10-K: Commodity Funds Post Strong 2025 Gains

United States Commodity Index Funds Trust reports significant NAV increases for USCI and CPER in 2025, outperforming benchmarks amidst evolving commodity markets.

Summary

• The United States Commodity Index Funds Trust (the Trust) filed its annual 10-K report for the fiscal year ended December 31, 2025, detailing the performance of its two series: United States Commodity Index Fund (USCI) and United States Copper Index Fund (CPER).
• USCI's Net Asset Value (NAV) per share increased by 17.32% to $77.48 in 2025, outperforming its SummerHaven Dynamic Commodity Index Total Return (SDCI) benchmark by 0.22%.
• CPER's NAV per share surged by 38.09% to $34.84 in 2025, outperforming its SummerHaven Copper Index Total Return (SCI) benchmark by 0.87%.
• The Trust's total assets grew significantly to $761,114,365 in 2025 from $334,931,201 in 2024.
• Net income for the Trust was $118,796,502 in 2025, a substantial increase from $27,408,912 in 2024.
• Both funds primarily invest in futures contracts and hold significant portions of assets in short-term U.S. Treasuries, cash, and cash equivalents.
• USCF, the sponsor, manages the Trust and its series, with SummerHaven Investment Management, LLC providing advisory services.
• Several legal proceedings and regulatory settlements involving USCF, its related funds (like USO), and service providers (RBC Capital, Marex, SummerHaven) are disclosed, some of which are ongoing.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong performance report, with both USCI and CPER significantly increasing NAV and outperforming their respective benchmarks. While legal and regulatory issues for service providers and related entities are noted, the core financial results and growth in assets under management are very positive.

Positives

• USCI's NAV per share increased by 17.32% in 2025, reaching $77.48.
• CPER's NAV per share increased by 38.09% in 2025, reaching $34.84.
• USCI outperformed its SDCI benchmark by 0.22% in 2025.
• CPER outperformed its SCI benchmark by 0.87% in 2025.
• The Trust's total assets grew significantly to $761,114,365 in 2025 from $334,931,201 in 2024.
• Net income for the Trust increased substantially to $118,796,502 in 2025 from $27,408,912 in 2024.
• Realized gains on closed commodity futures contracts for USCI increased to $36,508,035 in 2025 from $11,706,617 in 2024.
• Realized gains on closed commodity futures contracts for CPER increased to $13,488,462 in 2025 from $6,972,050 in 2024.
• CPER saw a significant positive change in unrealized gain on open commodity futures contracts, moving from a loss of $(13,777,846) in 2024 to a gain of $62,028,984 in 2025.
• USCF anticipates that interest rates may continue to increase, potentially leading to outperformance if interest earned exceeds fees and expenses.
• Commodities have historically provided diversification from stocks and bonds, especially during times of uncertainty, outperforming equities in five out of eight past recessions.
• The Trust and its series maintained effective internal control over financial reporting as of December 31, 2025.

Negatives

• USCI experienced a change from an unrealized gain of $8,697,419 in 2024 to an unrealized loss of $(8,002,124) in 2025 on open commodity futures contracts.
• Annualized yield on short-term investments decreased for both USCI (from 5.07% to 4.10%) and CPER (from 5.09% to 4.07%) in 2025 compared to 2024.
• Total liabilities for the Trust significantly increased to $25,756,907 in 2025 from $852,097 in 2024, primarily due to a $24,709,925 payable to broker for CPER.
• RBC Capital, a Futures Commission Merchant (FCM) for the Trust Series, has been involved in multiple significant legal proceedings and regulatory settlements, including a $45 million SEC settlement in August 2024 and a $375,000 FINRA fine in April 2024.
• Marex North America, LLC (MNA), another FCM, settled with the CFTC in September 2020 for $250,000 due to failure to meet minimum adjusted net capital requirements.
• SummerHaven, the commodity trading advisor, settled a CFTC administrative action in May 2021 for $500,000 related to alleged wash trades and supervisory failure.
• The Trust and its related funds (USO) are subject to ongoing class action and derivative litigation (Lucas Class Action, Mehan Action, Cantrell/AML Actions) which could materially adversely affect USCF's financial condition.
• The USCF's LLC Agreement provides limited authority to Non-Management Directors, and the majority shareholder of the parent company (Nicholas D. Gerber) has indirect control to remove any director, raising corporate governance concerns.
• The rate of inflation in the United States is still above the Federal Reserve's stated two percent goal, which could erode the value of cash or bonds.

Risks

• The NAV of a Trust Series shares relates directly to the value of its assets invested in accordance with the Applicable Index and other assets held by a Trust Series and fluctuations in the prices of these assets could materially adversely affect an investment in a Trust Series shares.
• An investment in a Trust Series may provide little or no diversification benefits. Thus, in a declining market, a Trust Series may have no gains to offset losses from other investments, and an investor may suffer losses on an investment in a Trust Series while incurring losses with respect to other asset classes.
• Price volatility may possibly cause the total loss of your investment.
• Natural disasters, public health disruptions (such as the COVID-19 pandemic), and international armed conflicts could impact the price of commodities and/or the value, pricing and liquidity of a Trust Series' investments or assets which, in turn, could cause the loss of your investment in the Trust Series.
• Historical performance of a Trust Series and the Applicable Benchmark Component Futures Contracts is not indicative of future performance.
• The market price at which investors buy or sell shares may be significantly less or more than NAV.
• Daily percentage changes in a Trust Series NAV may not correlate with daily percentage changes in the price of the Applicable Index.
• An investment in a Trust Series is not a proxy for investing in the commodities markets, and the daily percentage changes in the price of the Applicable Benchmark Component Futures Contracts, or the NAV of the Trust Series, may not correlate with daily percentage changes in the spot price of the physical commodities that underlie the Applicable Index.
• The price relationship between each Applicable Index at any point in time and the Futures Contracts that will become the Applicable Benchmark Component Futures Contracts on the next rebalancing date will vary and may impact both a Trust Series total return and the degree to which its total return tracks that of commodity price indices.
• Accountability levels, position limits, and daily price fluctuation limits set by the exchanges have the potential to cause tracking error, which could cause the price of shares to substantially vary from the price of the Applicable Index.
• Risk mitigation measures that could be imposed by the Trust Series FCMs have the potential to cause tracking error by limiting a Trust Series investments, including its ability to fully invest in the Applicable Benchmark Component Futures Contract and other Futures Contracts, which means that changes in the price of the Trust Series shares could substantially vary from changes in the prices of the Applicable Benchmark Component Futures Contracts.
• An investor's tax liability may exceed the amount of distributions, if any, on its shares.
• An investor's allocable share of taxable income or loss may differ from its economic income or loss on the shares.
• Items of income, gain, deduction, loss and credit with respect to shares could be reallocated, for U.S. federal income tax purposes and the Trust Series could be liable for U.S. federal income tax, if the IRS does not accept the assumptions and conventions applied by the Trust Series in allocating those items, with potential adverse consequences for an investor.
• Each Trust Series could be treated as a corporation for U.S. federal income tax purposes, which may substantially reduce the value of the shares.
• The Trust is organized as a Delaware statutory trust in accordance with the provisions of the Trust Agreement and applicable state law, but each Trust Series is treated as a partnership for U.S. federal income tax purposes, and therefore, each Trust Series has a more complex tax treatment than traditional mutual funds.
• If the Trust Series are required to withhold tax with respect to any non-U.S. shareholders, the cost of such withholding may be borne by all shareholders.
• The impact of changes in U.S. federal income tax laws on each Trust Series is uncertain.
• Each Trust Series will be subject to credit risk with respect to counterparties to OTC contracts entered into by the Trust on behalf of a Trust Series.
• Valuing OTC derivatives may be less certain than valuing exchange-traded and/or cleared financial instruments.
• Each Trust Series rights under an OTC contract may be restricted by regulations.
• The use of swap agreements may expose a Trust Series to early termination risk, which could result in significant losses to the Trust Series.
• Neither Trust Series is leveraged, but a Trust Series could become leveraged if it had insufficient assets to completely meet its margin or collateral requirements relating to its investments.
• A Trust Series may temporarily limit the offering of Creation Baskets.
• The Trust Series pay fees and expenses that are incurred regardless of whether they are profitable.
• You will have no rights to participate in the management of a Trust Series and will have to rely on the duties and judgment of USCF to manage the Trust Series.
• The Trust Series is subject to actual and potential inherent conflicts involving USCF, various commodity futures brokers and Authorized Participants, USCFs officers, directors and employees do not devote their time exclusively to the Trust Series.
• Certain of a Trust Series investments could be illiquid, which could cause large losses to investors at any time or from time to time.
• The Trust Series are not actively managed and their investment objectives are for the daily changes in percentage terms of their shares per share NAV for any period of 30 successive valuation days to be within plus/minus ten percent (10%) of the average daily percentage change in the price of the Applicable Benchmark Component Futures Contracts over the same period.
• A Trust Series may not meet the listing standards of NYSE Arca, which would adversely impact an investor's ability to sell shares.
• The NYSE Arca may halt trading in a Trust Series shares, which would adversely impact an investor's ability to sell shares.
• The liquidity of a Trust Series shares may also be affected by the withdrawal from participation of Authorized Participants, which could adversely affect the market price of the shares.
• Shareholders that are not Authorized Participants may only purchase or sell their shares in secondary trading markets, and the conditions associated with trading in secondary markets may adversely affect investors investment in the shares.
• The lack of an active trading market for a Trust Series shares may result in losses on an investor's investment in a Trust Series at the time the investor sells the shares.
• SummerHaven is leanly staffed and relies heavily on key personnel to manage advisory activities.
• USCFs LLC Agreement provides limited authority to the Non-Management Directors, and any Director of USCF may be removed by USCFs parent company, which is wholly owned by The Marygold Companies, Inc., a controlled public company where the majority of shares are owned by Nicholas D. Gerber along with certain of his family members and certain other shareholders.
• There is a risk that a Trust Series will not earn trading gains sufficient to compensate for the fees and expenses that it must pay and as such a Trust Series may not earn any profit.
• Each Trust Series is subject to extensive regulatory reporting and compliance.
• Fewer representative commodities may result in greater Applicable Index volatility.
• Regulatory changes or actions, including the implementation of new legislation, are impossible to predict but may significantly and adversely affect a Trust Series.
• The Trust is not a registered investment company, so shareholders do not have the protections of the 1940 Act.
• Trading in international markets could expose a Trust Series to credit and regulatory risk.
• Each Trust Series and USCF may have conflicts of interest, which may permit them to favor their own interests to the detriment of shareholders.
• The Trust Series, USCF and SummerHaven may have conflicts of interest, which may cause them to favor their own interests to the detriment of shareholders.
• Shareholders have very limited voting rights, which will limit the ability to influence matters such as amending the Trust Agreement, changing a Trust Series basic investment objective, dissolving a Trust Series, or selling or distributing a Trust Series assets.
• A Trust Series could terminate at any time and cause the liquidation and potential loss of an investor's investment and could upset the overall maturity and timing of an investor's investment portfolio.
• The Trust Series do not expect to make cash distributions.
• An unanticipated number of Redemption Basket requests during a short period of time could have an adverse effect on a Trust Series NAV.
• The suspension in the ability of Authorized Participants to purchase Creation Baskets could cause a Trust Series NAV to differ materially from its trading price.
• The Trust Series may be subject to interest rate risk, which may prevent them from investing fully at prevailing rates until any current investments in Treasuries mature in order to avoid selling those investments at a loss.
• As inflation increases, the present value of a Trust Series assets may decline.
• A Trust Series may potentially lose money by investing in government money market funds.
• The failure or bankruptcy of a clearing broker could result in a substantial loss of the Trust Series assets and could impair the Trust Series in its ability to execute trades.
• The failure or bankruptcy of the Trust Series Custodian could result in a substantial loss of the Trust Series assets.
• The liability of SHIM and SummerHaven is limited, and the value of the shares may be adversely affected if USCF and any Trust Series are required to indemnify SHIM and/or SummerHaven.
• The liability of USCF and the Trustee are limited, and the value of the shares will be adversely affected if any Trust Series is required to indemnify the Trustee or USCF.
• Although the shares of each Trust Series are limited liability investments, certain circumstances such as bankruptcy or indemnification of a Trust Series by a shareholder will increase the shareholder's liability.
• Investors cannot be assured of the continuation of the agreement between SummerHaven and USCF for use of an Applicable Index, and discontinuance of an Applicable Index may be detrimental to a Trust Series.
• Investors cannot be assured of SummerHaven's continued services, and discontinuance may be detrimental to a Trust Series.
• All of the Trust Series are series of the Trust and, as a result, a court could potentially conclude that the assets and liabilities of one Trust Series are not segregated from those of another Trust Series, thereby potentially exposing assets in one Trust Series to the liabilities of another Trust Series.
• The Trust Agreement limits the forum in which claims may be brought against USCF, the Trust, the Trustee or their respective directors and officers.
• USCF and the Trustee are not obligated to prosecute any action, suit or other proceeding in respect of any Trust Series property.
• Competing claims of intellectual property rights may adversely affect a Trust Series and an investment in a Trust Series shares.
• Due to the increased use of technologies, intentional and unintentional cyber-attacks pose operational and information security risks.
• A Trust Series investment returns could be negatively affected by climate change and greenhouse gas restrictions.
• USCF is the subject of class action, derivative, and other litigation. In light of the inherent uncertainties involved in litigation matters, an adverse outcome in this litigation could materially adversely affect USCFs financial condition.

Future Outlook

USCF anticipates that interest rates may continue to increase over the near future from historical lows, potentially leading to outperformance if interest earned exceeds fees and expenses. For copper, the longer-term outlook suggests robust demand from China and new technologies, with supply likely to remain constrained, potentially leading to price increases, though prices may face pressure during economic contractions. The effect of any future regulatory changes on the Trust Series is impossible to predict but could be substantial and adverse. An infectious disease outbreak may arise in the future with unforeseen effects, and government responses could impact investment values. The rate of inflation in the United States is still above the Federal Reserve's stated two percent goal, despite interest rate reductions in 2024.

Management Comments

• USCF believes that the market arbitrage opportunities will cause the daily changes in USCI's share price on the NYSE Arca on a percentage basis to closely track the daily changes in USCI's per share NAV on a percentage basis.
• USCF believes that the net effect of this expected relationship and the expected relationship described above between USCI's per share NAV and the SDCI will be that the daily changes in the price of USCI's shares on the NYSE Arca on a percentage basis will closely track the daily changes in the SDCI on a percentage basis, less USCI's expenses.
• USCF believes that market arbitrage opportunities will cause daily changes in CPER's share price on the NYSE Arca on a percentage basis, to closely track the daily changes in CPER's per share NAV on a percentage basis.
• USCF believes that the net effect of this expected relationship and the expected relationship described above between CPER's per share NAV and the SCI will be that the daily changes in the price of CPER's shares on the NYSE Arca on a percentage basis will closely track the daily changes in the SCI on a percentage basis, less CPER's expenses.
• USCF anticipates that interest rates may continue to increase over the near future from historical lows.
• It is anticipated that fees and expenses paid by each Trust Series may continue to be lower than interest earned by each Trust Series. As such, USCF anticipates that each Trust Series could possibly outperform its benchmark so long as interest earned is higher than the fees and expenses paid by each Trust Series.
• USCF intends to maintain separate and distinct records for each Trust Series and account for each Trust Series separately from any other series of the Trust.
• USCF believes that it is necessary for each member of the Board to possess many qualities and skills. USCF further believes that all directors should possess a considerable amount of business management and educational experience.
• USCF believes that Mr. Love is best situated to serve as Chairman of USCF because he is the director most familiar with the business of USCF as the President and CEO of USCF.

Industry Context

StockSavvy.ai notes that the strong performance of both USCI and CPER in 2025 reflects a broader rally in commodity futures prices, with the SummerHaven Dynamic Commodity Index (SDCI) outperforming other major diversified commodity indexes like S&P GSCI and Bloomberg Commodity Index. The significant increase in copper prices, driven by growing undersupply forecasts and increased demand from China and new technologies, highlights the specific tailwinds for industrial metals. The discussion of inflation and interest rate dynamics, including the Federal Reserve's actions, positions these commodity funds as potential hedges against inflation, a trend that has been observed since the COVID-19 pandemic. The ongoing geopolitical conflicts (Russia-Ukraine war, Middle East) are acknowledged as factors affecting commodity prices, though copper's specific reliance on supply from those regions is noted as less significant compared to other metals.

Comparison to Industry Standards

• The SummerHaven Dynamic Commodity Index Total Return (SDCI) achieved an 18.75% return in 2025, outperforming the S&P GSCI Commodity Index Total Return (6.09%), Bloomberg Commodity Index Total Return (9.38%), and Deutsche Bank Index Quant Optimum Yield Diversified Commodity Index Total Return (6.07%) for the same period.
• The SummerHaven Copper Index Total Return (SCI) achieved a 39.49% return in 2025, outperforming the Bloomberg Copper Subindex Total Return (38.67%) for the same period.
• Historically, commodities have provided diversification from stocks and bonds, outperforming equities in five out of eight recessions, with notable returns of 26% and 254% during two 1970s recessions when equities were down -33% and -45% respectively.
• The SCI's Annualized Sharpe Ratio of 0.50 from December 31, 1997, to December 31, 2025, is higher than Bloomberg Copper Subindex Total Return (0.41) and Spot Copper (less storage) (0.29), indicating better risk-adjusted performance.
• The SDCI's Annualized Sharpe Ratio of 0.58 from December 31, 1997, to December 31, 2025, is significantly higher than S&P GSCI (0.09), DBIQ OY TR (0.09), and BCOM TR (0.33), suggesting superior risk-adjusted returns compared to these diversified commodity indices.

Management Changes

Corporate Governance

Legal Proceedings

• Optimum Strategies Action: A class action lawsuit against USO and USCF, asserting claims under the Securities Exchange Act of 1934 and the Connecticut Uniform Securities Act, was dismissed with prejudice on March 15, 2023.
• SEC and CFTC Investigations: USCF and USO resolved investigations with the SEC and CFTC on November 8, 2021, resulting in cease-and-desist orders and civil monetary penalties totaling $2,500,000 for violations related to the 1933 Act and Commodity Exchange Act.
• In re: United States Oil Fund, LP Securities Litigation (Lucas Class Action): An ongoing putative class action against USCF, USO, and certain individuals, alleging violations of the 1933 Act and Exchange Act related to disclosures during extraordinary oil market conditions in 2020. The court granted a motion to dismiss without prejudice on September 29, 2025, and a motion to amend the complaint is pending.
• Mehan Action: An ongoing derivative action filed on behalf of USO against USCF and certain individuals, alleging breach of fiduciary duties and failure to act in good faith, currently stayed pending disposition of motions to dismiss in the Lucas Class Action.
• In re United States Oil Fund, LP Derivative Litigation (Cantrell and AML Actions): Consolidated derivative actions against USCF, USO, and certain individuals, alleging violations of the Exchange Act and common law claims, currently stayed pending final disposition of motions to dismiss in the Lucas Class Action.
• RBC Capital Markets, LLC (FCM) Legal Proceedings:
• LIBOR Litigation: RBC and other defendants settled multiple class actions related to U.S. dollar LIBOR, with settlements totaling $101 million, $3.45 million, and $1.91 million receiving final court approval in 2023 and 2024. Individual actions remain ongoing.
• Royal Bank of Canada Trust Company (Bahamas) Limited Proceedings: A French appellate court rendered a judgment of conviction against RBC Bahamas on March 5, 2024, for complicity in estate tax fraud; RBC Bahamas has appealed to the French Supreme Court, staying the conviction and its effects. The U.S. Department of Labor granted a temporary one-year QPAM exemption to RBC Capital, commencing March 5, 2024, with longer-term relief sought.
• SEC Investigation: RBC Capital settled with the SEC in August 2024 for $45 million concerning compliance with records preservation requirements for business communications on unapproved devices. A request to modify the settlement order was denied by the SEC on April 15, 2025.
• FINRA Disciplinary Action: RBC Capital settled with FINRA on April 29, 2024, paying a $375,000 fine and $393,833.50 in restitution for sending inaccurate trade confirmations and failing to send required confirmations for dividend reinvestment program transactions.
• U.K. Government Bonds Litigation: RBC Europe Limited and RBC Capital were named in a putative class action alleging anti-competitive conduct; a motion to dismiss was granted without prejudice in September 2024, and an agreement to dismiss the action with prejudice was executed on October 31, 2024, subject to court approval.
• SEC Retirement Plan Investigation: RBC Capital agreed to a settlement on April 24, 2020, for failing to disclose potential conflicts of interest to retail retirement account customers, paying disgorgement of $2,607,676, interest of $631,331, and a civil penalty of $650,000.
• Marex North America, LLC (FCM) Legal Proceedings: Settled with the CFTC in September 2020 to pay a $250,000 monetary penalty for failure to meet minimum adjusted net capital requirements.
• SummerHaven Investment Management, LLC (Commodity Trading Advisor) Legal Proceedings: Settled a CFTC administrative action on May 18, 2021, agreeing to pay a civil monetary penalty of $500,000 for alleged wash trades and supervisory failure.

Related Party Transactions

• USCF, as sponsor, receives a management fee from USCI (0.80% of average daily total net assets) and CPER (0.65% of average daily total net assets).
• USCF pays the fees of the Marketing Agent (ALPS Distributors, Inc.), Administrator, and Custodian (BNY Mellon).
• USCF pays SummerHaven Investment Management, LLC (trading advisor) an advisory fee and a sublicense fee for the use of the Applicable Indices.
• USCF pays the Trustee (Wilmington Trust Company) an annual fee of $3,300.
• USCF's officers, directors, and employees also serve other entities, including other commodity pools managed by USCF, creating potential conflicts of interest.
• Nicholas D. Gerber, along with family members and other shareholders, owns the majority of shares in The Marygold Companies, Inc., which is the ultimate parent of USCF, giving him indirect control over USCF.
• The Trust Series share directors' fees and officers' liability insurance on a pro rata basis with other Trust Series and Related Public Funds.

Stakeholder Impact

• Shareholders: Experienced significant positive returns in 2025 for both USCI and CPER. However, they face risks from market volatility, tracking error, and potential tax liabilities exceeding distributions. Limited voting rights mean reliance on USCF's management. Ongoing litigation involving USCF and its related funds could impact shareholder value.
• USCF (Sponsor): Benefits from increased management fees due to higher average daily net assets of USCI and CPER. Faces financial and reputational risks from ongoing litigation and past regulatory settlements involving itself and its affiliates.
• Service Providers (FCMs, Administrator, Marketing Agent, CTA): Continue to receive fees for their services. FCMs (RBC Capital, MNA/MCM) have faced significant regulatory penalties and litigation, indicating potential operational and compliance risks that could indirectly affect the Trust Series.
• Regulators (SEC, CFTC, FINRA, NFA): Actively involved in oversight and enforcement, as evidenced by numerous settlements and investigations involving USCF and its service providers, aiming to protect investors and ensure market integrity.

Next Steps

• USCF and USO intend to continue to vigorously contest claims in the In re: United States Oil Fund, LP Securities Litigation (Lucas Class Action).
• USCF, USO, and other defendants intend to vigorously contest claims in the Mehan Action and In re United States Oil Fund, LP Derivative Litigation.
• RBC Bahamas has appealed its conviction to the French Supreme Court, with the conviction and its effects stayed pending the outcome.
• RBC has sought longer-term relief from the U.S. Department of Labor regarding the QPAM exemption.
• The agreement to dismiss the U.K. government bonds litigation is subject to court approval.
• The plaintiff in the Lucas Class Action filed a motion for leave to file a proposed second consolidated amended complaint, which defendants have opposed and remains pending.

Key Dates

Recommendation

The United States Commodity Index Funds Trust, through its USCI and CPER series, demonstrated exceptional performance in 2025, with significant NAV growth and outperformance against their respective benchmarks. The substantial increase in total assets and net income indicates strong operational execution and favorable market conditions for commodities, particularly copper. While there are ongoing legal proceedings and regulatory challenges for related entities, the core investment strategy has proven effective, and the funds are well-positioned to capitalize on anticipated rising interest rates and robust commodity demand. The higher Sharpe Ratios for both indices suggest favorable risk-adjusted returns compared to industry peers.

Keywords

commodity index fund, copper index fund, USCI, CPER, SEC filing, 10-K, futures contracts, commodity pool operator, USCF, SummerHaven Dynamic Commodity Index, SummerHaven Copper Index, financial performance, investment management, exchange-traded fund, ETF, commodity markets, risk factors, corporate governance, legal proceedings, financial reporting, asset management, NYSE Arca, commodities regulation, arbitrage, contango, backwardation, net asset value, NAV, trading strategy, market risk, credit risk, cybersecurity, inflation, interest rates, tariffs