USCF Advisers has launched the USCF Energy Commodity Strategy Absolute Return Fund (NYSE Arca: USE), an actively managed exchange traded fund that seeks long-term total return by investing in energy-related derivative instruments based upon oil, petroleum, natural gas, and other energy-related derivative instruments.
According to the issuer, USE will invest in futures contracts including (but not limited to) WTI crude oil, Henry Hub natural gas, NY Harbor ultra-low sulfur diesel (formerly heating oil), RBOB gasoline, Brent crude oil, and gasoil. As part of its investment strategy, the fund may also invest in other types of futures contracts, including futures based on “clean energy” sources, such as wind and solar power.
USE provides long, short, or spread exposure to the energy sector through a quantitative methodology. The fund can potentially earn returns not correlated with stocks and bonds. It can also offer additional return potential from yields on collateral investments, such as U.S. Treasuries.
See more: “USCF Launches Sustainable Battery Metals Strategy Fund”
“After 17 years of managing commodity ETFs, we are excited to launch a fund that uses that experience,” said John Love, president and CEO of USCF, in a news release. “USE provides long, short, or spread exposure to the energy sector using our proprietary quantitative methodology.”
The fund has a total expense ratio of 0.79%.
The launch of USE follows USCF in January listing the USCF Sustainable Battery Metals Strategy Fund (ZSB), which seeks total return by investing primarily in metals derivative instruments and, to a lesser extent, the equity securities of companies that are economically tied to the metals that are necessary for the process known as “electrification.”
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