in such investments and activities. The Sponsor has limited experience in operating a commodity pool, which is defined as an enterprise in which several individuals contribute funds in order to trade futures or futures options collectively.
Commodities and futures generally are volatile and are not suitable for all investors.
The Teucrium Wheat Fund is not a mutual fund or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and is not subject to regulation thereunder.
Shares of the Teucrium Wheat Fund are not FDIC insured, may lose value, and have no bank guarantee.
All supporting documentation will be provided upon request.
Foreside Fund Services, LLC is the distributor for the Teucrium Wheat Fund.
© 2013 TEUCRIUM TRADING, LLC. All rights reserved.