For RIAs Seeking Tactical Precision and Real Asset Exposure
It’s no secret to advisors that market volatility has become a constant presence, not a passing phase. With the VIX rising nearly 40 percent in Q1 20251, persistent rate uncertainty, and fresh geopolitical flashpoints, many portfolios are again being stress-tested for resilience.
Against this backdrop, flows into real assets continue to gain momentum. Advisors aren’t just seeking alternatives; they’re actively rethinking the role of uncorrelated, real-return exposures. Agriculture, in particular, is an interesting asset class to consider as a commodity play.
Agricultural ETFs may offer a compelling, liquid way to help mitigate volatility without compromising clarity or control.
Historically, agricultural commodities have shown low correlation to traditional risk assets2. During equity sell-offs or fixed income dislocations, agricultural commodities have often followed their own path, driven more by weather patterns, planting cycles, and global food demand than by Fed statements or tech earnings.
In March 2020, for example, while the S&P 500 dropped over 16 percent, corn futures prices were only down roughly 9 percent, and wheat futures prices were up more than 8 percent3. More recently, during the inflation surge of 2022, corn and wheat futures products posted double-digit gains at a time when both stocks and bonds were under pressure.4
This independent behavior is what makes agriculture potentially useful in volatile environments:
Unlike some broad-basket commodity funds, Teucrium’s ETFs offer access to individual agricultural markets—sugar, corn, wheat, soybeans—through futures-based structures designed with precision and accessibility in mind.
Each Teucrium ETF employs a split-year futures ladder, spreading contracts across different expirations to reduce roll timing risk and reflect more representative pricing. This structure may provide greater stability and a clearer connection to the underlying commodity's market dynamics than front-month-only exposure.
For RIAs, this precision enables a more nuanced allocation strategy. Rather than defaulting to a one-size-fits-all agriculture fund, you can:
Teucrium’s agricultural ETFs have been around for more than a decade. Here are some ways in which they may have been deployed in portfolios.
CORN as a Geopolitical Risk Hedge
Corn prices are sensitive to global export flows and weather shocks. When war or trade tensions hit major producers, CORN may act as a portfolio counterweight to declining equity sentiment.
WEAT in an Inflationary Environment
With food prices historically contributing heavily to CPI, wheat exposure may offer a direct line to inflation trends. Through WEAT, advisors can obtain price exposure for their clients as they seek a targeted inflation hedge.
SOYB: Exposure to a Renewable Future
Soybeans are emerging as a key feedstock in the expanding renewable diesel market, playing an increasingly important role in the global shift toward low-carbon energy. As demand for clean fuels rises, soybean oil has become a critical input for next-generation biofuels.
CANE to Hedge Against Market Downturns
Sugar is a pervasive commodity across the global economy. Sugar futures prices have low historical correlations to stocks. As such, investors looking to craft a more resilient and diversified portfolio might consider CANE.
Like any portfolio tool, agricultural ETFs require thoughtful integration. RIAs allocating to these funds should, among other things, account for:
When framing real asset exposure with clients, focus on agriculture’s role as a structural diversifier rather than a speculative tilt. Clients are increasingly aware of food prices and global supply issues. Positioning agricultural exposure as a volatility management tool may resonate more than as a pure return play.
Market volatility isn’t going away. But it doesn’t need to be feared; it needs to be managed with intent. For RIAs, agricultural ETFs may provide unique flexibility within a broader volatility strategy. They offer both the tactical flexibility and precision to respond to short-term shocks and the structural benefits of long-term diversification. And with Teucrium’s focused products, advisors can make allocations that align with their philosophy, not just the market cycle.
Learn more about how Teucrium ETFs may fit into your model portfolios. Download the ebook, Why Investors Are Increasingly Turning to Commodity ETFs.
Blog Footnotes:
1 Bloomberg Finance L.P., “Cboe Volatility Index (VIX),” accessed May 18, 2025, https://www.bloomberg.com/quote/VIX:IND
2 Teucrium, “How Agricultural ETFs Fit into a Diversified Portfolio,” Teucrium Blog, accessed June 18, 2025, https://blog.teucrium.com/knowledge-center/how-agricultural-etfs-fit-into-diversified-portfolio
3 Bloomberg Finance L.P. Performance data for 03/02/2020 - 03/31/2020
4 Bloomberg Finance L.P. Performance data for 12/31/2021 - 06/30/2022
Important Disclosures and Risk
This material must be preceded or accompanied by a prospectus. Please read the prospectus carefully before investing. To obtain a current prospectus visit www.teucrium.com.
This material is not an offer or solicitation of any kind to buy or sell any securities outside of the United States of America.
Shares of the Funds are not FDIC Insured, may lose value, and have no bank guarantee. All supporting documentation provided upon request.
CORN, CANE, SOYB, and WEAT are commodity pools regulated by the Commodity Futures Trading Commission (CFTC). These Funds, which are ETPs, are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder. The funds do not track the spot price of corn, sugar, soybeans or wheat. Because the Funds will invest primarily in commodity futures contracts and other derivative instruments based on the price of the underlying commodities, an investment in the Funds will subject the investor to the risks of that commodity market, and this could result in substantial fluctuations in the price of the Funds’ shares.
Commodities and futures generally are volatile and are not suitable for all investors.
Futures investing is highly speculative and involves a high degree of risk. An investor may lose all or substantially all of an investment. Investing in commodity interests subject each Fund to the risks of its related industry. These risks could result in large fluctuations in the price of a particular Fund's respective shares. Funds that focus on a single sector generally experience greater volatility.
Commodities futures is subject to market risk. Market risk is the risk that the value of the investments to which the Funds are exposed will fall, which could occur due to general market or economic conditions or other factors.
An investment in the Fund involves risk, including possible loss of principal. Exchange-traded funds (ETFs) trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETF's net asset value (NAV), and are not individually redeemable directly with the ETF. Brokerage commissions and ETF expenses will reduce returns. ETFs are subject to specific risks, depending on the nature of the underlying strategy of the Fund, which should be considered carefully when making investment decisions. For a complete description of the Fund’s principal investment risks, please refer to the prospectus.
Rebalancing/Reallocating can entail transaction costs and tax consequences that should be considered when determining a rebalancing/reallocation strategy.
Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.
Past performance is not a guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.
Index performance returns do not reflect any management fees, transaction costs or expenses and is not illustrative of the performance of the Teucrium ETFs. Indexes are unmanaged. It is not possible to invest directly in an index.
The VIX is a trademarked ticker symbol for the Chicago Board Options Exchange Market Volatility Index, a popular measure of the implied volatility of S&P 500 index options. Often referred to as the fear index or the fear gauge, it represents one measure of the market's expectation of stock market volatility over the next 30-day period.
The Standard & Poor's 500 (S&P 500) Index is a free-float weighted index that tracks the 500 most widely held stocks on the NYSE or NASDAQ and is representative of the stock market in general. It is a market value weighted index with each stock's weight in the index proportionate to its market value.
The Consumer Price Index (CPI) is a measure of inflation compiled by the US Bureau of Labor Studies.
Teucrium Trading, LLC is the Sponsor for CORN, CANE, SOYB, and WEAT.
PINE Distributors LLC is the Marketing Agent for CORN, CANE, SOYB, and WEAT, and is not affiliated with Teucrium Investment Advisors, LLC and Teucrium Trading, LLC.
Teucrium Investment Advisors, LLC is an investment adviser in Burlington, Vermont and is a wholly owned limited liability company of Teucrium Trading, LLC. Teucrium Investment Advisors, LLC is registered with the Securities and Exchange Commission (SEC). Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Teucrium Investment Advisors, LLC only transacts business in states in which it is properly registered or is excluded or exempted from registration.
Please note, the information provided here is for informational purposes only and investors should determine for themselves whether a particular service or product is suitable for their investment needs. Please refer to the disclosure and offering documents for further information concerning specific products or services.
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