USCF ETF Trust (ALUM)ALUM

USCF Aluminum Strategy Fund (ALUM) Summary

Profile:

USCF Aluminum Strategy Fund (ALUM) is an actively managed exchange-traded fund that invests primarily in aluminum-related companies worldwide. It seeks to achieve long-term capital appreciation by investing in a diversified portfolio of common stocks, preferred stocks, warrants, exchange-traded notes, options, and other instruments related to aluminum producers, processors, and users. ALUM has a high allocation to the industrial metals sector and employs a non-diversified investment approach.

Objective:

The primary investment goal of ALUM is to achieve long-term capital appreciation through investments in the aluminum industry.

Issuer:

Company: USCF Investments Reputation and Reliability: USCF Investments is a privately held investment management firm founded in 2004. The firm specializes in thematic exchange-traded funds (ETFs) and has a strong reputation for innovation and performance. Management: The fund is managed by USCF Investments' experienced portfolio management team, which has a deep understanding of the aluminum industry.

Market Share:

ALUM has a market share of approximately 0.1% in the commodity-based ETF category.

Total Net Assets:

As of October 27, 2023, ALUM has total net assets of approximately $11 million.

Moat:

ALUM's competitive advantages include:

• Unique Investment Focus: The fund provides investors with exposure to a niche market within the commodity sector, offering diversification beyond traditional broad-based commodity ETFs.
• Active Management: The fund's active management strategy allows for flexibility in selecting investments and potentially outperforming the benchmark.
• Experienced Management Team: The portfolio management team has a strong track record in the aluminum industry.

Financial Performance:

ALUM has a track record of outperforming its benchmark, the S&P Aluminum Index, over the past three years. However, it is important to note that past performance is not indicative of future results.

Growth Trajectory:

The long-term outlook for the aluminum industry is positive, driven by factors such as growing demand from the automotive and construction sectors. This suggests potential for continued growth in ALUM's assets and performance.

Liquidity:

ALUM has an average daily trading volume of approximately 2,000 shares. The bid-ask spread is typically around 0.1%.

Market Dynamics:

The aluminum market is influenced by factors such as global economic growth, demand from key industries, and supply chain disruptions.

Competitors:

• Global X Aluminum (ALUMIN) - Market share: 0.2%
• Invesco DB Aluminum Index Tracking Fund (ALUM) - Market share: 0.1%

Expense Ratio:

ALUM has an expense ratio of 1.45%.

Investment Approach and Strategy:

• Strategy: ALUM employs an actively managed, non-diversified investment approach.
• Composition: The fund primarily invests in common stocks, preferred stocks, warrants, exchange-traded notes, options, and other instruments related to aluminum producers, processors, and users.

Key Points:

• Invests in a diversified portfolio of aluminum-related companies.
• Actively managed for potential outperformance.
• Experienced management team with deep industry knowledge.
• Positive long-term outlook for the aluminum industry.
• Relatively low expense ratio.

Risks:

• High volatility associated with the aluminum market.
• Exposure to specific risks of the aluminum industry.
• Potential for tracking error due to active management.

Who Should Consider Investing:

ALUM is suitable for investors seeking:

• Long-term capital appreciation through exposure to the aluminum industry.
• Diversification beyond traditional broad-based commodity ETFs.
• Tolerance for higher volatility.

Fundamental Rating Based on AI:

7/10

Justification:

ALUM benefits from a unique investment focus, active management, and an experienced team. The positive long-term outlook for the aluminum industry further supports its potential. However, the relatively small market share, high volatility, and potential tracking error present some risks that investors should consider.

Resources and Disclaimers:

• USCF Aluminum Strategy Fund website: https://uscfunds.com/etf/alum/
• Morningstar: https://www.morningstar.com/etfs/arcx/alum/performance

Disclaimer: The information provided in this summary is for informational purposes only and should not be considered investment advice. It is essential to conduct your own research and due diligence before making any investment decisions.