USCF has launched the USCF Aluminum Strategy Fund on the New York Stock Exchange. The actively managed fund seeks investment results that generally correspond over the long term to the price of aluminum.
ALUM uses a methodology that seeks to provide exposure to the price of the metal through aluminum-based derivatives investments. The fund will primarily invest in aluminum futures. ALUM may also invest in cash settled options, forward contracts, options on futures contracts, and other options.
The fund may invest in aluminum derivatives that are traded on U.S. and non-U.S. exchanges. Since ALUM is actively managed, it doesn’t seek to track any specific benchmark or index.
“Advisors are looking to broaden beyond traditional stocks and bonds using ETFs,” said Todd Rosenbluth, head of research at VettaFi. “It’s great to see new products offer more tools for diversification purposes.”
“Trading in aluminum futures has grown dramatically over the last year,” said John Love, president and CEO of USCF Investments. The CME reports nearly triple the number of open contracts and double the number of traders since last September.”
According to the issuer, this metal is a versatile metal used in many different products across different industries. ALUM’s managers believe demand is expected to continue to increase, especially as nations electrify their economies. Last year, Cru International reported that aluminum demand was expected to increase 40% by 2030.
“ALUM expands the number of USCF funds that provide opportunities for investors to participate in the growing demand for materials that increasingly [sic] important to the global economy,” added Love.