USG vs WEAT

USGBUSCF Gold Strategy Plus Income Fund

WEATBTeucrium Wheat Fund

In short

USG Gold with a paycheck attached. USG holds claims on real gold bars plus collateralized futures, sells call options against that gold, and distributes quarterly, at one of the lowest fees in the commodity-futures crowd.

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

USG The Fund seeks long-term results that generally correspond to gold-price performance while generating dividend income from selling gold call options and collateral interest. It obtains gold exposure through gold warrants, collateralized futures, and related derivatives.

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

Why people hold it

• USG At 0.45% a year it charges well under the 0.79% cohort median, and less than top-ranked commodity peers PDBC, SOYB and WEAT.
• Gold that throws off cash: the fund writes call options against its gold exposure and earns collateral interest, then pays shareholders quarterly.uscfinvestments.com
• Exposure comes via COMEX gold warrants (ownership claims on bars in licensed depositories) and fully collateralized futures, actively run through a Cayman subsidiary capped at 25% of assets.alpsinc.com
• USCF states the fund delivers its gold-plus-income strategy without a K-1, sparing the tax-form headache common to commodity products.uscfinvestments.comalpsinc.com

• 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

• USG Covered calls swap upside for income. Above the strike plus premium collected, further gold gains go to the option buyer, while the fund keeps the downside if gold slides.alpsinc.com
• A small fund that trades thinly, so bid-ask spreads can run wider than on the household-name gold ETFs.
• Payouts can include return of capital, meaning part of a distribution may be capital coming back rather than income the fund earned.

• 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 USG profile⁠

Full WEAT profile⁠