Tag Archives: Teucrium Corn Fund

ETF Companies Seek Vanity Plates for Tickers

Rachel Louise Ensign wrote a funny story in the Wall Street Journal on ETF sponsors searching for memorable ticker symbols to help market their funds. Laura Morrison of the New York Stock Exchange says they’re like vanity plates on cars. But with 1,350 symbols already in use on the NYSE Arca, the biggest exchange for ETFs, and another 2,446 reserved for future products, it’s getting hard to find something catchy.

Ensign likes the literal, such as SOIL, the ticker for the Global X Fertilizers/Potash ETF, the figurative, such as DUST for the Direxion Daily Gold Miners Bear 3X Shares and the alluring, such as GGGG for the Global X Pure Gold Miners ETF.

My all-time favorite is humor, with MOO, the symbol for Market Vectors Agribusiness ETF. For literal, it’s hard to beat EGPT for Market Vectors Egypt Index ETF or CORN for the Teucrium Corn Fund. For figurative I like GULF for WisdomTree’s Middle East Dividend Fund
.

The question on whether these vanity plates help a fund’s marketing efforts ends up with a big possibly considering the Global X Farming ETF, with the ticker BARN, gets ready to shut down this month.

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Corn ETFs Get Creamed

ETFs that track corn got creamed today after the U.S. Department of Agriculture shocked the market with reports of larger-than-expected supplies and an increased forecast for the fall harvest.

The Teucrium Corn Fund (CORN) tumbled 8.7% to $40.50 and the iPath DJ-UBS Grains SubIndex Total Return ETN (JJG) sank 7.4% to $46.23 after federal regulators reported the number of acres planted this spring rose 5% to 92.3 million acres, the second highest planting since 1944.

This far exceeded analyst expectations of 90.7 million bushels as did the report that U.S. corn inventories as of June 1 fell 15% to 3.67 billion bushels instead of declining 23%. In early June corn prices rallied on expectations that the market would see shortages by the end of the summer.

The Teucrium Corn Fund is a commodity pool that holds three futures contracts, the second-to-expire CBOT Corn Futures Contract, weighted 35%; the third-to-expire CBOT Corn Futures Contract, weighted 30%; and the CBOT Corn Futures Contract that expires in the December following the expiration month of the third-to-expire contract, weighted 35%. The fund charges the exceptionally high expense ratio of 1.49%.

The iPath is an exchange-traded note, a debt instrument that doesn’t hold any assets. The Dow Jones-UBS Grains Subindex Total Return reflects the returns of three grains futures contracts.