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Teucrium AiLA Long-Short Agriculture Strategy ETF Declared Effective

Teucrium Trading, LLC, the Sponsor of agricultural futures-based ETFs, today announced that its registration for the Teucrium AiLA Long-Short Agriculture Strategy ETF (“OAIA” or “the Fund”) was made effective.

The Fund is set to begin trading on the New York Stock Exchange under the ticker OAIA on December, 20, 2022. The Fund is designed to track the AiLA-S033 Index (the “Index”), a strategy holding both long and short positions in agricultural futures contracts listed on the Chicago Mercantile Exchange (CME) and the Intercontinental Exchange (ICE).

OAIA allows investors to access a sophisticated, long-short strategy through a passively-managed, liquid, and tax efficient fund. The Fund will hold both long and short positions in agricultural futures contracts, including corn, wheat, soybeans, soybean products, sugar, cotton, coffee, and cocoa.

“We are very excited to announce the effectiveness of the Teucrium AiLA Long-Short Agriculture Strategy ETF. The fund combines Teucrium’s commodities and futures trading experience with AiLA’s quantitative and rules-based approach to index creation,” said Sal Gilbertie, CEO of Teucrium. “Long-short agricultural strategies are typically made available to institutional investors through hedge funds and private placements. As an ETF, OAIA will provide all investors the opportunity to invest in an exchange-traded and relatively low cost long-short agricultural strategy directly through their brokerage account.” Note that an investment cannot be made directly into an index and unlike funds, indexes do not carry fees, expenses, or taxes.

Powered by AiLA’s machine learning technology, the AiLA-S033 index posted an average annual return of 18.77% between 2017 and 2021. Year-to-date, the Index has returned 20.05%, with a Sharpe ratio of 2.37 (as of 12/15/2022). Note, however, that past performance does not guarantee future results.

"Agricultural commodities tend to revert to their cost of production over time. OAIA will provide investors the potential to profit during those periods when supply and demand are working towards an equilibrium,” said Jake Hanley, Managing Director and Senior Portfolio Strategist at Teucrium. “Since our founding, Teucrium has been at the forefront of ETF innovation. It is our mission to simplify access to alternative markets and strategies. We are taking another big step forward and advancing that mission with OAIA.”

Teucrium has more than a decade of experience sponsoring agricultural exchange traded products. OAIA joins Teucrium’s existing slate of exchange-traded products:

  • Ticker: CORN – Teucrium Corn Fund
  • Ticker: WEAT – Teucrium Wheat Fund
  • Ticker: SOYB – Teucrium Soybean Fund
  • Ticker: CANE – Teucrium Sugar Fund
  • Ticker: TAGS – Teucrium Agricultural Fund (Diversified Passive Strategy)
  • Ticker: TILL – Teucrium Agricultural Strategy No K-1 (Diversified Passive Strategy)

About Teucrium Trading LLC

Teucrium Trading is an ETF provider focused on Agriculture and provides a full suite of services for futures and derivatives-based ETFs. Its mission is to empower investors with the knowledge and tools necessary to intelligently design well diversified portfolios. Teucrium’s suite of Exchange-Traded Products has revolutionized the way commodity ETFs are structured; Teucrium's products are widely available to investors and advisors in traditional brokerage accounts.

Prospectus: www.teucrium.com

The Teucrium AiLA Long-Short Agriculture Strategy ETF is effective but not yet operational. No orders are being accepted at this time. It is anticipated the fund will become operational on or about 12/20/2022.

Investments involve risk. Principal loss is possible.

OAIA is a “non-diversified” fund and because it can invest a greater percentage of its assets in particular securities including agricultural commodities, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified fund. Agricultural commodities are affected by consumer tastes, demand, government, economic conditions, weather and seasonal factors and demographic trends. OAIA is a commodity pool regulated by the CFTC. OAIA is new and has a limited operating history to evaluate.

Commodities and futures generally are volatile, and instruments whose underlying investments include commodities and futures are not suitable for all investors.

Futures investing is highly speculative and involves a high degree of risk. An investor may lose all or substantially all their investment. Investing in commodity interests subject each Fund to the risks of its related industry. These risks could result in large fluctuations in the price of a particular Fund's respective shares. Funds that focus on a single sector generally experience greater volatility. Futures may be affected by Backwardation: a market condition in which a futures price is lower in the distant delivery months than in the near delivery months. As a result, the fund may benefit because it would be selling more expensive contracts and buying less expensive ones on an ongoing basis; and Contango: A condition in which distant delivery prices for futures exceeds spot prices, often due to costs of storing and inuring the underlying commodity. Opposite of backwardation. As a result, the Fund’s total return may be lower than might otherwise be the case because it would be selling less expensive contracts and buying more expensive one.

The Fund’s short selling involves the sale of commodities. The short seller profits if the commodity’s price declines. If a shorted commodity increases in value, a higher price must be paid to cover the short sale, resulting in a loss. The amount the Fund could lose on a short sale is theoretically unlimited.

The Fund employs a “passive management” approach that seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index. There is no guarantee that the Fund will achieve a high degree of correlation to the underlying Index and therefore achieve its investment objective. Differences in timing of trades and valuation as well as fees and expenses, may cause the fund to not exactly replicate the index known as tracking error.

ETFs are subject to capital gains tax and taxation of dividend income. However, ETFs are structured in such a manner that taxes are generally minimized for the holder of the ETF. However, capital gains tax may be incurred by the investor after the ETF is sold.

Sharpe Ratio: A risk-adjusted measure calculated using standard deviation and excess return to determine reward per unit of risk.

An investor should consider investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information which may be obtained by visiting or clicking on this link www.teucrium.com. Read the prospectus carefully before investing.

Teucrium Investment Advisors, LLC is an investment adviser in Burlington, Vermont and is a wholly owned limited liability company of Teucrium Trading, LLC. Teucrium Investment Advisors, LLC is registered with the Securities and Exchange Commission (SEC). Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Teucrium Investment Advisors, LLC only transacts business in states in which it is properly registered or is excluded or exempted from registration. A copy of Teucrium Investment Advisors, LLC’s current written disclosure brochure filed with the SEC which discusses among other things, Teucrium Investment Advisors, LLC’s business practices, services and fees, is available through the SEC’s website at: www.adviserinfo.sec.gov.

Distributor: Foreside Fund Services, LLC.

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