USCF Sustainable Commodity Strategy Fund (ZSC)

Overview

The fund advisor operates with a keen focus on sustainability, leveraging commodities as a cornerstone to bolster investments that are rooted in agriculture, renewable energy, and electrification. This approach is designed to provide investors with broad exposure to sectors that are not only vital for the future's economy but are also aligned with sustainable practices. Understanding the importance and the impact of such sectors, the fund strategically positions itself to capitalize on these areas, aiming to generate returns while contributing to a sustainable future. The investment strategy involves a heavy reliance on derivatives and equity securities that are closely linked to the performance of the commodities relevant to the three sustainability themes. By maintaining an equal weight across these themes, the fund ensures a balanced exposure, reflecting its commitment to each sector's potential while acknowledging the diversified risks associated with commodities and their markets. The distinct approach of not diversifying beyond the chosen themes allows for a concentrated investment strategy, potentially enhancing the impact and returns from each sector.

Products and Services

• Derivatives Exposure in Commodities

This product focuses on providing investors with access to the commodities market through derivatives. These financial instruments are chosen such that their value is derived from the performance of underlying commodities across agriculture, renewable energy, and electrification. By investing in derivatives, the fund aims to gain exposure to commodities price movements without the need for physical holdings, offering a streamlined and potentially less capital-intensive way to participate in these markets.

• Equity Securities Tied to Commodities

Alongside derivatives, the fund invests in equity securities that have a direct economic link to the commodities related to its sustainability themes. This includes companies involved in the production, distribution, and innovation within the agriculture, renewable energy, and electrification sectors. This method allows the fund to capture growth in these areas through the stock market, benefiting from the business performance of leading and emerging companies committed to sustainability.

• Theme-Based Investment Allocation

The fund's investment strategy is distinctly structured around three sustainability-focused themes: agriculture, renewable energy, and electrification. Each theme is given approximately equal weight in the fund's portfolio to ensure a balanced exposure across sectors deemed critical for sustainable development. This equal weighting strategy aims to diversify investment risk while maximizing the potential for impact and returns from each sector.