Fund Features & Risks | Blog

At Teucrium, our mission is to provide investors with the knowledge and tools necessary to intelligently design diversified portfolios. We do this by placing agricultural commodity futures in an Exchange Traded Product (ETP) format on the NYSE/Arca exchange accessible to both individual and institutional investors through traditional brokerage accounts. Our Funds are designed to offer liquidity, transparency, exposure, and capacity to agricultural commodity futures.

Teucrium’s Funds were designed to mitigate the impacts of contango and backwardation, situations that can occur during commodity trading which can affect the potential returns to investors. Our commodity ETPs invest in futures contracts and are not designed to track the spot price of any commodity, including the commodity to which they provide exposure.

Currently the well-being of citizens and economies all over the world are being heavily impacted by COVID-19. Economic turmoil associated with the pandemic has had wide-ranging and severe impacts to financial and commodity markets, including crude oil and gold. It is reasonable to assume that continued or even increased volatility in most markets will remain.

Historically speaking, increased market volatility tends to receive enhanced investor attention and, in some cases, presents both opportunities and dangers to new market entrants. Currently, many markets are experiencing this same phenomenon.

In order to help investors make informed decisions, we have summarized some of the risks and features of our products. The risk and features we included below are not all inclusive. Investors should consider carefully the risks described in the prospectus before making an investment decision. Additional information can also be found on the funds’ factsheet.

• Teucrium ETFs provide commodity investment exposure through Futures Contracts exclusive of spot month.
• Teucrium Funds do not expose investors to any physical commodity ownership.
• Commodities and futures can be volatile and are not suitable for all investors.
• Large price fluctuations can occur in agricultural and other commodity futures.
• In agriculture, weather can present some of the biggest impacts to prices.
• The United States Department of Agriculture (USDA) reports on these and other events.
• An investor can lose all or substantially all of their investment.
• There are no minimums to invest in Teucrium ETFs.
• There is no amount of time you must hold a Teucrium ETF.
• Teucrium ETFs do not provide access to, and are not designed or intended to, track spot commodity Prices.
• Teucrium ETFs track their own benchmarks designed by Teucrium.
• Teucrium ETFs roll futures contracts which may impacted long term returns because of Backwardation & Contango.
• An ETF may deviate from its benchmark due to adverse market conditions.
• Performance and fees are posted on the fund websites and factsheets.
• The funds could be impacted by government policy and position limits.

Additional external resource guidance can be found on the CFTC website, FINRA Website, and NFA website.