Agricultural production will need to increase to feed the growing global population. In 2019, the global agricultural commodities market was valued at $8.7 trillion. The market is projected to reach $24 trillion by 2025, and this presents a huge opportunity for investors.
These are the details investors interested in purchasing shares of the fund should know.
The fund’s investment area and return target
The ReelShares Agricultural Commodities Fund invests at least 80% of its assets in agricultural commodities companies. These companies range from those that provide farm machinery, fertilizers, crop chemicals to those that produce processed food. The fund invests in U.S. domestic and overseas companies.
The fund targets an annual return of 30%.
ReelShares Agricultural Commodities Fund share class
The ReelShares Agricultural Commodities Fund shares are available in two share class options: individual investor class shares and institutional investor class shares.
The fund is open to individual and institutional investors who meet some basic investment requirements outlined below.
Initial investment requirements
The fund requires an initial investment minimum of $5,000 for the individual investor account. For additional share purchases, the minimum transaction amount is $100.
The fund requires an initial investment minimum of $10,000 for the institutional investor account. The minimum transaction account for additional share purchases is $1,000.
Automatic investment plan requirements
ReelShares Agricultural Commodities Fund investors can set up automatic investment plans to purchase shares regularly.
Individual investors can set up regular purchase plans in minimum amounts of $1,000 for each transaction.
Institutional investors can set up regular purchase plans in minimum amounts of $2,000 for each transaction.
ReelShares Agricultural Commodities Fund investor fees
The fund charges an annual fee to investor accounts. The fee is assessed on the account value. Individual investor accounts attract a fee of 1.91%, and institutional investor accounts attract a fee of 1.11%.
The fund may assess a small quarterly fee on accounts whose balances drop below the minimum investment requirements. The fee is waived for accounts on the automatic investment plan.
You may purchase shares of the fund directly from Reel Shares or through a financial intermediary. The shares can be traded openly on the NYSE.