SOYB is the first ETF option for pure exposure to soybeans. The fund allocates exposure to three soybean futures contracts: holding 35% exposure to the second month to expire, 30% to the third month, and 35% to the November contracts. The fund avoids August and September contracts. This laddered strategy sets SOYB apart from its front-month benchmark, as it can work in its favor should soybeans fall into steep contango. Structured as a commodities pool, SOYB distributes K-1 forms and is marked-to-market yearly. Short-term traders can benefit from 60% of all gains being taxed as long term, regardless of holding period. But on the flip side, long-term holders may find the tax consequences troublesome since there's no beneficial tax rate for holding over one year.
