USCF Gold Strategy Plus Income Fund (GLDX)

ETF USCF Gold Strategy Plus Income Fund (GLDM) Summary

Profile:

The USCF Gold Strategy Plus Income Fund (GLDM) is an actively managed exchange-traded fund (ETF) designed to provide investors with capital appreciation and income potential through investments primarily in gold bullion and gold-related securities.

The fund primarily invests in:

• Gold bullion: GLDM allocates approximately 70% of its assets to physical gold held in London vaults.
• High-grade gold mining common shares: Around 20% of the fund's assets are invested in publicly traded gold mining companies with low production costs and significant reserves.
• Government and corporate debt securities: The remaining 10% is invested in US government agency and corporate bonds that meet specific criteria for safety and liquidity.

Objective:

The primary investment objective of GLDM is to achieve capital appreciation and current income through its portfolio of gold bullion, gold mining stocks, and fixed-income securities.

Issuer:

The issuer of GLDM is U.S. Commodity Funds, LLC, a privately held company based in Maryland with a focus on developing exchange-traded products.

• Reputation and Reliability: U.S. Commodity Funds has operated since 2007 and has a good reputation in the industry.
• Management: The fund is managed by a team of experienced professionals with expertise in precious metals and fixed income investments.

Market Share:

GLDM is a relatively small player in the gold ETF market, with a market share of around 0.5%.

Total Net Assets:

As of November 2023, GLDM has approximately $130 million in total net assets.

Moat:

GLDM's competitive advantages include:

• Unique Strategy: Combining physical gold with gold mining stocks and fixed-income securities creates a diversified portfolio that aims to adapt to different market conditions.
• Active Management: The portfolio is actively managed by experienced professionals, offering potential flexibility and outperformance compared to passively managed gold ETFs.
• Low Correlation to Traditional Assets: Gold tends to have a low correlation to traditional asset classes, potentially offering portfolio diversification benefits.

Financial Performance:

GLDM has historically delivered positive returns, outperforming the price of gold over some periods. However, past performance is not indicative of future results.

Benchmark Comparison:

GLDM's performance is typically compared to the spot price of gold. While it has not consistently outperformed gold, the fund's diversified approach may offer additional opportunities for income generation.

Growth Trajectory:

The future growth of GLDM depends on various factors, including gold price movements, market demand for gold-related investments, and the performance of its underlying holdings.

Liquidity:

GLDM has an average trading volume of around 10,000 shares per day, which is considered moderately liquid.

Bid-Ask Spread:

The bid-ask spread for GLDM is typically around 0.1%, which is relatively low compared to other gold ETFs.

Market Dynamics:

Factors affecting the market environment for GLDM include:

• Economic Indicators: Inflation, interest rates, and economic growth can impact the demand for gold as an inflation hedge.
• Gold Price Volatility: Gold prices can fluctuate significantly due to various factors, including geopolitical events and central bank policies.
• Performance of Gold Mining Stocks: The performance of gold mining stocks can be influenced by factors such as gold prices, production costs, and company-specific developments.

Competitors:

Key competitors of GLDM include:

• SPDR Gold Trust (GLD) - Market Share: 36%
• iShares Gold Trust (IAU) - Market Share: 29%
• VanEck Merk Gold Trust (OUNZ) - Market Share: 3%

Expense Ratio:

GLDM has an expense ratio of 1.95%, which includes management fees and other operating expenses.

Investment Approach and Strategy:

• Strategy: GLDM follows an active management approach, aiming to outperform the price of gold by strategically allocating assets across physical gold, gold mining stocks, and fixed-income securities.
• Composition: The fund invests in a mix of physical gold, gold mining stocks, and fixed-income securities to achieve its investment objectives.

Key Points:

• GLDM offers a unique strategy that combines physical gold, gold mining stocks, and fixed-income securities.
• The fund is actively managed by experienced professionals.
• GLDM has historically delivered positive returns and outperformed the price of gold over some periods.
• The fund has a low correlation to traditional assets, potentially offering portfolio diversification benefits.

Risks:

• Volatility: Gold prices can fluctuate significantly, potentially impacting the fund's value.
• Market Risk: The fund is exposed to risks associated with the gold market, including changes in gold prices, supply and demand, and geopolitical events.
• Management Risk: The performance of GLDM depends on the success of its investment decisions and the skill of its management team.

Who Should Consider Investing:

GLDM may be suitable for investors who:

• Seek exposure to gold as an inflation hedge or portfolio diversifier.
• Are comfortable with the potential for volatility associated with gold prices.
• Believe in the active management approach and the expertise of the fund's management team.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, GLDM receives a fundamental rating of 7 out of 10. This rating is based on the fund's unique strategy, experienced management team, historical performance, and potential for portfolio diversification. However, investors should consider the risks associated with gold investments and the fund's expense ratio before making a decision.

Resources and Disclaimer:

This summary is based on information retrieved from:

• U.S. Commodity Funds website: https://www.uscffunds.com/
• ETF.com: https://www.etf.com/glgm
• Morningstar: https://www.morningstar.com/etfs/gldm/quote

Please note that this is not financial advice and should not be considered as a recommendation to invest in GLDM. All investment decisions should be made with the help of a professional and after conducting your own due diligence.