10-Q: United States Commodity Index Funds Trust Q1 2026 Report

United States Commodity Index Funds Trust reports Q1 2026 financial results for its commodity and copper index funds.

Summary

• United States Commodity Index Fund (USCI) reported net income of $64.7 million for the quarter ended March 31, 2026.
• United States Copper Index Fund (CPER) reported a net loss of $32.2 million for the quarter ended March 31, 2026.
• USCI net asset value (NAV) per share increased from $77.48 to $95.34 during the quarter.
• CPER net asset value (NAV) per share decreased from $34.84 to $34.31 during the quarter.
• Total assets for the Trust reached $1.06 billion as of March 31, 2026.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral report; while USCI showed strong gains, CPER's losses reflect the inherent volatility of single-commodity exposure, and both funds are performing within their expected tracking parameters.

Positives

• USCI achieved a total return of 23.05% for the first quarter of 2026.
• Strong performance in the Energy sector contributed to USCI gains.
• The Trust maintains a robust liquidity position with over $1 billion in total assets.
• Tracking error for both funds remained within the established plus or minus 10% benchmark goal.

Negatives

• CPER reported a net loss of $32.2 million, driven by a $70.6 million change in unrealized losses on open commodity futures contracts.
• CPER experienced a negative total return of 1.52% for the quarter.
• Management fees and other operating expenses increased for both funds compared to the prior year period.

Risks

• Market volatility related to geopolitical conflicts, including the Russia-Ukraine war and Middle East tensions.
• Potential for tracking error due to inability to execute trades at closing settlement prices.
• Interest rate risk affecting the value of Treasury holdings.
• Regulatory risks regarding position limits and margin requirements for swaps.
• Credit risk associated with counterparties and futures commission merchants (FCMs).

Future Outlook

Management anticipates that interest rates may continue to increase, potentially allowing the funds to outperform their benchmarks if interest earned exceeds fees and expenses. The funds will continue to monitor geopolitical and economic conditions that impact commodity prices.

Management Comments

• USCF believes that market arbitrage opportunities will cause daily changes in share price to closely track the daily changes in per share NAV.
• USCF anticipates that each Trust Series could possibly outperform its benchmark so long as interest earned is higher than the fees and expenses paid.

Industry Context

StockSavvy.ai notes that the divergence between USCI and CPER performance highlights the impact of sector-specific volatility, particularly in industrial metals versus a diversified commodity basket, amidst ongoing global economic uncertainty.

Comparison to Industry Standards

• USCI performance is benchmarked against the SummerHaven Dynamic Commodity Index (SDCI).
• CPER performance is benchmarked against the SummerHaven Copper Index (SCI).
• The funds utilize quantitative, rules-based strategies similar to other commodity pool operators but maintain specific tracking goals within a 10% error margin.

Legal Proceedings

• The Trust and its sponsor are involved in various legal proceedings, including securities litigation related to the United States Oil Fund, LP, which are currently being contested.

Related Party Transactions

• USCF serves as the sponsor and manager, receiving management fees of 0.80% for USCI and 0.65% for CPER.

Stakeholder Impact

• Shareholders are subject to market risk and the performance of the underlying commodity indices.
• Authorized Participants continue to facilitate the creation and redemption of shares.

Next Steps

• Continued monitoring of commodity futures markets.
• Ongoing compliance with SEC and CFTC reporting requirements.
• Monthly publication of account statements.

Key Dates

Recommendation

The funds are performing as designed relative to their benchmarks. Investors should hold based on their specific commodity exposure needs rather than the quarterly financial results, which are largely a reflection of market movements.

Keywords

Commodity Index Funds, USCI, CPER, Futures Contracts, Copper Index, Commodity Pool, USCF