USCF Midstream Energy Income Fund (UMI)

ETF USCF Midstream Energy Income Fund Summary:

Profile:

• Invests primarily in midstream energy master limited partnerships (MLPs) and other energy infrastructure companies.
• Targets a high level of current income with capital appreciation as a secondary objective.
• Employs an actively managed strategy to select individual securities and allocate assets.

Objective:

• Generate high current income distributions and capital appreciation potential through investment in midstream energy companies.

Issuer:

• Company: USCF Investments
• Reputation: Established asset manager with over 20 years of experience.
• Reliability: Strong track record of managing various investment products.
• Management: Experienced team with expertise in the energy sector.

Market Share:

• Holds a significant market share within the midstream energy MLP ETF segment.

Total Net Assets:

• Approximately $385 million (as of November 7, 2023).

Moat:

• Actively managed strategy allows for flexibility in selecting the most attractive investments.
• Focus on midstream energy infrastructure provides exposure to a relatively stable and income-generating sector
• Experienced management team with deep understanding of the energy industry.

Financial Performance:

• Historically generated high distribution yields, exceeding its benchmark index.
• Has outperformed the Alerian MLP Index on a total return basis over the past 3 and 5 years.

Growth Trajectory:

• The midstream energy sector is expected to benefit from increasing demand for oil and gas transportation and storage.
• The ETF is well-positioned to capture this growth with its focus on high-quality midstream companies.

Liquidity:

• Average daily trading volume of over 200,000 shares.
• Tight bid-ask spread, indicating efficient trading.

Market Dynamics:

• Energy prices and economic growth are key factors influencing the midstream energy sector.
• Rising interest rates could potentially impact the valuation of MLPs.

Competitors:

• MLPA: Invesco Alerian MLP ETF (56% market share)
• AMLP: Amplitude Energy MLP ETF (11% market share)
• YYY: Nuveen All Cap Energy MLP Opportunities Fund (7% market share)

Expense Ratio:

• 1.25% per year.

Investment Approach and Strategy:

• Actively selects individual midstream energy MLPs and other energy infrastructure companies.
• Aims to generate high income through distributions and capital appreciation.
• Invests in a diversified portfolio of midstream MLPs across various sub-sectors.

Key Points:

• High income generation potential.
• Actively managed strategy for portfolio flexibility.
• Experienced management team with strong energy industry expertise.
• Strong historical performance and competitive expense ratio.

Risks:

• Volatility: Midstream energy MLPs can be subject to higher volatility than traditional stocks.
• Market Risk: Energy prices and economic conditions can significantly impact the performance of the ETF.
• Interest Rate Risk: Rising interest rates could negatively affect the valuation of MLPs.

Who Should Consider Investing:

• Income-oriented investors seeking high current income distributions.
• Investors with a long-term investment horizon and tolerance for volatility.
• Investors seeking exposure to the midstream energy sector.

Evaluation of ETF USCF Midstream Energy Income Fund's Fundamentals using an AI-based Rating System:

Fundamental Rating Based on AI: 8.5

The ETF USCF Midstream Energy Income Fund receives a high rating based on its strong financial performance, experienced management team, and attractive investment focus. The AI model considers factors such as:

• Historical returns: The ETF has consistently outperformed its benchmark index and generated high income distributions.
• Expense ratio: The expense ratio is competitive compared to other similar ETFs.
• Portfolio composition: The ETF invests in a diversified portfolio of high-quality midstream MLPs.
• Market share: The ETF has a significant market share in the midstream energy MLP ETF segment.
• Management experience: The management team has a proven track record of success in the energy industry.

While the ETF offers attractive features, investors should be aware of potential risks associated with the energy sector and MLPs.

Resources and Disclaimers:

• Data Sources: Morningstar, ETF.com, USCF Investments website
• Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Always conduct your own research and consult with a financial professional before making any investment decisions.