Index management firms USCF Investments and SummerHaven Index Management LLC said that they have launched the SummerHaven Dynamic Commodity Strategy No K-1 Fund ( SDCI ), an actively managed exchange traded fund that will use the SummerHaven Dynamic Commodity Index as its benchmark.
This is the same benchmark utilized by the firms' first collaboration, the United States Commodity Index Fund ( USCI ).
SDCI, which seeks long-term total return, is the fourth collaboration between the two firms. The other exchange traded products that they have developed include the United States Copper Index Fund ( CPER ), the United States Agriculture Index Fund ( USAG ), and the United States Commodity Index Fund ( USCI ), which also uses the SummerHaven Dynamic Commodity Index as a benchmark, as well as a mutual fund, the USCF Commodity Strategy Fund.
The SummerHaven Dynamic Commodity Index is a total return commodity sector index designed to broadly represent major commodities. It shows the performance of a fully collateralized portfolio of 14 commodity futures, selected each month from 27 eligible contracts. The index rebalances to equal weights on a monthly basis and features a diversification rule that allows it to maintain broad exposure to all commodity sectors -- unlike most commodity indexes.
John Love, President and CEO of USCF, stated: "SDCI has been a major component of our plan to offer investors truly diversified access to the commodity space. The SummerHaven Dynamic Commodity Index ushered in a new generation in commodity indexing. Rather than making incremental changes to established benchmarks, the index was built from the ground up in 2009 placing the needs and goals of investors first. Investors have frequently asked for an investment vehicle that is guided by the SummerHaven Dynamic Commodity Index but that does not issue a K-1 tax form, and the ETF structure of SDCI enables us to do that."
USCF operates on the leading edge of exchange-traded product ( ETP ) and exchange-traded fund (ETF) innovation. The firm broke new ground with the launch of the first oil ETP, the United States Oil Fund, LP (USO), in 2006. Over the next decade, USCF designed and issued fifteen more ETPs and ETFS, as well as a mutual fund, across commodity and equity asset classes. USCF Advisors, LLC, an affiliate of USCF, serves as the investment adviser to the Fund. USCF and its affiliates currently manage over $3 billion in assets from its headquarters in Oakland, California.
SummerHaven Index Management, LLC creates innovative commodity indexes focused on seeking to provide investors with better risk-adjusted returns than traditional commodity indexes. The firm is the owner, creator, and licensor of the SummerHaven Dynamic Commodity Index, the SummerHaven Dynamic Agriculture Index (SDAI), the SummerHaven Dynamic Metal Index (SDMI), and the SummerHaven Copper Index (SCI). The firm is led by a seasoned management team with over 100 years of collective experience in commodity futures, academics, investment management, and exchange traded products. For more information, please visit www.summerhavenindex.com.
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