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Attention ETF Traders and Investors, United States Commodity Funds LLC Launches the United States Copper Index Fund (CPER)


News provided by

United States Commodity Funds LLC

Nov 15, 2011, 07:00 ET

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ALAMEDA, Calif., Nov. 15, 2011 /PRNewswire/ -- United States Commodity Funds LLC, a sponsor of exchange traded commodity funds, listed for trading on the New York Stock Exchange Arca a new exchange traded commodity index fund, United States Copper Index Fund, under the ticker "CPER".

The United States Copper Index Fund (CPER) is an exchange traded product ("ETP") that seeks to reflect the performance of a portfolio of copper futures contracts fully collateralized with 3-month U.S. Treasury Bills.  The investment objective of CPER is for the daily changes in percentage terms of its units' net asset value ("NAV") to reflect the daily changes in percentage terms of the SummerHaven Copper Index, less CPER's expenses.  CPER issued units may be purchased and sold on the NYSE Arca.

United States Copper Index Fund's target is a portfolio of copper futures contracts designed to be an investment benchmark for copper as an asset class.  The Copper Index is composed of copper futures contracts on the Comex exchange.  The Copper Index attempts to maximize backwardation and minimize contango while using contracts in the liquid portions of the futures curve.

Copper is a metal that has global and widespread uses across multiple industries.  Copper futures contracts are one of the most actively traded of the metals futures contracts and serves as the single commodity in the Copper Index.  

About the SummerHaven Dynamic Commodity Index

The SummerHaven Copper Index ("SCI") is an innovative approach to commodity investing that uses fundamental signals about underlying physical markets to create an active benchmark for commodity futures investors. The SCI is a rules-based index and tracks the performance of a fully collateralized portfolio of copper futures, based on observable price signals.

About SummerHaven Index Management, LLC

SummerHaven Index Management, LLC creates innovative commodities indices focused on providing investors with better risk-adjusted returns than traditional commodity index benchmarks. The firm is the owner, creator and licensor of commodity indices including the SummerHaven Copper Index ("SCI") and the SummerHaven Dynamic Commodity Index Total Return ("SDCI"). SummerHaven Index Management's principals include K. Geert Rouwenhorst, an academic who is one of the authors of widely cited research on commodities futures investing including "Facts and Fantasies about Commodity Futures" and "Fundamentals of Commodities Futures Returns". The firm is led by a seasoned management team with over 50 years of collective Wall Street experience in commodity futures, capital markets, investment management, and exchange traded products.

For additional information please read attached Prospectus, call 800-920-0259, or visit www.unitedstatescopperindexfund.com.

This material must be preceded or accompanied by a prospectus. Please read it carefully before investing or sending money.

Commodities and futures generally are volatile and are not suitable for all investors. The Fund is speculative and involves a high degree of risk. An investor may lose all or substantially all of an investment in the Fund. Funds that focus on a single sector generally experience greater volatility.

CPER is not a registered investment company so you do not have the protections of the Investment Company Act of 1940, as amended, and CPER is not subject to regulations thereunder. Accordingly, you do not have the protections afforded by that statute which include, for example: (1) controls over activities of an investment company's investment adviser; (2) an express private right of action for shareholders; (3) restrictions on transactions between the fund and the adviser; (4) restrictions on investments; (5) regulation of adviser services and fees; and (6) capital structure requirements, including restrictions on debt.

Investing in commodity futures interests subjects CPER to the risks of the commodities industry and this could result in large fluctuations in the price of CPER's units.

The price of CPER's units may be influenced by factors such as the short-term supply and demand for commodity futures and the short-term supply and demand for CPER's units. This may cause the units to trade at a price that is above or below CPER's NAV per unit. Accordingly, changes in the price of units may substantially vary from the changes in the value of the SummerHaven Copper Index (SCI). If this variation occurs, then you may not be able to effectively use CPER as a way to indirectly invest in the SummerHaven Copper Index.

For further discussion of these and additional risks associated with an investment in CPER units, see the prospectus that has preceded or accompanied this announcement, downloaded at http://www.unitedstatescopperindexfund.com/PDFS/CPER-Prospectus.pdf.

Not FDIC insured, may lose value, no bank guarantee.

An investment in CPER is not suitable for all investors.  Commodity trading is highly speculative and CPER is not suitable for all investors.  Commodity trading is highly speculative and CPER is likely to be volatile and could suffer from periods of prolonged decline in value.

Shares are not individually redeemable and the owners of Shares may purchase or redeem Shares from a Fund in Creation Units only.

SOURCE United States Commodity Funds LLC

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