United States Commodity Funds Investment Guide

If you're new to investing in commodity funds, it's essential to understand the basics. Commodity funds are investment vehicles that allow you to diversify your portfolio by investing in a variety of commodities, such as gold, oil, and agricultural products.

Commodity funds are typically managed by professional investment managers who use a range of strategies to try to maximize returns. They often track a specific index, such as the S&P GSCI, which provides a benchmark for commodity performance.

You can invest in commodity funds through a brokerage account or a retirement account, such as an IRA or 401(k). This allows you to take advantage of tax benefits and potentially lower fees.

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USCI is a type of investment fund that aims to track the changes in a specific index, which is comprised of 14 futures contracts selected from a list of 27 possible futures contracts.

The fund's investment objective is to have the daily changes in its net asset value (NAV) reflect the daily changes in the index, minus the fund's expenses.

The index is made up of Benchmark Component Futures Contracts, which are selected on a monthly basis.

United States Commodity Funds LLC was founded in 2005 in Alameda, CA. This marked the beginning of the company's journey in the exchange traded commodity products (ETPs) space.

The company's first fund, United States Oil Fund, LP (USO), was launched in 2006, making it the first commodity ETF based on crude oil launched in the United States.

USO was the fourth commodity ETP launched in the United States, following the SPDR Gold Shares Trust (GLD), the iShares COMEX Gold Trust (IAU), and the Powershares DB Commodity Index Fund (DBC).

USCF's first natural gas based ETP, United States Natural Gas Fund, LP (UNG), was launched in 2007 and is currently the largest and most actively traded natural gas commodity ETP in the United States.

In 2008, USCF launched two new funds: United States Gasoline Fund, LP (UGA), the first gasoline based commodity ETP, and the United States Heating Oil Fund, LP, the first heating oil based commodity ETP.

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USCF's commodity exchange traded products are all listed on the New York Stock Exchange (NYSE), which is a significant milestone for the company.

The company's portfolio has expanded over the years, with the launch of new funds that track various commodities, including Brent crude oil, through the United States Brent Oil Fund, LP (BNO), launched in 2010.

USCF's diversification efforts led to the launch of the United States Commodity Index Fund (USCI) in 2010, which holds a diversified basket of commodity futures based on the SummerHaven Dynamic Commodity Index (SDCI).

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USCF Investments offers a range of investment options through its commodity funds. You can invest in single commodity funds, such as the United States Oil Fund, LP (ticker: USO), which tracks the price of West Texas Intermediate (WTI) crude oil.

The USCF funds also include an index-based fund, the United States Commodity Index Fund (ticker: USCI), which tracks a basket of commodities. This fund has an expense ratio of 1.01% and a correlation coefficient of 1.00 with itself over the past year.

You can diversify your portfolio by investing in multiple funds with low to moderate correlation, such as the United States Natural Gas Fund, LP (ticker: UNG) and the United States 12 Month Oil Fund, LP (ticker: USL).

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The USCI ETF is a fund that tracks the price of commodities, giving investors a way to diversify their portfolios and potentially reduce risk. The ETF has an expense ratio of 1.01%.

One of the benefits of using the USCI ETF is that it can be compared to other ETFs that track similar commodities, such as the FTGC and CMDT ETFs. These ETFs have correlation coefficients of 0.91, indicating that their prices tend to move together.

If you're looking to build a diversified portfolio, you may want to consider using a combination of ETFs that have low correlation coefficients, such as the USCI, FTGC, and CMDT ETFs. This can help minimize portfolio risk and potentially increase returns.

Here are some key statistics for the USCI ETF:

When investing in commodities, it's essential to consider various funds that cater to different needs and goals.

USCF offers a range of single commodity funds, including the United States Oil Fund (USO) and the United States Natural Gas Fund (UNG), each tracking a specific energy-related commodity.

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Investors can also opt for index-based funds, such as the USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund, which has delivered a 1-year performance of 21.68%.

For those seeking a broader exposure to commodities, the USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund and the Simplify Commodities Strategy No K-1 ETF are worth considering.

Here's a comparison of some popular funds in the commodities category:

If you're looking to invest in commodity-based funds, USCF Investments is a great place to start. They offer a range of funds, including eight single commodity funds, each based on an energy-related commodity.

The USCF funds include the United States Oil Fund, LP (ticker: USO), the United States Natural Gas Fund, LP (ticker: UNG), and the United States 12 Month Oil Fund, LP (ticker: USL), among others. These funds allow you to diversify your portfolio and invest in various commodities.

Here's a list of the USCF funds, including their tickers:

Keep in mind that these funds have different performance levels, as shown in the funds category comparison table below: