ETF, Commodity, and Agriculture Glossary

The pivotal month in the index, the month in which the ETP is always invested. For CORN, that month is December.

A financial institution authorized to create or redeem ETF shares in large blocks known as creation units.

A futures market condition where longer-dated contracts trade at a discount to near-term prices. 

A common unit of measure for interest rates and other percentages in finance. One basis point is equal to 1/100th of 1%, or 0.01%, or 0.0001, and is used to denote the percentage change in a financial instrument.

The midpoint between the highest bid and the lowest offer on the listing exchange as of the time that the Fund’s NAV is calculated.

Founded in 1973, the CBOT was established for the trading of call options on listed stock. Today it is the second largest securities exchange in the country and the largest options exchange in the world.

A Commodity-based swap (Corn, Wheat, Soybeans, Sugar) agreement that is cleared through the CBOT or its affiliated provider of clearing services.

The 4 p.m. ET closing price of the shares of the Fund as reported on the NYSE Arca.

An exchange-traded fund that provides exposure to commodities, such as agriculture, energy, or metals, through futures contracts, swaps, or underlying physical storage.

The federal agency created by Congress in 1975 to regulate futures trading and protect participants against manipulation and fraud, through its administration of the Commodities Exchange Act.

An enterprise in which several individuals contribute funds in order to trade futures or futures options collectively. Commodity pools are analogous to mutual funds in that many investors pool their assets to gain the power to make trades that they could not make individually. Additional benefits include bypassing margin requirements and limiting risk to the amount invested in the pool.

A futures market condition where longer-dated contracts trade at a premium to near-term prices. Also known as "carry."

The minimum number of shares of an exchange-traded product (ETP) that will be delivered to an Authorized Purchaser (AP) in exchange for the predefined basket of securities underlying the ETP’s securities, known as a Creation Basket. The shares can also be sold back in a predefined basket to the ETP; this process is called a Redemption Basket.

The process of allocating capital in a way that reduces the exposure to any one particular asset or risk.

Exchange-traded fund

Exchange-traded product

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.

A legal agreement to buy or sell a commodity at a predetermined price at a specified time in the future. 

An Intraday Indicative Value is published by NYSE Alternext US for each ETP as a reference value to be used in conjunction with other ETP market information. The Intraday Indicative Value for an ETP is typically published under a separate symbol every 15 seconds over the Consolidated Tape and calculated throughout the trading day based on the last sale prices of the securities specified for creation and redemption plus any estimated cash amounts associated with the creation unit, all on a per-ETP share basis. This value is also referred to as an “Underlying Trading Value,” “Indicative Optimized Portfolio Value (IOPV),” and “Intraday Value” in various places such as the prospectus and marketing materials for different ETPs. The Intraday Indicative Value is designed to give investors a sense of the relationship between a basket of securities that are representative of those owned in the ETP and the share price of the ETP on an intraday basis.

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.

The ability and rate of speed for an asset to be converted into cash.

The amount of equity required for an investment in futures contracts.

A buy or sell order to be executed immediately at current market prices.

The current price at which an asset or service can be bought or sold.

The private-sector, self-regulatory agency of the futures industry, established in 1981.

The per-share value of an ETF’s underlying net assets, calculated daily.

A preset level of ownership established by the U.S. Commodity Futures Trading Commission (CFTC) that limits the number of derivative contracts a trader, or any affiliated group of traders and investors may own.

The amount (stated in dollars or percent) by which the selling or purchase price of an ETP is greater than (Premium) or less than (Discount) its face amount/value or Net Asset Value (NAV).

When an investor replaces an existing futures position with a new one having a later expiration date.

The nearest calendar month traded for that commodity future contract.

25% of each of the individual Teucrium fund indexes below

A weighted average of daily changes in the closing settlement prices of (1) the second-to-expire Corn Futures Contract traded on the CBOT, weighted 35%, (2) the third-to-expire CBOT Corn Futures Contract, weighted 30%, and (3) the CBOT Corn Futures Contract expiring in the December following the expiration month of third-to-expire contract, weighted 35%. To convert to an index, 100 is set to $25, the opening day price of CORN.

A weighted average of daily changes in the closing settlement prices of (1) the second-to-expire Soybean Futures Contract traded on the CBOT, weighted 35%, (2) the third-to-expire CBOT Soybean Futures Contract, weighted 30%, and (3) the CBOT Soybean Futures Contract expiring in the November following the expiration month of the third-to-expire contract, weighted 35% (except as described in the following paragraph). To convert to an index, 100 is set to $25, the opening day price of SOYB.

A weighted average of daily changes in the closing settlement prices of (1) the second-to-expire Sugar No.11 Futures Contract traded on ICE Futures, weighted 35%, (2) the third-to-expire Sugar No.11 Futures Contract, weighted 30%, and (3) the Sugar No.11 Futures Contract expiring in the March following the expiration month of the third-to-expire contract, weighted 35%. To convert to an index, 100 is set to $25, the opening day price of CANE.

A weighted average of the closing settlement prices of three Wheat Futures Contracts that are traded on the 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 contracts, weighted 35%. To convert to an index, 100 is set to $25, the opening day price of WEAT.

Teucrium (pronounced two-cree-um) is a large, widely distributed genus of perennial herbs, shrubs, or subshrubs native to the Mediterranean region to western Asia.

The total of all investor dollars invested in the fund.

The extent to which investors have ready access to any required financial information. For the Teucrium Corn Fund, holdings and the Net Asset Value (NAV) are reported on the website daily.

The weighted average price is reflected on the Holdings page when there are multiple fill prices for the purchase or sale of a specific commodity contract on a given day. The calculation is as follows: [Absolute value of (dollar value of contracts bought minus dollar value of contracts sold)] divided by [net number of contracts bought or sold].