USCF Announces Launch of the USCF Gold Strategy Plus Income Fund (Ticker: GLDX)

Rhea-AI Summary

USCF has launched the USCF Gold Strategy Plus Income Fund (GLDX), in partnership with SummerHaven Investment Management. This actively managed ETF aims to provide long-term investment performance aligned with gold prices while generating income through selling gold call options and collateral interest. GLDX is designed to enhance gold exposure with an income objective, offering investors a viable inflation-hedging strategy.

With a history of successful commodity ETPs, USCF currently manages approximately $4.5 billion in assets from Walnut Creek, California.

Positive

• Launch of USCF Gold Strategy Plus Income Fund (GLDX) enhances gold exposure with income generation.
• Collaboration with a reputable partner, SummerHaven Investment Management, recognized for innovative investment solutions.
• USCF has a history of successfully managing commodity ETPs, indicating expertise in the sector.

Negative

• GLDX is a new fund with no operating history, presenting inherent investment risks.
• Investors may face significant volatility due to the speculative nature of commodity trading.

WALNUT CREEK, Calif., Nov. 3, 2021 /PRNewswire/ -- USCF today announced it has launched the USCF Gold Strategy Plus Income Fund (GLDX) with SummerHaven Investment Management, LLC (SummerHaven), a Stamford based investment management firm, as sub-adviser. GLDX seeks investment results that generally correspond over the long term to the performance of the price of gold, while generating dividend income through selling gold call options and through collateral interest income. GLDX is an actively managed exchange traded fund (ETF).

"GLDX attempts to add income to gold exposure"

SummerHaven and USCF previously collaborated on three exchange traded products: the United States Copper Index Fund (NYSE Arca: CPER), United States Commodity Index Fund (NYSE Arca: USCI) and the USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund (NYSE Arca: SDCI) respectively.

"Physical gold is a portfolio staple that has long provided inflation protection, diversification, and stability in volatile markets. However, gold doesn't earn income on its own. GLDX attempts to add income to gold exposure," said John Love, President and CEO of USCF. "The ability to combine an income objective with exposure to the gold markets makes makes SummerHaven's Gold Plus Income strategy a dynamic addition to our long standing partnership."

"Covered call and 'buy write' strategies have been used by equity investors for decades seeking to generate income, and we're excited to collaborate with USCF and bring this innovative gold strategy to ETF investors. USCF has launched several market-leading commodity ETPs since 2006, and now gold is part of their diversified ETP platform," said Kurt Nelson, President of SummerHaven Investment Management. "GLDX offers an inflation hedging strategy for investors seeking exposure to the gold markets along with income."

About USCF

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 nine more ETPs and ETFS 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 approximately $4.5 billion in assets from their headquarters in Walnut Creek, California.

About SummerHaven Investment Management, LLC

Headquartered in Stamford, CT, SummerHaven Investment Management is an alternatives asset management firm focused on designing innovative investment solutions based upon academic and SummerHaven research insights. For more information please visit www.summerhavenim.com.

Forward Looking Statements

Statements other than statements of historical facts included in this press release may constitute forward looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

USCF is a registered trademark. All rights reserved.

John P. Love is a registered representative of ALPS Distributors, Inc.

Definitions:
Covered Call - a financial transaction in which the investor selling call options owns an equivalent amount of the underlying security. To execute this, an investor who holds a long postion in an asset then writes (sells) call options on that same asset to generate an income stream. The investor's long position in the asset is the cover because it means the seller can deliver the shares if the buyer of the call option chooses to exercise.

Buy-Write - an options trading strategy where an investor buys a security, usually a stock, with options available on it and simultaneously writes (sells) a call option on that security. The purpose is to generate income from option premiums. Because the option position only decreases in value if the price of the underlying security increases, the downside risk of writing the option is minimized.

Commodity Fund Disclosures:
Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund's respective shares. Funds that focus on a single sector generally experience greater volatility. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

An investor should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus containing this and other information, please call 1-800-920-0259 or download the file from www.uscfinvestments.com.

GLDX is new and has no operating history. 

Diversification does not eliminate the risk of experiencing investment losses. An investment in the fund involves risk, including loss of principle. ALPS Distributors, Inc. is unaffiliated with USCF Advisers and SummerHaven Investments. Funds distributed by ALPS Distributors, Inc.

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SOURCE USCF Investments

FAQ

What is the USCF Gold Strategy Plus Income Fund (GLDX)?

The GLDX is an actively managed ETF launched by USCF that aims to provide long-term investment results corresponding to gold prices while generating income through options.

How does GLDX generate income for investors?

GLDX generates income by selling gold call options and through collateral interest income.

What are the investment strategies employed by GLDX?

GLDX employs covered call and buy-write strategies to generate income while providing exposure to gold markets.

What are some funds previously launched by USCF and SummerHaven?

USCF and SummerHaven previously launched the United States Copper Index Fund (CPER), United States Commodity Index Fund (USCI), and the USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund (SDCI).

What risks are associated with the GLDX investment?

Investing in GLDX carries risks due to its speculative nature and lack of operating history, which may lead to significant fluctuations in share price.