NEW YORK--(BUSINESS WIRE)--The Teucrium WTI Crude Oil Fund (NYSE: CRUD), one of two new single energy commodity Exchange Traded Products (ETPs) recently introduced by Teucrium Trading, LLC (Teucrium), began trading today on the New York Stock Exchange Arca.
Like the Teucrium Corn Fund (NYSE: CORN), which was launched in June 2010, and the Teucrium Natural Gas Fund (NYSE: NAGS), which began trading earlier this month, Teucrium’s new crude oil fund is expected to appeal to a broad spectrum of institutional and individual investors seeking portfolio diversification and direct exposure to commodities through an easily traded, transparent and unleveraged New York Stock Exchange Arca-listed security.
As with other Teucrium funds, the Teucrium WTI Crude Oil Fund is designed to mitigate the effects of the costs of carrying and rolling the futures contracts held in the fund, by rolling only twice a year, unlike many first generation commodity funds that typically hold contracts for only a single month and roll 12 times a year.
“By investing in the forward curve and sharply limiting portfolio turnover to twice a year,” Sal Gilbertie, President of Teucrium Trading, LLC, said, “the fund is designed to create the potential for better fund returns, both very important considerations for buy-and-hold investors.
“I can’t think of any class of commodity more pervasive, or that touches our lives more directly, than energy,” Gilbertie added. “With a growing global focus on energy, we think it’s likely that more and more investors will be interested in increasing their exposure to this increasingly important asset class in an investment vehicle like CRUD.”
Gilbertie and Kelly Teevan, both of whom have considerable experience in trading energy commodities, will be primarily responsible for trading and investment decisions for the fund as well as directing fund trades for execution.
About Teucrium Trading, LLC
Teucrium Trading, LLC (Teucrium) is an issuer of single-commodity-focused next generation Exchange Traded Products (“ETPs”). Teucrium designs investment vehicles that include transparency via the intraday indicative value (IIV), a publicly published valuation of the fund’s holdings provided by the NYSE, updated every 15 seconds as the underlying futures contracts trade throughout the day. With today’s ever-evolving commodities markets’ landscape, we believe Teucrium has the expertise to deliver ETPs for liquid investing and hedging activities without the use of leverage. For more information, please visit: www.teucrium.com.
The investment objective of the Teucrium WTI Crude Oil Fund (NYSE: CRUD) will be to have the daily changes in percentage terms of its shares’ Net Asset Value (“NAV”) reflect the daily changes in percentage terms of a weighted average of the closing settlement prices for futures contracts for WTI crude oil, also known as Texas Light Sweet crude oil (“Oil Futures Contracts”) traded on the NYMEX, specifically, (1) the nearest to spot June or December Oil Futures Contract, weighted 35%; (2) the June or December Oil Futures Contract following the aforementioned (1), weighted 30%; and (3) the next December Oil Futures Contract that immediately follows the aforementioned (2),weighted 35%; less the Fund’s expenses.
Investors should read the prospectus for CRUD for more complete information about CRUD, including risks, expenses, and other important terms. In addition, there can be no guarantee that CRUD will be able to achieve its investment goals. A copy of the prospectus may be obtained at http://www.teucriumcrudfund.com/pdfs/crud-prospectus.pdf, or by contacting the fund toll-free at 877-376-0082.
The investment objective of the Teucrium Natural Gas Fund (NYSE: NAGS) is to have the daily changes in percentage terms of its shares’ Net Asset Value (“NAV”) reflect the daily changes in percentage terms of a weighted average of the following: the nearest to spot (nearest to expiration or delivery) month March, April, October and November Henry Hub Natural Gas Futures Contracts traded on the NYMEX, weighted 25% equally in each contract month, less the Fund’s expenses.
Investors should read the prospectus for NAGS for more complete information about NAGS, including risks, expenses, and other important terms. In addition, there can be no guarantee that NAGS will be able to achieve its investment goals. A copy of the prospectus may be obtained at http://www.teucriumnagsfund.com/pdfs/nags-prospectus.pdf, or by contacting the fund toll-free at 877-376-0082.
The investment objective of the Teucrium Corn Fund is to have the daily changes in percentage terms of its 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 corn (“Corn Futures Contracts”) that are traded on the Chicago Board of Trade (“CBOT”), specifically (1) the second to expire CBOT Corn Futures Contract, 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 the third-to-expire contract, weighted 35%, less the Fund’s expenses.
Investors should read the prospectus for CORN for more complete information about CORN, including risks, expenses, and other important terms. In addition, there can be no guarantee that CORN will be able to achieve its investment goals. A copy of the prospectus may be obtained at http://www.teucriumcornfund.com/pdfs/corn-prospectus.pdf, or by contacting the fund toll-free at 877-376-0082.
Each Teucrium Fund is a commodity pool that will issue Shares that may be purchased and sold on the NYSE Arca. The Funds are series of the Teucrium Commodity Trust, a Delaware statutory trust organized on September 11, 2009. The Funds are managed and controlled by the Sponsor, Teucrium Trading, LLC. The Sponsor is a limited liability company formed in Delaware on July 28, 2009 that is registered as a commodity pool operator (“CPO”) with the CFTC and is a member of the NFA.
The Funds have a limited operating history, meaning there is little performance history that might serve as a basis to evaluate an investment in the Trust. Investing in a Fund subjects an investor to the risks of the applicable commodity market; these risks could result in substantial fluctuations in the price of Fund shares. Unlike mutual funds, the Funds generally will not distribute dividends to Shareholders. The Sponsor has limited experience operating commodity pools; a commodity pool is defined as an enterprise in which several individuals contribute funds in order to trade futures or futures options collectively. Investors may choose to use a Fund as a vehicle to hedge against the risk of loss and there are risks involved in hedging activities. Commodities and futures generally are volatile and are not suitable for all investors. The Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder. For a complete description of the risks associated with the Funds please refer to the applicable prospectus.
Shares of the Funds are not FDIC insured, may lose value and have no bank guarantee. Foreside Fund Services, LLC is the distributor for the Funds.