Clear definitions of key terms used across Teucrium’s ETFs, research, and market commentary—provided for general educational purposes.
Glossary
Authorized Participant (AP):
A financial institution authorized to create or redeem ETF shares in large blocks known as creation units.
Backwardation
A futures market condition where longer-dated contracts trade at a discount to near-term prices.
Commodity ETF
An exchange-traded fund that provides exposure to commodities, such as agriculture, energy, or metals, through futures contracts, swaps, or underlying physical storage.
Contango
A futures market condition where longer-dated contracts trade at a premium to near-term prices. Also known as "carry."
Form 1099
A standard tax form issued for ETFs that are structured to be taxed as regulated investment companies (RICs). Investors in these funds will receive a Form 1099 reporting dividends, capital gains, and other taxable activity.
Futures Contract
A legal agreement to buy or sell a commodity at a predetermined price at a specified time in the future.
K-1
A tax document issued by certain investment vehicles organized under the Securities Act of 1933. It reports an investor’s share of income, deductions, and other tax items.
Net Asset Value (NAV)
The per-share value of an ETF’s underlying net assets, calculated daily.
This glossary is provided for educational purposes only. It does not constitute investment, tax, or legal advice. Please consult a qualified professional for guidance specific to your situation.
