The issuer of the SDCI ETF, USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund, is focused on providing investors with exposure to the commodities markets. The ETF aims to maintain substantial economic exposure to commodity performance, primarily through its wholly-owned subsidiary, USCF Cayman Commodity 2. The Subsidiary, with the same investment objective as the ETF, is advised by the issuer and sub-advised by SummerHaven Investment Management, LLC (SummerHaven). The SDCI ETF seeks to correspond to the SummerHaven Dynamic Commodity Index Total Return (SDCITR), owned and maintained by SummerHaven Index Management, LLC (SHIM), an affiliate of SummerHaven. Unlike an index fund, the SDCI ETF is actively managed and designed to represent major commodities through a fully margined and collateralized portfolio of commodities futures contracts. The SDCITR is composed of 14 equally weighted Component Futures Contracts, reconstituted and rebalanced monthly. The issuer achieves this exposure by investing in a portfolio of futures contracts and commodity-related derivative instruments, such as options on futures contracts, forward contracts, and cash-settled options, all managed actively by the issuer. The Subsidiary plays a crucial role in providing exposure to the commodities markets while complying with U.S. federal income taxation requirements applicable to investment companies.
While the primary objective of the USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund (SDCI) is to track the performance of commodities markets, it doesn't focus on traditional dividend distributions. The fund primarily achieves exposure to commodities markets through investments in its wholly-owned subsidiary, USCF Cayman Commodity 2. The performance of SDCI reflects the SummerHaven Dynamic Commodity Index Total ReturnSM (SDCITR), which is actively managed and consists of 14 equally-weighted futures contracts. Since SDCI is not designed for income generation, investors should primarily consider it for commodity market exposure and potential capital appreciation.
The SDCI ETF, also known as the SummerHaven Dynamic Commodity Index Total Return ETF, aims to provide substantial economic exposure to the commodities markets. The ETF achieves this by primarily investing in a portfolio of commodities futures contracts through its wholly-owned subsidiary, USCF Cayman Commodity 2. Managed actively, the ETF seeks to closely mirror the performance of the SummerHaven Dynamic Commodity Index Total ReturnSM (SDCITR), a total return commodity sector index representing major commodities. It accomplishes this by investing in a diverse range of futures contracts, ensuring it captures the dynamic nature of the commodities markets.
The correlation aspect of the USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund (SDCI) plays a pivotal role in understanding its performance in relation to the commodities markets. As an ETF seeking exposure to the SummerHaven Dynamic Commodity Index Total ReturnSM (SDCITR), SDCI's correlation with the index is expected to be strong. This correlation helps investors gauge the fund's effectiveness in tracking major commodities and making informed investment decisions. To delve deeper into SDCI's correlations and explore its overlaps with other assets, you can utilize ETF Insider's web app for comprehensive data visualization and analysis.
The SDCI Sector is primarily focused on commodities markets, seeking substantial economic exposure through its wholly-owned subsidiary, USCF Cayman Commodity 2. The SDCI Sector aims to correspond to the SummerHaven Dynamic Commodity Index Total ReturnSM (SDCITR), reflecting major commodities' performance. This actively managed sector comprises 14 equally-weighted component futures contracts, reconstituted and rebalanced monthly, emphasizing commodities with low inventories to potentially capitalize on price movements when supply is low. While the SDCI Sector offers investors exposure to the commodities markets, it operates as a non-diversified fund and may invest directly or indirectly in commodity-related derivative instruments, enhancing its flexibility in pursuing desired economic exposure.
The exposure characteristic of the SDCI ETF (SDCI) is centered on providing substantial economic exposure to the commodities markets. Through its wholly-owned subsidiary, USCF Cayman Commodity 2, the fund gains access to the commodities markets. It aims to mirror the SummerHaven Dynamic Commodity Index Total Return (SDCITR), which represents major commodities and is reconstituted and rebalanced monthly. The SDCI ETF primarily invests in fully margined and collateralized portfolios of commodities futures contracts, and it may also use commodity-related derivative instruments to achieve its desired exposure. For in-depth analysis and insights into SDCI's exposure and potential correlations with other assets, investors can leverage the ETF Insider web app, which offers comprehensive data visualization and analysis tools.
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