USCF, a provider of ETFs and exchanged traded products based in Walnut Creek, Calif., is expanding its offering of ETFs with the creation of an actively managed gold ETF, the firm announced Wednesday.
The USCF Gold Strategy Plus Income Fund (GLDX) will be sub-advised by SummerHaven Investment Management, a Stamford, Conn., based investment management firm.
The fund is designed to provide investment results that generally correspond over the long term to the performance of the price of gold, while generating dividend income through selling gold call options and through collateral interest income.
USCF, which was founded in 2006, now offers 11 ETFs or ETPs across commodity and equity asset classes and manages approximately $4.5 billion in assets. SummerHaven and USCF previously collaborated on three exchange traded products: the United States Copper Index Fund (CPER), United States Commodity Index Fund (USCI) and the USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund (SDCI).
"Physical gold is a portfolio staple that has long provided inflation protection, diversification, and stability in volatile markets. However, gold doesn't earn income on its own. GLDX attempts to add income to gold exposure," John Love, president and CEO of USCF, said in a statement.
Gold offers a hedge against periods of economic stress, including inflation and currency fluctuations; an investment with income and quarterly dividends; portfolio diversification with a low correlation to fixed income and equities; and active management to capitalize on market inefficiencies and manage risk, USCF said.