Teucrium Trading, LLC, a sponsor of commodity futures-based ETFs, has announced that the Teucrium AiLA Long-Short Base Metals Strategy ETF 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).
The firm writes that 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 aluminium, 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, and 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,” says 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 annualised return of 15.38 per cent 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,” says 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 ETPs. 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