Teucrium Natural Gas Fund
Investment type: ETF (Exchange-Traded Fund); listed on the U.S. NYSE exchange
The Teucrium Natural Gas Fund provides investors unleveraged direct exposure to natural gas without the need for a futures account. The Teucrium Natural Gas Fund was also designed to reduce the effects of contango and backwardation. As a result of the diversified futures structure the Fund has also been specifically designed to reduce the cost of rolling the investment when compared to other funds that hold only a single month. The investment objective of the Fund is to have the daily changes in percentage terms of the Shares' Net Asset Value reflect the daily changes in percentage terms of a weighted average of the following: the nearest to spot month March, April, October and November Henry Hub Natural Gas Futures Contracts traded on the NYMEX, weighted 25% equally in each contract month.
Ticker symbol: NAGS
Fund manager: Teucrium Trading, LLC
Fund information from Teucrium Trading, LLC: Teucrium Natural Gas Fund
Fund launched: 2011/02/01 NEW!
The Teucrium Natural Gas Fund
The Teucrium Natural Gas Fund (NYSE: NAGS) provides investors unleveraged direct exposure to natural gas without the need for a futures account. The Teucrium Natural Gas Fund was also designed to reduce the effects of contango and backwardation. As a result of the diversified futures structure the Fund has also been specifically designed to reduce the cost of rolling the investment when compared to other funds that hold only a single month.
The investment objective of the Fund is to have the daily changes in percentage terms of the Shares’ Net Asset Value (“NAV”) reflect the daily changes in percentage terms of a weighted average of the following: the nearest to spot 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. This weighted average of the four Henry Hub Natural Gas Futures Contracts is referred to as the “Benchmark,” and the four Henry Hub Natural Gas Futures Contracts that at any given time make up the Benchmark are referred to as the “Benchmark Component Futures Contracts.”
Teucrium Natural Gas Fund is a commodity pool that will issue Shares that may be purchased and sold on the NYSE Arca. The Fund is a series of the Teucrium Commodity Trust (“Trust”), a Delaware statutory trust organized on September 11, 2009. Additional series of the Trust that will be separate commodity pools may be created in the future; the Fund currently has three series. The Trust and the Fund operate pursuant to the Trust’s Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”.) The Fund was formed and is 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.
NAGS has no operating history, so there is no performance history to serve as a basis for you to evaluate an investment in the Trust. Investing in Natural Gas Interests subjects NAGS to the risks of the natural gas market, and this could result in substantial fluctuations in the price of NAGS’ shares. Unlike mutual funds, NAGS generally will not distribute dividends to Shareholders.
Investors may choose to use NAGS as a means of investing indirectly in natural gas or as a vehicle to hedge against the risk of loss, and there are risks involved in such investments and activities. The Sponsor has limited experience in operating a commodity pool, which is defined as an enterprise in which several individuals contribute funds in order to trade futures or futures options collectively.
Commodities and futures generally are volatile and are not suitable for all investors.
The Teucrium Natural Gas Fund is not a mutual fund or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and is not subject to regulation thereunder.
Shares of the Teucrium Natural Gas Fund are not FDIC insured, may lose value, and have no bank guarantee.
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