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.
