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Teucrium Launches Teucrium AiLA Long-Short Base Metals Strategy ETF

Teucrium Trading, LLC, the Sponsor of commodity futures-based ETFs, announced that the Teucrium AiLA Long-Short Base Metals Strategy ETF (“OAIB” or “the Fund”) will begin trading on the New York Stock Exchange today under the ticker OAIB. The Fund seeks to track the AiLA-S022 index (“the Index”), a strategy holding both long and short positions in base metals futures contracts listed on the Chicago Mercantile Exchange (CME) and the London Metals Exchange (LME).

OAIB 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 aluminum, copper, lead, nickel, tin, and zinc, according to the AiLA-S022 index. The Index is powered by OPALai’s AI-driven technology and data analytics.

Teucrium has historically focused exclusively on agricultural markets. OAIB is Teucrium’s first non-agricultural offering.

“Teucrium’s team of experienced, dedicated futures traders is constantly striving to develop new investment products as we seek to make alternative markets more accessible,” said Sal Gilbertie, CEO of Teucrium. “Teucrium’s wealth of experience offering futures-based ETFs, combined with OPALai’s index creation technology, has enabled us to offer a second institutional-grade strategy as an ETF following the successful launch of OAIA in December.”

The AiLA-S022 index has a strong track record dating back to 2017, with an annualized return of 15.38% through 2022 and a Sharpe ratio of 1.86. Note, however, that past performance does not guarantee future results.

“Investors are increasingly looking to create more resilient portfolios. As such, they are turning to alternative investments and long-short strategies,” said Jake Hanley, Managing Director and Senior Portfolio Strategist at Teucrium. “Base metals are essential to the creation of hardware and technology we use every day. Yet, base metal futures prices are often volatile. Our long-short strategy provides investors with the potential to profit regardless of the market trend.”

Teucrium has more than a decade of experience sponsoring commodity futures-based exchange traded products. OAIB 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)
  • Ticker: OAIA – Teucrium AiLA Long-Short Agriculture Strategy Fund

About Teucrium Trading LLC

Teucrium Trading is an ETF provider offering 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 have revolutionized the way commodity ETFs are structured; Teucrium's products are widely available to investors and advisors in traditional brokerage accounts.

Investments involve risk. Principal loss is possible.

OAIB is a “non-diversified” fund and because it can invest a greater percentage of its assets in particular securities including base metal commodities, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified fund. Base metal commodity prices are affected by industrial and consumer demand, government, and economic conditions. OAIB is a commodity pool regulated by the CFTC. OAIB 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.

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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