USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund

SDCI

Market cap $237M

SDCI has demonstrated robust performance, significantly outperforming its peers over the past year with a gain of over 20%, and has a high momentum rating. The fund's methodology selects 14 commodities each month from a universe of 27 by choosing those with the greatest backwardation (or least contango), essentially betting on a 'normalization.' The fund's primary advantage for retail investors is its structure, which allows it to issue a standard Form 1099 instead of the more complex K-1 form.

Market wildcards like tariffs and geopolitical tensions continue to keep investors cautiously optimistic. To help quell that market uncertainty, it's an opportune time to get commodities exposure via one strong-performing ETF: the USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund (SDCI).

The past few years have seen a notable acceleration in commodity price cycles. Research from the World Bank shows that since the onset of the COVID-19 pandemic, full commodity cycles have nearly halved in length — driven by global disruptions ranging from geopolitical conflicts to extreme weather events.

USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund ETF is an ETF that actively trades a rotating basket of commodity futures, relying entirely on the skill of its managers for returns. The fund's unpredictable and shifting commodity exposure makes it difficult for investors to form a clear view, or thesis, on its future performance. Despite its appeal as an uncorrelated asset, SDCI's historical returns are underwhelming compared to lower-risk alternatives like muni bonds or Treasury funds.

Commodity stocks have been a hot topic in recent months. Riding that wave, investors are increasingly revisiting commodity ETFs like the USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund (SDCI).

WALNUT CREEK, Calif. , Feb. 3, 2025 /PRNewswire/ -- USCF Investments, a leader in exchange traded fund (ETF) innovation, announced today that its USCF ETF Trust platform has grown to over $500 million in assets under management.

HSBC's chief economist Paul Bloxham described global commodity markets as being in a "super squeeze," primarily driven by supply constraints, as quoted on CNBC.

Commodities entered 2023 behind a strong performance in 2022. For investors revisiting their portfolios ahead of 2024, it may be worth assessing the commodities outlook.