CMDT vs WEAT

CMDTBPIMCO Commodity Strategy Active Exchange-Traded Fund

WEATBTeucrium Wheat Fund

In short

CMDT PIMCO took the standard commodity futures fund and added the thing it is known for: an actively managed bond portfolio sitting behind the commodity bets. The mandate is to beat the Bloomberg Commodity Index, not mirror it.

WEAT Wheat, straight up. Since 2011 this Teucrium fund has given brokerage-account investors pure-play exposure to CBOT wheat futures, laddered across three contract months rather than piled into the front month.

Stated mandate

CMDT The fund aims to achieve a total return that outperforms the Bloomberg Commodity Index Total Return, while maintaining prudent investment management.

WEAT The fund seeks cost-effective price exposure to the wheat market through futures for future delivery.

Why people hold it

• CMDT Active by design. The stated objective is to outperform the Bloomberg Commodity Index Total Return, not replicate it.
• Two engines in one ticker: swaps, futures and commodity-linked notes for the commodity exposure, an actively managed fixed income portfolio as the collateral behind them.
• A 1940 Act fund that routes commodity-linked exposure through a Cayman subsidiary, so holders get a 1099 rather than a partnership K-1.
• Global commodity reach spread across roughly 300 positions, with cash distributed quarterly.

• WEAT Costs 0.62% a year, under the typical fee for futures-based commodity funds. Cheap matters most when the thing you own throws off no income.
• The benchmark splits across three CBOT contracts: 35% second-to-expire, 30% third-to-expire, 35% the following December. Roll risk gets spread down the curve, not stacked on one month.teucrium.com
• Wheat exposure without a futures account: no margin posting, no roll management, no contract expiries on your calendar. Buy it like a stock, sell it like a stock.teucrium.com
• Among futures-based commodity funds, one of the stronger overall packages on cost and structure.

Worth knowing

• CMDT At 0.98% a year, it sits above cheaper index-based options in the commodity futures group such as PDBC (0.74%) and HARD (0.78%). Active management is what the premium buys.
• Tracking is not the goal here. Manager calls can push results away from the Bloomberg Commodity Index in either direction.
• The bond collateral sleeve brings interest rate and credit sensitivity that a plain futures-and-Treasuries commodity fund does not carry.

• WEAT It is a commodity pool taxed as a partnership, so shareholders get a Schedule K-1 with Section 1256 treatment (60% long-term, 40% short-term), not a 1099.teucrium.com
• The fund tracks wheat futures, not the spot price. When the curve slopes against you, returns can drift from the wheat headlines you read.teucrium.com
• One crop, one market, and weather sets the price. Swings here run hot compared with diversified commodity baskets, and the fund is built for price exposure, not income.

Full CMDT profile⁠

Full WEAT profile⁠