Commodity ETFs Surge As Investors Hedge Volatility
Source: ETF Trends
Diversification does not eliminate the risk of experiencing investment loss.
John Love Dishes Commodities on Morning Trade Live with Oliver Renick
Source: TD Ameritrade Network
The views of USCF Investments and information discussed in this video are as of the date of publication (or broadcast), are subject to change, and may not reflect the current views or opinions of management.
John Love Interview with Investment News
Source: Investment News
There is no assurance that the investment process will lead to successful investing. The statements and opinions expressed are of the authors and are as of the date of publication.
Kevin Baum Interview with Tom Lydon
Source: ETF Trends
Past performance does not guarantee future results Investing involves risks, including loss of principal. There is no guarantee that the funds' objectives will be met. Fund concentration generally leads to greater price volatility. Foreign investing involves special risks such as currency fluctuations and political uncertainty.
USCF President & CEO John Love talks to Tom Lydon about “What Commodity Investors Should Look For Ahead”
Source: ETF Trends
Past performance does not guarantee future results.
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. Foreign investing involves special risks such as currency fluctuations and political uncertainty. Investment in small companies generally experience greater price volatility.
Federal Reserve (Fed)
"USCF Steps Out With 2 New Liquid Alternative Funds – BUY and BUYN" – John Love Interview Live from the floor of the New York Stock Exchange.
USCF Rings the Opening Bell at the NYSE to celebrate the 10th Anniversary of UNG!
Opening bell ringing at the New York Stock Exchange on July 26, 2016 in celebration of USO’s 10th Anniversary
Source: New York Stock Exchange
How to Use ETFs to Invest in Commodities
Barron's journalist Simon Constable talks to USCF President & CEO, John Love about investing in Commodities through ETFs.
Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. An investor may lose all or substantially all of an investment. Investing in commodity interests subject each Fund to the risks of its related industry. These risks could result in large fluctuations in the price of a particular Fund's respective shares. Funds that focus on a single sector generally experience greater volatility. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.
Diversification does not eliminate the risk of experiencing investment loss. Key Differences Between Asset Classes:
Investing in stocks (shares of ownership in a company), bonds (debt promise issued by a company or government) and commodities (physical, tradeable goods) offers risk and rewards. The main difference among them is a function of risk tolerance and time. Short-term investing can bring high risk and high rewards, longer term investing can bring lower risks and more stable returns.
Stocks: A piece of ownership of a corporation. Owners of stock (called stockholders) are entitled to the company’s profits in the form of dividends, as well as voting rights for company management. Volatily and risk are dependent on the company’s management and sector. Key risks associated with an investment in stocks are:
- Sytematic Risk – also known as market risk, this is the potential for the entire market to decline. Systematic risk cannot be diversified away.
- Unsystematic Risk – the risk that any one stock may go down in value, independent of the stock market as a whole. This risk may be minimized through diversification. This also incorporates business risk and event risk.
- Other risks – opportunity risk and liquidity risk may also apply to stocks in a portfolio.
Bonds: Bonds provide both income and return on capital. Diversification can be achieved by holding a variety of U.S. government, corporate and foreign bonds. If you are worried about inflation, shorten the duration of your holdings, which will reduce the sensitivity of the portfolio to interest rate changes.
Bonds – which generate interest payments – move very steady and predictably. There are four main risks associated with an investment in bonds:
- Interest rate Risk – When interest rates rise, bond prices fall. When interest rates fall, bond prices rise. This is a risk if you need to sell a bond before its maturity dateand interest rates are up. You may end up selling the bond for less than you paid for it.
- Inflation Risk – This is the risk that the return you earn on your investment doesn’t keep pace with inflation. If you hold a bond paying 2% interest and inflation reaches 3%, your return is actually negative (-1%), when adjusted for inflation. You’ll still get your principal back when your bond matures, but it will be worth less in today’s dollars. Inflation risk increases the longer you hold a bond.
- Market Risk – This is the risk that the entire bond market declines. If this happens, the price of your bond investments will likely fall regardless of the quality or type of bonds you hold. If you need to sell a bond before its maturity date, you may end up selling it for less than you paid for it.
- Credit Risk – If you buy bonds from a company or government that isn’t financially stable, there’s more of a risk you’ll lose money. This is called credit risk or default risk. Sometimes, the issuer can’t make the interest payments to investors. It’s also possible the issuer won’t pay back the face value of the bond when it matures.
Commodities: A basket of commodities, including precious metals, energy (e.g., oil) and agricultural goods (e.g., wheat) provides a hedge against inflation. It also lowers the volatility of a portfolio holding only stocks. Commodities are subject to sharp swings in volatility. Futures contracts are used to invest in these accessible via ETFs, but come with an additional level of risk and complication. Commodities prices are determined by global forces of supply and demand.
CEO Magazine Interview of John Love:
USCF President & CEO, John Love spoke to CEO Today magazine and shared valuable insight into the business and working strategies that have been employed by USCF to help grow their business into a thriving enterprise.https://www.ceotodaymagazine.com/2019/04/united-states-commodity-funds-expert-insight-into-etps-and-commodity-trading/
There is no assurance that the investment process will consistently lead to successful investing. The statements and opinions expressed are of the authors and as of the date of publication. Katie Rooney and John Love are registered representative of ALPS Distributors, Inc. Diversification does not eliminate the risk of experiencing investment loss.