The ZSC ETF is an actively managed ETF that spans several sustainability themes, including agriculture, renewable energy, and metals tied to batteries and electrification, and builds its commodity derivatives exposure according to its own selection criteria.

It suits investors who want diversified exposure to the price swings of sustainability-themed commodities without directly managing individual commodity futures contracts, and who can tolerate the possibility of losses.

The ETF is run with an active management approach by USCF Investments.

The product focuses on derivatives linked to agricultural commodities, renewable-energy-related commodities, and metals used in battery and electrification infrastructure that fit its sustainability themes. In managing the portfolio, it considers the environmental factors involved in commodity production and use, and it also uses carbon offset investments.

• Combines several sustainability-oriented commodity themes in a single product
• Exposure centered on commodity derivatives rather than physical equities

Assets under management (AUM) stand at $1.5M, and the total expense ratio is 0.59% per year.

Trading volume and bid-ask spreads can vary with market liquidity conditions, so it is worth checking the order type and the gap between the market price and the net asset value before trading.

The return pattern of the ZSC ETF is shaped by a range of factors, including crop yields, demand tied to the energy transition, industrial metal prices, and the maturity structure of futures. As a result, it can move in a different direction from a single-stock product, and performance dispersion can widen when price changes across themes diverge.

Commodity-related fund flows can react sensitively to inflation expectations, manufacturing and infrastructure investment conditions, renewable energy policy, and the dollar and interest rate environment. Because this product also factors in sustainability themes, it requires a separate look at its holdings and derivatives conditions when compared with a general commodity product.

Its hallmark is diversified commodity exposure with a sustainability lens, but investors should also examine the derivatives structure, price swings across themes, and market liquidity conditions.

The USLM and NYT holdings cited among the fund's positions are only clues for checking individual holdings and do not stand in for the commodity derivatives character of the product as a whole. Among the ETFs shown in the table, the EAOA ETF focuses on an asset allocation portfolio that applies sustainability criteria, while the EAOR ETF can be compared from a balanced asset allocation perspective. The EAOM ETF can serve as a reference for a conservative asset allocation profile, and the EAOK ETF for a defensive composition. The ZSB ETF concentrates on the battery metals theme, so it can be used to compare the scope of exposure with the ZSC ETF, which covers several commodity themes together.

Before investing, it is necessary to first understand what drives commodity price swings and how the derivatives structure works. Performance is not determined by the shared sustainability theme alone, so the distinct drivers of the agriculture, energy, and metals markets should be examined together.

Commodity futures and related derivatives can be affected by market prices, maturity structure, trading conditions, exchange rates, policy, and weather and geopolitical variables. Moves across themes may not occur at the same time, and the market price may diverge from the net asset value, so investors should set their tolerance for losses in advance.

The ZSC ETF can be considered by those who want to bundle commodity exposure reflecting sustainability themes into a single product. However, investors should first understand the derivatives risks that differ from general equity products, the heterogeneity of the agriculture, energy, and metals markets, and the variability of the once-a-year distribution, and then decide in line with their goals and holding period.