Pass on this ETF: Teucrium Sugar Fund

Article Excerpt

Narrowly focused agricultural commodity ETFs can give you spectacular returns when markets rise. However, there are risks to match. A good example is the TEUCRIUM SUGAR FUND $6.54 (New York symbol CANE), which uses futures contracts to invest in sugar. This fund has experienced high levels of volatility since its inception in September 2011, with regular movements of plus or minus 20% in short periods of time. The ETF launched close to the 2011 peak in sugar prices, which has been on a downtrend for the past eight years. Unsurprisingly, the fund has lost 74% of its value since inception. That’s not to say you wouldn’t have had some good years with the fund—such as a 30% return for the calendar year 2016 and regular jumps of 20% or more over short periods, such as the 27% gain in February 2014 or the 33% gain between April and June of 2016. Meanwhile, the fund has assets of only $10 million and charges an MER of 0.60%. The sugar…

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