Explore top agri commodity ETFs: WEAT, CORN, GRU, JJG & TAGS

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Explore top agri commodity ETFs: WEAT, CORN, GRU, JJG & TAGS

Explore top agri commodity ETFs: WEAT, CORN, GRU, JJG & TAGS
Image source: © Jirsak | Megapixl.com

Highlights

  • Teucrium Wheat Fund (WEAT) generated a 66% return YTD. Its expense ratio is 1.91%.
  • Teucrium Corn Fund (CORN) rose 05% YTD, and its expense ratio is 1.95%.
  • iPath Series B Bloomberg Grains Subindex Total Return ETN (JJG) has an expense ratio of 0.45%, and it returned 47% gains YTD.

Agriculture commodity ETFs monitor the price movements on agricultural commodity indexes. For profitability, these ETFs employ various strategies such as consumption-weighted baskets, production-weighted baskets, multi-factor models, etc.  

The Russia-Ukraine war has significantly impacted global agricultural supplies like wheat, corn, and soybean. These commodities are also subject to volatility due to weather and market factors. The prices of these essential items are soaring due to supply shortages. 

These ETFs invest in futures contracts and not in companies.
 

Here we discuss five agricultural commodities ETFs.

Teucrium Wheat Fund (WEAT)

Performance Year-to-date: 49.66% 
Expense Ratio: 1.91%
Assets Under Management: US$510.3 million

The WEAT ETF offers exposure to the wheat futures contracts, and it is the first pure-play wheat ETP in the market. It does not have exposure to spot wheat prices like other exchange-traded commodity products. 

This ETF does not concentrate holdings in the front months' futures but spreads the futures contracts across multiple maturities to minimize the impact on bottom-line returns. It uses a laddered strategy and a single asset weighing scheme.  

Launched in 2011 by Teucrium, WEAT tracks Teucrium Wheat Fund Benchmark Index. 

The ETF price moved in the range of US$12.75 to US$6.12 in the last 52 weeks and closed at US$10.88 on April 26, 2022. 

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Explore top agri commodity ETFs: WEAT, CORN, GRU, JJG & TAGS

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Teucrium Corn Fund (CORN)

Performance Year-to-date: 38.05%
Expense Ratio: 1.95%
Assets Under Management: US$295.4 million

This fund offers exposure to one of the most widely used agriculture commodities globally, Corn. CORN is unique with its various resources, and it diversifies across different maturities in its portfolio. The structure of the ETF is designed to mitigate the impact of contango and make it useful for investors with a long term outlook.

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This ETF started in 2010. The issuer is Teucrium. CORN ETF uses Teucrium Corn Fund Benchmark Index. The corn-focused ETF uses a laddered strategy and single assets weighing scheme.  

CORN ETF traded in the price range of US$29.94 to US$18.83 in the last 52 weeks and closed at US$29.68 on April 26, 2022.

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ELEMENTS Linked to the ICE BofAML Commodity Index eXtra Grains Total Return (GRU)

Performance Year-to-date: 32.35% 
Expense Ratio: 0.75%
Assets Under Management: US$14.3 million

This ETN (Exchange Traded Notes) offers exposure to futures-based price of corn, wheat, soybean, soybean oil and other commodities with minimum weightings in the broad-based agricultural products. The exposure to various commodities makes it a valuable when there is upward pressure on food prices.

ETN, a debt instrument, exposes investors to credit risk. But at the same time, the ETN structure also results in unique tax calculations. It consists of futures contracts. The futures curve slope may impact returns based on the environment and prices, meaning GRU does not track spot grain prices. 

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The Swedish government launched the GRU ETF in 2008. It tracks ICE BofAML Commodity Index eXtra Grains (Intraday Indicative). The grain focused ETF uses a laddered strategy, exchange-traded notes (ETN) structure and proprietary weighing scheme. 

GRU ETF closed at US$6.36 on April 25, 2022.  It traded in the range of US$4.07 to US$8.50 in the last 52 weeks.

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iPath Series B Bloomberg Grains Subindex Total Return ETN (JJG)

Performance Year-to-date: 34.37%
Expense Ratio: 0.45%
Assets Under Management: US$34.32 million

This ETN offers exposure to agricultural commodities such as wheat, corn, soybean and a specific basket of items. Being an ETN, JJG carries credit risk to the issuing institution. As the underlying index comprises futures contracts, JJG does not necessarily track the spot grains prices performance. 

Its return may be affected by the futures curve slope, depending on the market prices and overall environment. 

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JJG ETF was issued in 2018 by Barclay Capital. It tracks Bloomberg Grains Subindex. 

The grain focused ETF uses a multi-factor strategy and proprietary weighing scheme. It is also based on the ETN structure.

The ETF closed at US$88.47 on April 26, 2022. It traded in the range of US$98.50 US$59.48 in the last 52 weeks.

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Explore top agri commodity ETFs: WEAT, CORN, GRU, JJG & TAGS© Aprescindere | Megapixl.com

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Teucrium Agricultural Fund (TAGS)

Performance Year-to-date: 27.47%
Expense Ratio: 0.18%
Assets Under Management: US$34.1 million

This ETF offers exposure to four major agricultural commodities: corn, sugar, soybean, and wheat. Agricultural commodities investments are also used for hedging against inflation.

TAGS ETF holdings are not futures contracts, but other Teucrium offered ETFs that hold futures contracts linked to actual commodities. 

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This ETF was issued in 2012 by Teucrium, and it tracks Teucrium TAGS Index. It uses a laddered strategy and equal weighting scheme. Its structure is a commodity pool. 

TAGS closed at US$34.48 on April 26 and traded between US$37.91 and US$24.04 in the last 52 hours.

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Bottom line:

S&P GSCI Agriculture Index Spot has gained 27.93% year-to-date, while S&P 500 Index fell 12.40% in the same period. ETFs are considered safe for exposure to different asset classes; however, investors must analyze them in detail before investing.  

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