As competition heats up in the exchange traded fund space, United States Commodity Funds is also jumping into the so-called fee war fray, lowering costs on four of its products.
According to a press release, the United States Commodity Index Fund (NYSEArca: USCI) will have a 0.80% total expense ratio, lowered from 0.95%. Additionally, the United States Copper Index ETF (NYSEArca: CPER), United States Agriculture Index Fund (NYSEArca: USAG) and United States Metals Index Fund (NYSEArca: USMI) now have a 0.65% expense ratio, also down from 0.95%. [April’s Best ETFs: Commodities Cruise]
“These funds were designed with the buy-and-hold investor in mind, and we want to demonstrate that we also view these as long-term investments.” John Hyland, USCF’s Chief Investment Officer, said in the press release. “We believe this will be an effective longer-term strategy to continue to grow our assets.” [Diversify with Commodity ETFs as Correlation to Equities Declines]
The USCommodity Index funds try to reflect the performance of commodity futures contracts.
Specifically, USCI can hold 14 contracts selected from Brent oil, WTI oil, gasoil, heating oil, natural gas, unleaded gasoline, feeder cattle, lean hogs, live cattle, bean oil, corn, soybeans, soybean meal, wheat, aluminum, copper, lead, nickel, tin, zinc, gold, platinu, silver, cocoa, coffee, cotton or sugar.