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Agreements | 6 Months Ended
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Dec. 31, 2019
Agreements [Abstract] |
Agreements | (4) Agreements (a) Management Fee Each Fund pays the Sponsor a sponsor fee (the "Sponsor Fee") in consideration of the Sponsor's advisory services to the Funds. Additionally, each Fund pays its respective commodity trading advisor a license and service fee (the "CTA fee"). Effective January 1, 2018 and later extended, the Sponsor has agreed to waive receipt of the Sponsor Fee for RISE and/or assume RISE's expenses (excluding brokerage fees, interest expense, and extraordinary expenses) so that RISE's total annual expenses do not exceed 1.00% per annum through January 31, 2021. Further, effective January 1, 2018, RISE's CTA fee, calculated daily and paid monthly in arrears, was reduced from .50% per annum to .20% per annum of average daily net assets. In addition to the reduction in the expense limit, effective January 1, 2018, RISE's Sponsor Fee, calculated daily and paid monthly, became the greater of 0.15% of its average daily net assets, or $75,000, and the fees for Principal Financial Officer and Chief Compliance Officer services provided to RISE by the Sponsor were each increased to $25,000 per annum. Certain additional fees paid to the Sponsor for tax return preparation and regulatory reporting fees were also increased. Effective April 1, 2019, the fee paid to the Sponsor for tax return preparation was reduced from $100,000 per year to $50,000 per year. BDRY pays the Sponsor an annual Sponsor Fee, monthly in arrears, in an amount calculated as the greater of 0.15% of its average daily net assets, or $125,000. BDRY also paid an annual fee to Breakwave, monthly in arrears, in an amount equal to 1.45% of BDRY's average daily net assets. As of March 22, 2018, Breakwave has agreed to waive its CTA fee to the extent necessary, and the Sponsor has voluntarily agreed to correspondingly assume the remaining expenses of BDRY such that Fund expenses do not exceed an annual rate of 3.50%, excluding brokerage commissions and interest expense, of the value of BDRY's average daily net assets (the "BDRY Expense Cap," and together with the RISE Expense Cap, the "Expense Caps"). The assumption of expenses by the Sponsor and waiver of BDRY's CTA fee are contractual on the part of the Sponsor and Breakwave, respectively. The waiver of BDRY's CTA fees, pursuant to the undertaking, amounted to $6,561 and $10,462, for the three months ended December 31, 2019 and 2018, respectively and $16,213 and $23,499, respectively, for the six months ended December 31, 2019 and 2018, as disclosed in the Combined Statements of Operations. The Funds currently accrue their daily expenses up to the applicable Expense Cap. At the end of each month, the accrued amount is remitted to the Sponsor as the Sponsor has assumed, and is responsible for the payment of the routine operational, administrative and other ordinary expenses of the Funds in excess of the Funds' respective Expense Cap, which in the case of RISE, aggregated $100,323 and $17,920 for the three months ended December 31, 2019 and 2018, respectively, and $197,476 and $47,986 for the six months ended December 31, 2018, respectively and in the case of BDRY, aggregated $112,262 and $131,193 for the three months ended December 31, 2019 and 2018, respectively, and $217,318 and $256,383 for the six months ended December 31, 2019 and 2018, respectively, as disclosed in the Combined Statements of Operations. (b) The Administrator, Custodian, Fund Accountant and Transfer Agent Each Fund has appointed U.S. Bank, a national banking association, with its principal office in Milwaukee, Wisconsin, as the custodian (the "Custodian"). Its affiliate, U.S. Bancorp Fund Services, is the Fund accountant ("the Fund accountant") of the Funds, transfer agent (the "Transfer Agent") for Fund shares and administrator for the Funds (the "Administrator"). It performs certain administrative and accounting services for the Funds and prepares certain SEC, NFA and CFTC reports on behalf of the Funds. (U.S. Bank and U.S. Bancorp Fund Services are referred to collectively hereinafter as "U.S. Bank"). RISE has agreed to pay U.S. Bank 0.05% of assets under management ("AUM"), with a $50,000 minimum annual fee payable for its administrative, accounting and transfer agent services and 0.01% of AUM, with an annual minimum of $4,800 for custody services. RISE paid U.S. Bank $14,479 and $14,191 for the three months ended December 31, 2019 and 2018, respectively, and $28,958 and $28,382 for the six months ended December 31, 2019 and 2018, respectively, as disclosed in the Combined Statements of Operations. Effective March 22, 2018, BDRY has agreed to pay U.S. Bank 0.05% of AUM, with a $45,000 minimum annual fee payable for its administrative, accounting and transfer agent services and 0.01% of AUM, with an annual minimum of $4,800 for custody services. BDRY paid U.S. Bank $15,548 and $15,476 for the three months ended December 31, 2019 and, 2018, respectively, and $31,096 and $30,952 for the six months ended December 31, 2019 and 2018, respectively, as disclosed in the Combined Statements of Operations. (c) The Distributor The Funds pay ETFMG Financial LLC. (the "Distributor"), an affiliate of the Sponsor, an annual fee for statutory and wholesaling distribution services and related administrative services equal to the greater of $15,000 or 0.02% of the Funds' average daily net assets, payable monthly. Pursuant to the respective Marketing Agent Agreement between the Sponsor, each Fund and the Distributor, the Distributor assists the Sponsor and the applicable Fund with certain functions and duties relating to distribution and marketing services to the applicable Fund, including reviewing and approving marketing materials and certain regulatory compliance matters. The Distributor also assists with the processing of creation and redemption orders. RISE incurred $3,906 and $4,410 in distribution and related administrative services for the three months ended December 31, 2019 and 2018, respectively, and $7,812 and $8,820 for the six months ended December 31, 2019 and 2018, respectively, as disclosed in the Combined Statements of Operations. BDRY incurred $3,977 and $4,158 for the three months ended December 31, 2019 and 2018, respectively, and $7,954 and $8,316 for the six months ended December 31, 2019 and 2018, respectively, as disclosed in the Combined Statements of Operations. RISE also pays the Sponsor an annual fee for wholesale support services equal to 0.1% of RISE's average daily net assets, payable monthly. BDRY pays the Sponsor an annual fee for wholesale support services of $25,000 plus 0.12% of BDRY's average daily net assets, payable monthly. RISE incurred $1,566 and $16,915 in wholesale support fees for the three months ended December 31, 2019 and 2018, respectively, and $3,583 and $31,671 for the six months ended December 31, 2019 and 2018, respectively, as disclosed in the Combined Statements of Operations. BDRY incurred $6,827 and $7,167 in wholesale support fees for the three months ended December 31, 2019 and 2018, respectively, and $13,910 and $14,547 for the six months ended December 31, 2019 and 2018, respectively, as disclosed in the Combined Statements of Operations. (d) The Commodity Broker SG Americas Securities, LLC, a Delaware limited liability company, serves as RISE's clearing broker. MacQuarie Futures USA LLC, a Delaware limited liability company, serves as BDRY's clearing broker (such clearing broker, together with SG Americas Securities, LLC, the "Commodity Brokers"). In their capacity as clearing broker, the Commodity Brokers execute and clear the Funds' futures transactions and perform certain administrative services for the Funds. The Funds pay respective brokerage commissions, including applicable exchange fees, National Futures Association ("NFA") fees, give–up fees, pit brokerage fees and other transaction related fees and expenses charged in connection with trading activities in CFTC regulated investments. Brokerage commissions on futures contracts are recognized on a half-turn basis. The Sponsor does not expect brokerage commissions and fees to exceed 0.08% for RISE, and 0.76% for BDRY, of the net asset value of the applicable Fund for execution and clearing services on behalf of the applicable Fund, although the actual amount of brokerage commissions and fees in any year or any part of any year may be greater. The effects of trading spreads, financing costs associated with financial instruments, and costs relating to the purchase of U.S. Treasury Securities or similar high credit quality short-term fixed-income or similar securities are not included in the foregoing analysis. RISE incurred $927 and $19,434 in brokerage commissions and fees for the three months ended December 31, 2019 and 2018, respectively, and $2,793 and $35,862 for the six months ended December 31, 2019 and 2018, respectively, as disclosed in the Combined Statements of Operations. BDRY incurred $7,202 and $6,156 in brokerage commissions and fees for the three months ended December 31, 2019 and 2018, respectively, and $15,499 and $15,093 for the six months ended December 31, 2019 and 2018, respectively, as disclosed in the Combined Statements of Operations. (e) The Trustee Under the respective Amended and Restated Declaration of Trust and Trust Agreement (the "Trust Agreement") for each Fund, Wilmington Trust Company, the Trustee of each of the Funds (the "Trustee") serves as the sole trustee of each Fund in the State of Delaware. The Trustee will accept service of legal process on the Funds in the State of Delaware and will make certain filings under the Delaware Statutory Trust Act. Under the respective Trust Agreement for each Fund, the Sponsor has the exclusive management and control of all aspects of the business of the Fund. The Trustee does not owe any other duties to the Fund, the Sponsor or the Shareholders of the Fund. The Trustee has no duty or liability to supervise or monitor the performance of the Sponsor, nor does the Trustee have any liability for the acts or omissions of the Sponsor. RISE incurred $628 and $630, in trustee fees for the three months ended December 31, 2019 and 2018, respectively, and $1,256 and $1,260 for the six months ended December 31, 2019 and 2018, respectively, which is included in Other Expenses in the Combined Statements of Operations. BDRY incurred $628 and $630 in trustee fees for the three months ended December 31, 2019 and 2018, respectively, and $1,256 and $1,260 for the six months ended December 31, 2019 and 2018, respectively, which is included in Other Expenses in the Combined Statements of Operations. (f) Routine Offering, Operational, Administrative and Other Ordinary Expenses Effective January 1, 2018, the Sponsor, in accordance with the RISE Expense Cap limitation, paid all of the routine offering, operational, administrative and other ordinary expenses of RISE in excess of 1.00% (excluding brokerage commissions and interest expense) of RISE's average daily net assets, including, but not limited to, accounting and computer services, the fees and expenses of the Trustee, Administrator, Custodian, Transfer Agent and Distributor, legal and accounting fees and expenses, tax return preparation expenses, filing fees, and printing, mailing and duplication costs. RISE incurred $116,924 and $206,506 for the three months ended December 31, 2019 and 2018, respectively, and $236,108 and $400,559 for the six months ended December 31, 2019 and 2018, respectively, in routine offering, operational, administrative or other ordinary expenses. The assumption of Fund expenses above the RISE Expense Cap by the Sponsor, pursuant to the undertaking (as discussed in Note 4a), amounted to $100,323 and $17,920 for the three months ended December 31, 2019 and 2018, respectively, and $197,476 and $47,986 for the six months ended December 31, 2019 and 2018, respectively. The Sponsor, in accordance with the BDRY Expense Cap limitation paid, after the waiver of the CTA fee for BDRY by Breakwave, all of the routine offering, operational, administrative and other ordinary expenses of BDRY in excess of 3.50% (excluding brokerage commissions and interest expense) of BDRY's average daily net assets, including, but not limited to, accounting and computer services, the fees and expenses of the Trustee, Administrator, Custodian, Transfer Agent and Distributor, legal and accounting fees and expenses, tax return preparation expenses, filing fees, and printing, mailing and duplication costs. BDRY incurred $141,861 and $173,067 for the three months ended December 31, 2019 and 2018, respectively, and $288,164 and $351,703 for the six months ended December 31, 2019 and 2018, respectively, in routine offering, operational, administrative or other ordinary expenses. The CTA fee waiver for BDRY by Breakwave was $6,561 and $10,462 for the three months ended December 31, 2019 and 2018, respectively, and $16,213 and $23,499 for the six months ended December 31, 2019 and 2018, respectively. In addition, the assumption of Fund expenses above the BDRY Expense Cap by the Sponsor, pursuant to the undertaking (as discussed in Note 4a), amounted to $112,262 and $131,193 for the three months ended December 31, 2019 and 2018, respectively, and $217,318 and $256,383 for the six months ended December 31, 2019 and 2018, respectively. (g) Organizational and Offering Costs Expenses incurred in connection with organizing RISE and up to the offering of its Shares upon commencement of its investment operations on February 19, 2015, were paid by the Sponsor and Sit without reimbursement. Expenses incurred in connection with organizing BDRY and up to the offering of its Shares upon commencement of its investment operations on March 22, 2018, were paid by the Sponsor and Breakwave without reimbursement. Accordingly, all such expenses are not reflected in the Statements of Operations. The Funds will bear the costs of their continuous offerings of Shares and ongoing offering expenses. Such ongoing offering costs will be included as a portion of the Routine Offering, Operational, Administrative and Other Ordinary Expenses. These costs will include registration fees for regulatory agencies and all legal, accounting, printing and other expenses associated therewith. These costs will be accounted for as a deferred charge and thereafter amortized to expense over twelve months on a straight-line basis or a shorter period if warranted. For the three and six months ended December 31, 2019 and 2018, neither RISE nor BDRY incurred such expenses. (h) Extraordinary Fees and Expenses The Fund will pay all extraordinary fees and expenses, if any. Extraordinary fees and expenses are fees and expenses which are nonrecurring and unusual in nature, such as legal claims and liabilities, litigation costs or indemnification or other unanticipated expenses. Such extraordinary fees and expenses, by their nature, are unpredictable in terms of timing and amount. For the three and six months ended December 31, 2019 and 2018, respectively, nether RISE nor BDRY incurred such expenses.

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