United States Agriculture Index Fund
The United States Agriculture Index Fund® ("USAG") is an exchange-traded product that seeks to track the performance of the SummerHaven Dynamic Agriculture Index Total Return℠ (SDAITR), plus interest income from USAG’s holdings, less fund expenses. USAG is designed to be a convenient, cost-effective way for investors to access the returns of a portfolio of agriculture commodities futures contracts and is listed on the NYSE Arca.
The SDAITR is an index designed to reflect the performance of a portfolio of 14 agriculture commodity futures. The index is reformulated each month and reweights its components including: soybeans, corn, wheat, cotton, sugar, coffee, soybean oil, live cattle, feeder cattle, cocoa, lean hogs, Kansas City wheat, canola oil, and soybean meal.
The SDAITR uses market price signals, including backwardation and 12 month price change as part of its rules- based selection method. USAG is rebalanced each month to reflect these changes to the index.
United States Agriculture Index Fund's target is a portfolio of agriculture futures contracts designed to be an investment benchmark for agriculture as an asset class. The Agriculture Index is composed of agriculture futures contracts on major exchanges in the U.S. and Canada. The Agriculture Index attempts to maximize backwardation and minimize contango while using contracts in the liquid portions of the futures curve.
The portfolio consists of listed agricultural futures contracts and other agriculture-related futures and may consist of forwards and swap contracts. These investments will be collateralized by cash, cash equivalents and US government obligations with remaining maturities of two years or less.
Below are the 14 Eligible Agriculture Futures Contracts (the "Benchmark Component Agriculture Futures Contracts") that may comprise the Agriculture Index on a monthly basis:
|Soft Red Winter Wheat||Sugar||Feeder Cattle|
|Hard Red Winter Wheat||Cocoa||Lean Hogs|
For the month of December, the Benchmark Component Futures Contracts are:
|Soybeans NOV14||Corn DEC14||Wheat MAR14|
|Wheat (KCB) MAY14||Soybean Meal MAY14||Canola MAR14|
|Soybean Oil MAR14||Lean Hogs APR14||Feeder Cattle JAN14|
|Live Cattle FEB14||Cotton No.2 JUL14||Cocoa JUL14|
|Sugar #11 MAY14||Coffee JUL14|
- USAG provides a vehicle to take directional positions on commodity prices.
- USAG offers the convenience of an exchange-traded security (NYSE Arca).
- USAG permits commodity exposure without using a commodity futures account.
- USAG provides "equity-like" order flexibility, including market, limit, stop, stop limit and Good-Til-Cancelled ("GTC") orders.
- USAG provides market price, NAV and portfolio holdings on a daily basis.
|Intraday Indicative Value||USAG.IV|
|Minimum Trade||1 unit|
|Administrator||Brown Brothers Harriman & Co.|
|Distributor||ALPS Distributors, Inc.|
|Sponsor||United States Commodity Funds, LLC|