| Agreements | (4) Agreements (a) Management Fee The Fund pays the Sponsor an annual
management fee, monthly in arrears, in an amount calculated as the greater of 0.15% of its average daily net assets, or $75,000
effective February 20, 2016 ($56,250 prior to February 20, 2016) (the “Sponsor Fee”). The Sponsor Fee is paid in consideration
of the Sponsor’s advisory services to the Fund. Additionally, Sit receives an annual fee, monthly in arrears, for its services
equal to 0.50% effective January 27, 2016 (0.35% prior to January 27, 2016) of the Fund’s average daily net assets. As of
February 19, 2015, Sit has agreed to waive its license and service fee (“CTA fee”) and the Sponsor has voluntarily
agreed to correspondingly assume the remaining expenses of the Fund so that Fund expenses do not exceed an annual rate of 1.50%,
excluding brokerage commissions and interest expense, of the value of the Fund’s average daily net assets (the “Expense
Cap”). The assumption of expenses and waiver of the CTA fee are contractual on the part of the Sponsor and Sit, respectively,
through June 1, 2018. Effective January 1, 2017, the annual Sponsor Fee was reduced to $18,750. The waiver of the CTA fees, pursuant
to the undertaking, amounted to $17,060 and $22,205 for the three months ended March 31, 2017 and March 31, 2016, respectively,
and $46,460 and $36,620 for the nine months ended March 31, 2017 and March 31, 2016, respectively, as disclosed in the Statements
of Operations. The Fund currently accrues its daily expenses up to the 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 Fund in excess of the Expense Cap which aggregated $30,181 and $49,362 for the three months
ended March 31, 2017 and March 31, 2016, respectively, and $200,471 and $206,591 for the nine months ended March 31, 2017 and
March 31, 2016, respectively, as disclosed in the Statements of Operations. (b) The Administrator, Custodian, Fund Accountant
and Transfer Agent The 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 Fund, transfer agent
(the “Transfer Agent”) for Fund shares and administrator for the Fund (the “Administrator”). It performs
certain administrative and accounting services for the Fund and prepares certain SEC, NFA and CFTC reports on behalf of the Fund.
(U.S. Bank and U.S. Bancorp Fund Services are referred to collectively hereinafter as “U.S. Bank”). Effective February 19, 2016, the
Fund 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. For the first year of services, the Fund paid 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.
The Fund paid U.S. Bank $13,512 and $12,382 for the three months ended March 31, 2017 and March 31, 2016, respectively, and $41,136
and $37,418 for the nine months ended March 31, 2017 and March 31, 2016, respectively, as disclosed in the Statements of Operations. (c) The Distributor Alps Distributors, Inc. (“ALPS”)
provided statutory and wholesaling distribution services to the Fund through March 31, 2017. The Fund paid ALPS an annual fee
for such distribution services, equal to 0.02% of Fund average daily net assets, with a minimum of $15,000 payable annually. Pursuant
to the Distribution Services Agreement between the Sponsor, the Fund and ALPS, the former distributor assisted the Sponsor and
the Fund with certain functions and duties relating to distribution and marketing services to the Fund, including reviewing and
approving marketing materials and certain regulatory compliance matters. ALPS also assisted with the processing of creation and
redemption orders. Esposito Securities LLC (“Esposito”)
provided statutory and wholesaling distribution services to the Fund through November 30, 2015. The Fund paid Esposito an annual
fee for such distribution services, equal to 0.02% of Fund average daily net assets, with a minimum of $15,000 payable annually.
Pursuant to the Distribution Services Agreement between the Sponsor, the Fund and Esposito, the former distributor assisted the
Sponsor and the Fund with certain functions and duties relating to distribution and marketing services to the Fund, including
reviewing and approving marketing materials and certain regulatory compliance matters. Esposito also assisted with the processing
of creation and redemption orders. The Fund incurred $3,699 and $3,729
in distribution and related administrative services for the three months ended March 31, 2017 and March 31, 2016, respectively,
and $11,465 and $11,269 for the nine months ended March 31, 2017 and March 31, 2016, respectively, as disclosed in the Statements
of Operations. Effective April 1, 2017, the Sponsor
entered into a Marketing Agent Agreement (the “Marketing Agent Agreement”) on behalf of the Trust and the Fund with
ETFMG Financial LLC. (“ETFMG”), pursuant to which ETFMG will provide certain marketing services to the Fund. The Fund
pays an annual fee for such distribution services and related administrative services equal to 0.02% of the Fund’s average
daily net assets, with a minimum of $15,000 payable annually. Pursuant to the Marketing Agent Agreement between the Sponsor, the
Fund and ETFMG, ETFMG assists the Sponsor and US Bank Fund Services, Inc. with certain functions and duties relating to distribution
and marketing, including reviewing and approving marketing materials. (d) The Commodity Broker SG Americas Securities, LLC (the
“Commodity Broker”), a Delaware limited liability company, serves as the Fund’s clearing broker. In its capacity
as clearing broker, the Commodity Broker executes and clears the Fund’s futures transactions and performs certain administrative
services for the Fund. The Fund pays 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 0.204% of the net asset value of the Fund for execution and clearing services on behalf of the
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.
The Fund incurred $7,718 and 8,648 in brokerage commissions and fees for the three months ended March 31, 2017 and March 31, 2016,
respectively, and $19,688 and $18,571 for the nine months ended March 31, 2017 and March 31, 2016, respectively, as disclosed
in the Statements of Operations. (e) The Trustee Under the Amended and Restated
Declaration of Trust and Trust Agreement (the “Trust Agreement”), Wilmington Trust Company, the Trustee of the Fund
(the “Trustee”) serves as the sole trustee of the Fund in the State of Delaware. The Trustee will accept service of
legal process on the Fund in the State of Delaware and will make certain filings under the Delaware Statutory Trust Act. Under
the Trust Agreement, 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. The Fund incurred $1,233 and $1,243, in trustee fees for the three months ended March 31, 2017 and March 31, 2016, respectively,
and $3,753 and $3,755 for the nine months ended March 31, 2017 and March 31, 2016, respectively, which is included in Other Expenses
in the Statements of Operations. (f) Routine Offering, Operational, Administrative
and Other Ordinary Expenses The Sponsor, in accordance with
the Fund’s Expense Cap limitation pays all of the routine offering, operational, administrative and other ordinary expenses
of the Fund in excess of 1.50% (excluding brokerage commissions and interest expense) of the Fund’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. The Fund incurred $106,141 and $153,251, respectively, for the three months ended March 31, 2017
and March 31, 2016, and $406,001 and $396,596 for the nine months ended March 31, 2017 and March 31, 2016, respectively, in routine
offering, operational, administrative or other ordinary expenses. The CTA fee waiver by Sit and the
assumption of Fund expenses above the Expense Cap by the Sponsor, pursuant to the undertaking (as discussed in Note 4a), amounted
to $17,060 and $30,181, respectively, for the three months ended March 31, 2017, $22,205 and $49,362, respectively, for the three
months ended March 31, 2016, $46,460 and $200,471, respectively, for the nine months ended March 31, 2017, and $36,620 and $206,591,
respectively, for the nine months ended March 31, 2016. (g) Organizational and Offering Costs Expenses incurred in connection
with organizing the Fund 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. Accordingly, all such expenses
are not reflected in the Statements of Operations. The Fund will bear the costs of its continuous offering 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 nine months ended
March 31, 2017 and 2016, the Fund did not incur 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 nine months ended March
31, 2017 and 2016, respectively, the Fund did not incur such expenses. |
