USCF launches absolute return ETF on energy commodities

May 9th, 2023 | By | Category: Commodities

United States Commodity Funds (USCF) has launched a new actively managed ETF that seeks positive returns in all market environments by going long and short across energy commodities.

John Love, President and CEO of USCF

John Love, President and CEO of USCF.

The USCF Energy Commodity Strategy Absolute Return Fund (USE US) has been listed on NYSE Arca with an expense ratio of 0.79%.

The ETF will invest in futures contracts on WTI crude oil, Henry Hub natural gas, NY Harbor ultra-low sulfur diesel (formerly heating oil), RBOB gasoline, Brent crude oil, and gasoil.

The fund may also invest to a lesser degree in futures contracts based on “clean energy” sources such as wind and solar power.

The ETF may enact long, short, or spread positions on the underlying commodities with the nature of the exposure determined by a proprietary quantitative methodology. According to USCF, its model harnesses technical signals on price and volume, fundamental signals on specific energy commodities, and general economic signals.

John Love, President and CEO of USCF, said: “After 17 years of managing commodity ETFs, we are excited to launch a fund that uses that experience. USE provides long, short, or spread exposure to the energy sector using our proprietary quantitative methodology.”

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