United States Commodity ETF files paperwork to be registered under Investment Company Act of 1940

United States Commodity ETF files paperwork to be registered under Investment Company Act of 1940

United States Commodity Funds, the Oakland, California-based firm that did so much to popularize futures-based exchange-traded funds focused on commodities, has filed regulatory paperwork describing a broad commodity fund that qualifies for the same tax treatment as a plain-vanilla equity or fixed-income fund.  

The USCF Dynamic Commodity Index Fund is being registered under the Investment Company Act of 1940, which means shareholders in the fund won’t have to file so-called K-1 forms typically required for futures-based investments. Instead, holders in the proposed ETF will file 1099 forms required for equities.

The United States Commodity Index Fund^® (“USCI”) is an exchange-traded security that is designed to track, in percentage terms, the price movements of the SummerHaven Dynamic Commodity Index Total Return℠. USCI issues shares that may be purchased and sold on the NYSE Arca.

The SummerHaven Dynamic Commodity Index Total Return℠ (SDCITR) is an index designed to reflect the performance of a portfolio of 14 commodity futures. The index is reformulated each month from 27 possible futures contracts.