United States Commodity Index Fund, LP
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsUnited States Commodity Index Funds Trust is a Delaware statutory trust whose commodity pools, USCI and CPER, issue exchange-traded shares on NYSE Arca to track specified commodity indexes.
What they do
The Trust operates two commodity pools: USCI, which tracks the SummerHaven Dynamic Commodity Index Total Return, and CPER, which tracks copper. Each pool invests primarily in benchmark commodity futures contracts traded on major exchanges (e.g., NYMEX, CBOT, CME, LME), and may use other commodity-related investments when regulatory or liquidity constraints apply. The Trust is managed by USCF, a registered commodity pool operator. Shares are bought and sold on NYSE Arca, with the aim that share price changes track per-share NAV changes.
Revenue drivers
- USCI commodity pool — Generates investment gains or losses from changes in the value of futures contracts and other commodity interests tied to the SDCI; primary driver of Trust results.
- CPER commodity pool — Tracks copper futures and other copper-related investments; smaller of the two series but contributes to overall Trust performance.
- Trading gains/losses on derivatives — Net realized and unrealized gains or losses from futures, options, and swaps underpin revenue; highly volatile based on commodity price swings.
Recent performance
As of the latest balance sheet data (2020-03-31), total assets were $129.0 million. Cash and equivalents stood at $574.6 million as of 2022-03-31. Annual results have been volatile: net income swung from $28.6 million in 2017 to -$74.9 million in 2018, -$8.1 million in 2019, -$18.1 million in 2020, and $75.3 million in 2021. The most recent quarterly revenue (2020-03-31) was -$54.7 million, reflecting the broad commodity market volatility in that period.
Strategy
The stated strategy is to track the SDCI daily returns, less expenses, by investing primarily in benchmark futures contracts. If constraints arise, USCI may shift to other futures on the same commodities or to economically similar instruments. The weighting of benchmark contracts changes monthly based on quantitative formulas developed by SHIM. The Trust relies on market arbitrage to keep share prices aligned with NAV, and its manager USCF adjusts investments to meet regulatory, liquidity, and market conditions.
Risks
- Commodity price volatility — Revenues are directly tied to volatile commodity futures prices, causing large swings in results, as seen in 2018 and 2020 losses.
- Tracking error — USCI may not achieve its objective of staying within +/-10% of the SDCI over rolling 30-day periods due to market conditions or investment constraints.
- Regulatory and liquidity constraints — FCMs, counterparties, or market conditions can force USCI to invest in less exact instruments or cash, deviating from the benchmark.
- Macroeconomic and geopolitical events — The Russia-Ukraine war and Middle East conflicts are cited as forward-looking risk factors that could affect operations and performance.
Outlook
Management avoids providing specific forecasts, but the forward-looking statements reference potential impacts from inflation, stock and currency movements, and commodity market volatility. The Trust continues to operate its two series, USCI and CPER, with the same investment objectives. No material changes to strategy or operations have been announced in recent 8-K filings, which are limited to Regulation FD disclosures.