USCF Restaurant Leaders Fund is an exchange traded fund (ETF) designed to capitalize on restaurant companies, one of the fastest growing industries in the United States1. According to the National Restaurant Association (NRA), restaurant revenues are forecasted to reach $782.7 Billion in 2016, up about 5% year over year. In an industry that employs over 14.4 million people and serves about 50 million people each day (numbers which are expected to increase), it is easy to understand how the restaurant industry represents approximately 4% of U.S. Gross Domestic Product (GDP).
Smart Beta Methodology – Uses a four-step selection process that includes two quantitative screens and two dynamic screens. The Restaurant Leaders INDXX Index is rebalanced quarterly.
Definable Investment Solution – May meet the needs for growth investors, sector rotation strategists, and professionals seeking exposure to the restaurant industry.
Transparent and liquid – Holdings are posted each day on the fund’s website. The ETF structure allows investors to trade throughout the day, and use limit, stop, and stop-limit orders.
The USCF Restaurant Leaders Fund (NYSE: MENU) seeks to track the price and yield performance of the Restaurant Leaders INDXX Index (iMENU), before fees and expenses.
The USCF Restaurant Leaders Fund allows investors to access a portfolio of companies in the restaurant industry, in an easy-to-trade ETF. The Index invests in business franchises that are leverageable, scalable with high return on capital and which touch millions of people every day.
About the Restaurant Leaders INDXX Index
The Index is composed of the common stock of U.S. and international restaurant companies. By using a proprietary Smart Beta four step selection process, the index seeks to identify Restaurant Companies that are outperforming or expected to outperform their industry peers. The Index may include small-, mid-, and large-capitalization companies that trade on a U.S. Exchange and have both a minimum market capitalization of $300 million and an average daily trading volume of $1.5 million. The Index is generally expected to include between 30 and 40 Restaurant Companies and will be rebalanced and reconstituted quarterly in March, June, September, and December. At the time the Index is rebalanced, an initial target weight of 70% is equally distributed among all securities classified as Quick Service Restaurants (QSRs), and an initial target weight of 30% is equally distributed among all securities classified as Full Service Restaurants (FSRs). Given the number of eligible securities, it may not be possible to achieve these target weights in either category, in which case there would not be an exact 70%/30% initially targeted split as described above. Additionally, the Index uses market signals to eliminate some of the securities with the lowest expected future performance and increase the weighting of the largest companies in the Index. This process could also cause the Index to vary from the 70%/30% initially targeted split between QSRs and FSRs.
|Total Annual Fund Operating Expenses†||3.50%|
|Fee Waiver & Expense Reimbursement‡||2.85%*|
|Net Expense Ratio‡||0.65%|
|Administrator||Brown Brothers Harriman & Co.|
|Distributor||ALPS Distributors, Inc.|
|General Adviser||USCF Advisers LLC|
|Portfolio Managers||Andrew F Ngim, John Love|
†MENU commenced operations on 11/08/2016.
‡as of Prospectus dated 11/08/2016.
*USCF Advisers LLC (the "Adviser") has contractually agreed to waive or reduce its fees and to reimburse the Fund for its expenses from inception until October 31, 2017, so that the total annual fund operating expenses (excluding interest, taxes, brokerage commissions, expenses related to short sales, other expenses that are capitalized in accordance with generally accepted accounting principles, extraordinary expenses, if any, and payments, if any, under the Fund’s Rule 12b-1 plan) of the Fund are limited to 0.65% of average daily net assets. Prior to such date, the expense limitation may be terminated only by a vote of the Fund's board of trustees (the "Board"). After such date, the expense limitation may be renewed, terminated or revised by the Adviser, but the Adviser must provide the Board with 90 days' notice of any termination. The Adviser is permitted to recoup from the Fund previously waived advisory fees or reimbursed expenses for three years from the date on which fees were waived or expenses reimbursed, as long as such recoupment does not cause the Fund’s total annual fund operating expenses to exceed the expense cap that was applicable during the period in which the fees were waived or expenses were reimbursed.
The performance data quoted above represents past performance. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. Investment return and value of the Fund shares will fluctuate so that an investor's shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted.
Performance data quoted represents past performance and does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.
The Adviser has agreed to waive or reduce its fees and to reimburse the Fund for its expenses from inception through October 31, 2017, limiting total annual operating expenses (excluding interest, taxes, brokerage commissions, expenses related to short sales, and other expenses) to 0.65% of the Fund’s average daily net assets.
The Fund's NAV is calculated by dividing the value of the Fund's total assets less total liabilities by the number of shares outstanding. Share price returns are based on closing prices for the Fund and do not represent the returns an investor would receive if shares were traded at other times.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions apply and will reduce returns. Market returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. Eastern time (when NAV is normally determined for most ETFs), and do not represent the returns you would receive if you traded shares at other times.
†MENU commenced operations on 11/08/2016.
Growth of $10,000 Investment
This chart shows how a hypothetical investment of $10,000 in the Fund at its inception would have performed versus an investment in the Fund’s benchmark index. The values indicate what $10,000 would have grown to over the time period indicated. The hypothetical example does not represent the returns of any particular investment. The performance data quoted above represents past performance. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. Investment return and value of the Fund shares will fluctuate so that an investor's shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted.
Premium / Discount
|Ex-Date||Record Date||Pay Date||Ordinary Income||Short Term Gains||Long Term Gains||Return of Capital||Total|
Restaurant Leaders INDXX Index Information
An investment in the USCF Restaurant Leaders Fund (MENU) may not be suitable for all investors. Investing involves risks, including loss of principal. The market value of shares of common stock can be volatile and change quickly. There is no guarantee that the fund's objective will be met. Fund concentration generally leads to greater price volatility. Investment in small companies generally experience greater price volatility. MENU shares are not individually redeemable. Individual investors must buy and sell MENU shares in the secondary market through their brokerage firm. Brokerage commissions may apply.
The Restaurant Leaders INDXX Index is the exclusive property of Access ETF Solutions LLC (AETFS) which has been licensed by USCF Advisers LLC (USCF), an unaffiliated entity from AETFS. AETFS, its affiliates and their independent providers are not liable for any information errors , incompleteness and delays, or for any actions taken in reliance on information about the Restaurant Leaders INDXX Index.
Past performance of the index is not an indication of future results. Please refer to the information provided about the methodology used to construct the index for more details about it, including the manner in which it is rebalanced, the timing of such rebalancing, criteria for additions and deletions, as well as all index calculations.
The Restaurant Leaders INDXX Index is calculated and maintained by Indxx, LLC, as a third party unaffiliated from AETFS and from USCF. Indxx, LLC does not sponsor, endorse, or promote the index and bears no liability with respect to any such index. AETFS has contracted with Indxx LLC (collectively, with its subsidiaries and affiliates,"Indxx") to license the index registered trademark and calculate and maintain the Index. Indxx has no liability for any errors or omissions in calculating the index.