In Depth: The Five Minute Guide To The United States Commodity Index (USCI)
Many investors looking to add broad-based commodity exposure to their portfolios, ranging from individuals to billion dollar hedge funds, have turned to ETFs as the most efficient vehicle for doing so. While the most popular products are generally those that have the longest operating history, more and more investors are turning to new instruments that are popping up as viable tools for establishing exposure to this potentially promising–and risky–corner of the market [see 10 Commandments Of Commodity Investing]. One of the more innovative “third generation” commodity ETFs to debut in recent years is the United States Commodity Index Fund (USCI). This one-of-a-kind product is the result of a collaboration between United States Commodity Funds, the firm behind the ultra-popular UNG and USO, and Summerhaven.
Commodity ETF Spotlight: USCI In Focus
Many investors looking to add broad-based commodity exposure to their portfolios, ranging from individuals to billion dollar hedge funds, have turned to ETFs as the most efficient vehicle for doing so. While the most popular products are generally those that have the longest operating history, more and more investors are turning to new products that are popping up as a tool for establishing exposure to this potentially promising–and risky–asset class. One of the more innovative commodity ETFs to debut in recent years is the United States Commodity Index Fund (USCI), which is the result of a collaboration between United States Commodity Funds, the firm behind the ultra-popular UNG and USO, and Summerhaven.