USCF Sustainable Battery Metals Strategy Fund (ZSB)

Overview

The USCF Sustainable Battery Metals Strategy Fund (ticker: BATY) is designed to provide investors exposure to companies involved in the battery metals supply chain, focusing on sustainability and ethical sourcing. It aims to capitalize on the growing demand for battery metals used in electric vehicles and energy storage.

Reputation and Reliability

USCF is an established issuer known for its commodity-focused ETFs. They have a solid reputation for providing niche investment products.

Management Expertise

USCF has a team with experience in commodity markets and ETF management, though specific details on the BATY management team are less publicly prominent.

Goal

To seek to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the USCF Sustainable Battery Metals Index.

Investment Approach and Strategy

Strategy: The fund tracks the USCF Sustainable Battery Metals Index, which is designed to track the performance of a global basket of listed equity securities of companies that derive at least 50% of their revenues or profits from, or have at least 50% of their assets related to, battery metals or the battery metals supply chain.

Composition The ETF primarily holds stocks of companies involved in mining, refining, processing, and manufacturing battery metals such as lithium, nickel, cobalt, and manganese.

Market Share: BATY's market share is relatively small compared to broader clean energy or commodity ETFs.

Total Net Assets (AUM): 23740000

Key Competitors

• LIT (Global X Lithium & Battery Tech ETF)
• REMX (VanEck Rare Earth/Strategic Metals ETF)
• COPX (Global X Copper Miners ETF)

Competitive Landscape

The competitive landscape includes broad clean energy ETFs, lithium-specific ETFs, rare earth/strategic metals ETFs, and copper mining ETFs. BATY's focus on sustainable battery metals offers a niche appeal, but it faces competition from larger, more established funds with higher liquidity and broader exposure. The sustainability focus is an advantage for ESG-conscious investors. However, BATY is smaller with less AUM than major players like LIT, REMX and COPX.

Historical Performance: Historical performance data unavailable for the full period requested. Need additional time for access and processing.

Benchmark Comparison: Insufficient data to calculate.

Expense Ratio: 0.59

Average Trading Volume

The ETF's average trading volume is relatively low, which may impact the ease of buying and selling shares.

Bid-Ask Spread

The bid-ask spread can be wider than more liquid ETFs, potentially increasing transaction costs.

Market Environment Factors

Demand for battery metals is driven by the growth of the electric vehicle market and energy storage solutions. Economic indicators such as global industrial production and consumer spending on electric vehicles influence BATY's performance. The trend towards sustainable and ethical sourcing also plays a role.

Growth Trajectory

BATY's growth trajectory is linked to the adoption of electric vehicles and the expansion of battery storage capacity. Changes to the fund's strategy or holdings would depend on the evolving battery metals market.

Competitive Edge

BATY's competitive advantage lies in its specific focus on sustainable battery metals, catering to ESG-conscious investors. This differentiates it from broader commodity or clean energy ETFs that may not prioritize sustainability. The fund's index methodology emphasizes companies with a significant portion of their revenue or assets tied to battery metals and sustainability, providing targeted exposure. This allows investors to directly participate in the growth of the electric vehicle and energy storage sectors with a focus on responsible sourcing.

Volatility

BATY's volatility is likely to be influenced by fluctuations in commodity prices and the performance of the underlying companies. Insufficient data to determine the historical volatility.

Market Risk

Specific risks include commodity price volatility, geopolitical risks affecting mining operations, and regulatory changes impacting the battery metals industry. Specific company risk is present when holdings concentrate in a few equities.

Ideal Investor Profile

The ideal investor is someone seeking targeted exposure to the battery metals supply chain, with a focus on sustainability. This includes investors interested in the electric vehicle and energy storage sectors, and who prioritize ESG (Environmental, Social, and Governance) factors.

Market Risk

BATY is more suitable for long-term investors who understand the risks associated with commodity markets and are aligned with the fund's sustainability focus. Active traders may find the liquidity challenging.

The USCF Sustainable Battery Metals Strategy Fund (BATY) provides targeted exposure to the battery metals supply chain with a focus on sustainability. Its competitive advantage lies in its niche appeal to ESG-conscious investors. However, it faces competition from larger, more liquid ETFs and is exposed to commodity price volatility and other market risks. BATY is suitable for long-term investors seeking to capitalize on the growth of the electric vehicle and energy storage sectors, given its sustainable focus.

Data Sources:

• USCF Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and do not constitute investment advice. Past performance is not indicative of future results. Investment involves risk, including the potential loss of principal.