8-K: United States Gasoline Fund Reports $5.6 Million Net Loss for September 2024

The United States Gasoline Fund, LP reported a net loss of $5.6 million for the month of September 2024, primarily driven by trading losses on commodity futures.

Summary

• The United States Gasoline Fund, LP released its monthly account statement for September 2024.
• The fund experienced a net loss of $5,626,890 for the month.
• This loss was primarily due to a realized trading loss of $7,746,988 on commodity futures.
• The fund did have some offsetting gains, including $1,830,058 in unrealized gains on commodity futures, $146,997 in dividend income, and $235,802 in interest income.
• Total expenses for the month were $93,459, including management fees, professional fees, and brokerage commissions.
• The fund's net asset value increased slightly from $96,468,208 at the beginning of the month to $96,535,395 at the end of the month, despite the net loss, due to the addition of 100,000 shares.
• The net asset value per share was $58.51 based on 1,650,000 shares.

Sentiment

Score: 3

Explanation: The document reports a significant net loss, which is a negative indicator for investors. While there were some offsetting gains, the overall sentiment is negative due to the substantial trading losses.

Positives

• The fund generated $1,830,058 in unrealized gains on commodity futures.
• The fund also earned $146,997 in dividend income and $235,802 in interest income.
• The net asset value of the fund increased slightly despite the net loss due to the addition of 100,000 shares.

Negatives

• The fund experienced a significant realized trading loss of $7,746,988 on commodity futures.
• The fund incurred a net loss of $5,626,890 for the month of September 2024.

Risks

• The fund's performance is highly dependent on the volatile commodity futures market.
• Significant trading losses can negatively impact the fund's net asset value.

Management Comments

• Stuart P. Crumbaugh, Chief Financial Officer of United States Commodity Funds LLC, stated that the information in the account statement is accurate and complete to the best of his knowledge and belief.

Industry Context

This report reflects the performance of a commodity-based exchange-traded fund (ETF), which is subject to the volatility of the underlying commodity market. The results are typical for such a fund, where gains and losses are directly tied to the price fluctuations of gasoline futures contracts.

Comparison to Industry Standards

• The United States Gasoline Fund (UGA) is comparable to other commodity-based ETFs like the United States Oil Fund (USO) and the Invesco DB Commodity Index Tracking Fund (DBC).
• These funds typically experience volatility due to the nature of the commodity markets they track.
• A loss of $5.6 million in a single month is not unusual for a fund of this type, especially given the fluctuations in the price of gasoline futures during the period.
• The fund's performance should be compared to the performance of the underlying gasoline futures contracts and other similar funds to assess its relative performance.

Stakeholder Impact

• Shareholders may be concerned about the net loss and the impact on the fund's net asset value.
• The fund's performance will likely affect investor confidence and trading activity.

Key Dates

Keywords

Gasoline Fund, Commodity Futures, Net Loss, Trading Loss, Net Asset Value, UGA, Monthly Account Statement