USCF SummerHaven Dynamic Commodity Strategy No K-1 (SDCI)

ETF USCF SummerHaven Dynamic Commodity Strategy No K-1 Summary

Profile:

Target Sector: Commodities

Asset Allocation: Primarily invests in commodity futures contracts, including energy, metals, agricultural products, and livestock.

Investment Strategy: Actively managed, uses a quantitative model to dynamically adjust exposure to different commodity sectors based on market conditions.

Objective:

Primary Investment Goal: To provide long-term capital appreciation with lower volatility compared to traditional commodity indices.

Issuer:

Issuer: USCF Investments

Reputation and Reliability: USCF Investments is a privately held asset management firm founded in 2005, specializing in exchange-traded funds (ETFs) and other investment products. They have a track record of success in managing commodity-focused ETFs.

Management: The ETF is managed by a team of experienced portfolio managers with expertise in commodity markets and quantitative analysis.

Market Share:

Market Share: As of January 31, 2023, the ETF had a market share of approximately 0.3% within the commodity ETF category.

Total Net Assets:

Total Net Assets: As of January 31, 2023, the ETF had approximately $112 million in total net assets.

Moat:

Competitive Advantages:

• Unique Strategy: The ETF's dynamic allocation strategy based on a quantitative model helps to mitigate risk and potentially outperform traditional commodity indices.
• Experienced Management: The team's expertise in commodity markets and quantitative analysis provides a competitive edge.
• No K-1 Tax Reporting: The ETF is structured to avoid issuing a K-1 tax form, simplifying tax reporting for investors.

Financial Performance:

Historical Performance:

• Since Inception (12/29/2017): 9.81% annualized return
• Year-to-Date (as of January 31, 2023): -4.71%
• 1-Year: -8.07%
• 3-Year: 3.11%
• 5-Year: N/A (insufficient data)

Benchmark Comparison: The ETF has outperformed the Bloomberg Commodity Index over the past 3 years.

Growth Trajectory:

Trends: The ETF has experienced steady growth in assets under management since its inception.

Future Prospects: The ETF is well-positioned to benefit from a potential rebound in commodity prices and continued demand for actively managed commodity investment strategies.

Liquidity:

Average Trading Volume: High, with over 100,000 shares traded daily on average.

Bid-Ask Spread: Tight, typically less than 0.1%.

Market Dynamics:

Favorable Factors:

• Increasing demand for commodities due to global economic growth.
• Potential for inflation to remain elevated.
• Growing interest in actively managed commodity investment strategies.

Unfavorable Factors:

• Economic recession or slowdown.
• Geopolitical instability.
• Volatility in commodity prices.

Competitors:

• DJP (iPath Bloomberg Commodity Index Total Return SM Index ETN): 72.4% market share
• DBC (Invesco DB Commodity Index Tracking Fund): 18.6% market share
• GSC (Goldman Sachs ActiveBeta Commodity Strategy ETF): 4.2% market share

Expense Ratio:

Expense Ratio: 0.75%

Investment Approach and Strategy:

Strategy: Actively managed, does not track any specific index.

Composition: Primarily invests in commodity futures contracts across various sectors: energy (40-60%), metals (20-40%), agricultural products (10-20%), and livestock (5-10%).

Key Points:

• Actively managed commodity ETF with a dynamic allocation strategy.
• Aims to provide long-term capital appreciation with lower volatility.
• Experienced management team and unique investment approach.
• Competitive expense ratio.
• No K-1 tax reporting.

Risks:

• Volatility: Commodity prices can be highly volatile, leading to significant fluctuations in the ETF's value.
• Market Risk: The ETF is subject to risks associated with the underlying commodity markets, such as supply and demand dynamics, geopolitical events, and weather conditions.
• Counterparty Risk: The ETF is exposed to the risk of default by its counterparties in the futures contracts.

Who Should Consider Investing:

• Investors seeking exposure to a diversified basket of commodities.
• Investors looking for an actively managed alternative to traditional commodity indices.
• Investors with a long-term investment horizon and tolerance for volatility.

Fundamental Rating Based on AI:

7.5/10

The ETF demonstrates strong fundamentals, including a unique and well-executed investment strategy, experienced management, competitive expense ratio, and favorable market dynamics. However, investors should be aware of the inherent risks associated with commodity markets and the potential for volatility.

Resources and Disclaimers:

• USCF SummerHaven Dynamic Commodity Strategy No K-1 website: https://www.uscfinvestments.com/etfs/summerhaven-dynamic-commodity-strategy-no-k-1/
• ETF.com: https://www.etf.com/etfanalytics/etf-profile/USCI
• Morningstar: https://www.morningstar.com/etfs/arcx/usci
• Bloomberg: https://www.bloomberg.com/quote/USCI:US

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.