The USE ETF pursues long-term total return by investing in energy-related futures contracts such as crude oil, petroleum products, and natural gas, and by adjusting the allocation among those contracts. Not only the direction of individual energy prices but also the structure of the futures market can affect results.

It is suited to investors who can tolerate the volatility of energy commodities and who understand an actively managed approach that uses several related contracts rather than a single product.

It is an ETF managed by USCF using an active management approach.

USCF holds different energy contracts in the portfolio, such as crude oil, refined fuels, and natural gas, and adjusts the allocation of capital using its own methodology. Unlike commodity products with exposure to a single item, this approach reflects both the price trends of each contract and the structure of the futures market.

• An active allocation approach that uses several energy contracts together
• A strategy that considers the structure of the futures market as well as price direction

Assets under management (AUM) stand at $3.0M, and the total expense ratio is 0.79% per year.

Because this product has a structure of active contract allocation, it is important to read its management objective, the range of futures contracts, and trading conditions together, rather than looking only at the headline fee level or the product name.

The performance of energy-related futures contracts is affected by a variety of factors, including crude oil and natural gas supply and demand, inventory trends, conditions in the refining sector, and geopolitical variables. The returns of the USE ETF may fluctuate not only with price changes in individual commodities but also with the futures market structure at the time contracts are rolled and with active allocation decisions.

Fund flows into commodity products can vary with the inflation path, the economic activity outlook, the currency environment, and energy supply conditions. Because the USE ETF uses several related contracts rather than concentrating on a single energy item, investors need to look not only at market direction but also at whether the environment is one in which the management strategy can work.

Strategic flexibility from using several energy contracts is a strength, but large volatility in futures markets and commodity prices can lead to the risk of losses.

The DBE ETF, the comparison product in the table, is an example worth checking alongside when reviewing the energy commodity category. When comparing the DBE ETF with the USE ETF, investors should check each product's objective, contract composition method, management style, fee burden, and trading conditions in its product documents. The characteristics of the DBE ETF and the active allocation strategy of the USE ETF do not guarantee identical results, and because information on similar products is limited, the latest disclosures of each product should take priority.

Before investing, you should first check whether the purpose of investing in energy commodities fits your asset allocation plan, whether you understand the structure that uses futures contracts, and whether you can tolerate the volatility. The top holdings listed in the input metadata include the USLM ETF and the NYT ETF, and because the NYT ETF entry is repeated, the latest public information on the NYT ETF should also be reviewed.

Commodity and futures contract prices can swing widely, and the contract roll process and market liquidity conditions can affect actual investment results. Changes in energy supply and demand, weather, policy shifts, geopolitical variables, and the currency environment can act at the same time, so the possibility of short-term losses should be taken into account.

The USE ETF is an active strategy that uses energy-related derivatives to cover a broader group of contracts than a single commodity. Rather than judging based on a view of the energy market alone, it is advisable to review the futures market structure, management approach, distribution policy, and trading conditions together, and to confirm that the fund fits your risk tolerance and investment horizon.