In the past seven trading sessions we have seen a surge in trading volume in Teucrium Corn Fund (NYSEArca: CORN) and a noticeable bounce off of the exchange traded fund’s 200-day moving average around the $40 a share level.
The corn ETF has logged impressive returns, up 10.6% year to date and up 59.1% in the trailing one year period.
To put this is context, a broad based agriculture fund such as PowerShares DB Agriculture (NYSEArca: DBA) is only up 0.9% year to date and it has returned 33% in the trailing one year time-frame. [ETF Spotlight: Agriculture]
CORN is unique in the ETF space in that it was designed to mitigate the effects of backwardation and contango in the futures markets, and invests in three futures contracts for corn as traded on the CBOT. [Commodity ETFs: Understanding Contango]
The fund uses a weighted average methodology, and allows for institutional investors to receive direct exposure to the corn futures market without having to open up a futures account.
Teucrium Corn Fund
Chart source: StockCharts.com.
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