Commodity ETFs Like 'SOYB' Can Be a Volatility Safe Haven

Teucrium Trading, LLC, a leader in Agriculture Exchange Traded Products (ETPs), is ringing the closing bell at the New York Stock Exchange Friday to celebrate the Teucrium Soybean (NYSEArca: SOYB) fund.

SOYB seeks to have the daily changes in percentage terms of the shares’ NAV reflect the daily changes in percentage terms of a weighted average of the closing settlement prices for three futures contracts for soybeans that are traded on the Chicago Board of Trade. The fund seeks to achieve its investment objective by investing under normal market conditions in Benchmark Component Futures Contracts or, in certain circumstances, in other Soybean Futures Contracts traded on the CBOT or on foreign exchanges.

“We are honored that the New York Stock Exchange has extended this opportunity to our Soybean Fund. Investors and advisors are increasingly realizing the importance of agriculture in both their daily lives and in their investment portfolios,” said Sal Gilbertie, CEO of Teucrium Trading LLC.

The Teucrium Soybean Fund has seen net inflows year to date. Soybeans have been in the news recently as agriculture is a key aspect of US/China trade discussions.

China is the world’s largest importer of soybeans and the largest buyer of soybeans from the United States. External events including the trade war with China, the outbreak of African Swine Flu across Asia, and historically large inventories have moved soybean prices toward the lower end of a 40- year price range.

Soybeans are a source of protein when consumed directly in soy-based food like TOFU, soymilk, edamame,
boca burgers, miso soup, soy sauce, soybean oil, and Tofutti ice cream. Most soybeans are consumed indirectly as pork, chicken, and turkey products because soybeans are the major feedstock for swine and poultry.

Soybeans are also used in the production of biodiesel fuels. Due to their relative low historical correlations to equities agricultural investments such as soybeans may help improve a portfolio’s risk adjusted returns. Investors and Financial Advisors can find additional information and the prospectus for the Teucrium Soybean Fund at

During the bout of volatility that took hold of the capital markets near of the end of 2018, stocks and bonds did something they don’t normally do–exhibit positive correlation. As equities were getting roiled with volatility, the tried and true safe haven of Treasuries were falling as yields were climbing.

This lockstep between stocks and bonds was not something typically seen within the capital markets as both are prone to marching to the beat of their own drum. However, the music they were making was something analysts were listening to closely, but something investors would like to ignore.

Commodities, however, lack correlation to both stocks and bonds–something investors will appreciate moving forward as a volatility protection measure.

Now, with volatility returning due to trade war fears, commodity funds like SOYB are worth a look.

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