Teucrium Brings 2x Leverage to Wheat and Corn Markets with New ETFs

How Do These ETFs Work

WXET and CXRN are daily leveraged ETFs that seek to deliver 200% of the daily price performance of wheat and corn futures, respectively. Both funds achieve their investment objectives by utilizing futures contracts traded on Commodity Futures Trading Commission (CFTC)-registered exchanges, along with collateral investments such as cash or high-quality securities.

WXET focuses on wheat futures, while CXRN targets corn futures, amplifying exposure with leverage to help traders capitalize on short-term price movements. However, these funds are not designed for long-term investment and require active management, as returns are compounded daily.

WXET and CXRN each have a total net expense ratio of 0.95% (after fee waivers).

Why Investors Should Consider These ETFs

WXET and CXRN are designed for traders with clear short-term outlooks on wheat and corn prices. These leveraged ETFs provide 2x daily price exposure, enabling investors to potentially amplify returns using less capital than direct futures contracts.

They can also serve as effective tools for hedging or making tactical adjustments in response to market drivers like geopolitical tensions, weather disruptions, or broader economic trends that influence commodity price volatility.

Sal Gilbertie, CEO of Teucrium, highlighted the importance of these funds in today's market: “Corn and wheat are among the most widely traded agricultural commodities in the world, and their supply and demand patterns are often driven by factors that can arise unexpectedly, such as weather and geopolitics, making each an active and dynamic commodity for traders. Adding leveraged ETFs for corn and wheat provides active traders with additional tools through which to express their views on these commodities.”

As for any leveraged product, it is important to understand the associated risks. The effects of compounding can cause performance to deviate from the expected 2x return if held beyond a single trading day. Because of this, WXET and CXRN are best suited for experienced investors who actively manage their portfolios and are familiar with the complexities of leveraged strategies.

Looking for Long-Term Agro Exposure?

If you’re looking for long-term exposure to corn or wheat, Teucrium has been offering simple, non-leveraged options for over a decade with their futures-based CORN and WEAT ETFs. The funds also trade on the NYSE and have expense ratios of 0.20% and 0.19%, respectively.

Other options include exposure to soybeans

, sugarcane

CANE

+1.35%

, or a diversified basket of these agricultural commodities through the TAGS

TAGS

+0.24%

and TILL

TILL

+0.39%

ETFs. For more details, you can visit their website.

About the Issuer

Teucrium Investment Advisors, a leader in commodity-focused investment solutions, is dedicated to providing innovative tools for accessing the futures markets. Through its ETFs, Teucrium offers cost-efficient, simplified exposure to key agricultural commodities, enabling investors to navigate these markets without directly managing futures contracts. With WXET and CXRN, Teucrium continues to expand its offerings, empowering knowledgeable investors to efficiently engage with the dynamic and fast-paced world of commodity trading.

 

 

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.