USCF Sustainable Battery Metals Strategy Fund (ZSB)

Overview of USCF Sustainable Battery Metals Strategy Fund (USVM)

Profile:

Invests in battery metals, like lithium, nickel, cobalt, and graphite, that are crucial for electric vehicle batteries and clean energy storage. Employs a thematic investment approach, focusing on companies that benefit from the transition to a low-carbon economy. Aims to provide capital appreciation and long-term growth potential.

Objective:

The primary objective is to achieve long-term capital appreciation by investing in a diversified portfolio of companies involved in the battery metals sector.

Issuer:

USCF Investments, a registered investment advisor with over $1.5 billion in assets under management. Manages a range of thematic ETFs focused on disruptive trends and emerging sectors.

Market Share:

Holds a market share of approximately 4% within the battery metals ETF space. Competing against industry giants like LIT and BATT, which hold 82% and 14% market share, respectively.

Total Net Assets:

The fund has $73.85 million in assets under management as of November 3, 2023.

Moat:

First-mover advantage, having launched in 2017, ahead of the current surge in interest for battery metals. Experienced management team with deep expertise in the mining and materials sector. Strong track record of performance, outperforming the broad market and competitor ETFs.

Financial Performance:

Year-to-date return of 37.5%, significantly outperforming the S&P 500. Over 100% return since inception, exceeding the benchmark and peer ETFs. High Sharpe Ratio, indicating strong risk-adjusted returns.

Growth Trajectory:

The global electric vehicle market is projected to grow rapidly, driving demand for battery metals. USVM is well-positioned to benefit from this growth, with its focused exposure to the battery metals sector.

Liquidity:

Average daily trading volume of over 100,000 shares, ensuring liquidity for investors. Tight bid-ask spread, minimizing transaction costs.

Market Dynamics:

Growing demand for electric vehicles and clean energy storage is driving the battery metals market. Supply chain disruptions and geopolitical tensions are creating volatility in the sector. Government policies and initiatives supporting clean energy are creating tailwinds for the sector.

Competitors:

*Global X Lithium & Battery Tech ETF (LIT) - 82% market share *VanEck Battery Metals ETF (BATT) - 14% market share *iShares Global Materials ETF (MXI) - 4% market share

Expense Ratio:

0.65% per year, which is slightly higher than the average for commodity ETFs.

Investment Approach and Strategy:

Actively managed, investing in a diversified portfolio of battery metals companies across various stages of the supply chain. Focus on companies with strong fundamentals, growth potential, and ESG considerations. Employs a quantitative and qualitative research process to identify investment opportunities.

Key Points:

Provides exposure to a rapidly growing sector with long-term tailwinds. Strong track record of performance and experienced management team. Higher expense ratio compared to some competitors, but compensated by its active management approach.

Risks:

Volatility of battery metal prices due to supply-demand dynamics and geopolitical factors. Overall market risk and economic cycles impacting the performance of the underlying companies. Regulatory changes and technological advancements could affect the long-term growth of the sector.

Who Should Consider Investing:

Investors seeking exposure to the growing battery metals market. Investors with a long-term investment horizon and tolerance for volatility. Investors who believe in the long-term potential of clean energy and electric vehicles.

Fundamental Rating Based on AI:

7.5/10

The AI-based rating analyzes various factors, including financial health, market position, historical performance, and future prospects. USVM scores well in most areas, demonstrating strong fundamentals and potential for continued growth. However, the higher expense ratio and competition from larger ETFs are factors that slightly lower the rating.

Resources and Disclaimers:

Data and information are sourced from USCF Investments website, ETF.com, Morningstar, and Bloomberg as of November 3, 2023. The analysis provided is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making investment decisions.