USCF has launched the USCF Gold Strategy Plus Income Fund (GLDX) with SummerHaven Investment Management, LLC (SummerHaven), a Stamford based investment management firm, as sub-adviser.
GLDX seeks 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. GLDX is an actively managed exchange traded fund (ETF). SummerHaven and USCF previously collaborated on three exchange traded products: the United States Copper Index Fund (NYSE Arca: CPER), United States Commodity Index Fund (NYSE Arca: USCI) and the USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund (NYSE Arca: SDCI) respectively.
“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,” says John Love, President and CEO of USCF. “The ability to combine an income objective with exposure to the gold markets makes makes SummerHaven’s Gold Plus Income strategy a dynamic addition to our long standing partnership.”
“Covered call and ‘buy write’ strategies have been used by equity investors for decades seeking to generate income, and we’re excited to collaborate with USCF and bring this innovative gold strategy to ETF investors. USCF has launched several market-leading commodity ETPs since 2006, and now gold is part of their diversified ETP platform,” says Kurt Nelson, President of SummerHaven Investment Management. “GLDX offers an inflation hedging strategy for investors seeking exposure to the gold markets along with income.”