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United States Commodity Funds LLC Launches the United States Metals Index Fund (USMI)


News provided by

United States Commodity Funds LLC

Jun 19, 2012, 07:00 ET

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ALAMEDA, Calif., June 19, 2012 /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 Metals Index Fund, under the ticker "USMI".

The United States Metals Index Fund (USMI) is an exchange traded product ("ETP") that seeks to reflect the performance of a portfolio of metals futures contracts fully collateralized with U.S. Treasury Bills.   The investment objective of USMI 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 Dynamic Metals Index Total Return, less USMI's expenses.  USMI issued units may be purchased and sold on the NYSE Arca.

United States Metals Index Fund's target is an Index comprised of a group of 10 metals currently traded on the LME, COMEX, and NYMEX exchanges. The Metals Index attempts to maximize backwardation and minimize contango while using contracts in the liquid portions of the futures curve. 

About the SummerHaven Dynamic Metals Index
The SummerHaven Dynamic Metals Index Total Return ("SDMI") 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 SDMI is a rules-based index and tracks the performance of a fully collateralized portfolio of metals 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 Dynamic Metals Index Total Return ("SDMI"), SummerHaven Dynamic Agriculture Index Total Return ("SDAI"), the SummerHaven Copper Index Total Return ("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 http://www.unitedstatescommodityfunds.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. USMI is speculative and involves a high degree of risk. An investor may lose all or substantially all of an investment in the USMI. Funds, such as USMI, that focus on a single sector generally experience greater volatility.

USMI is not a registered investment company so you do not have the protections of the Investment Company Act of 1940, as amended, and USMI 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 USMI to the risks of the metals industry and this could result in large fluctuations in the price of USMI's units.

The price of USMI'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 USMI's units. This may cause the units to trade at a price that is above or below USMI's NAV per unit. Accordingly, changes in the price of units may substantially vary from the changes in the value of the SummerHaven Dynamic Metals Index Total Return (SDMI). If this variation occurs, then you may not be able to effectively use USMI as a way to indirectly invest in the SDMI.

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

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

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

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

                                                                                                USO000619  EXP. 6/1/2013

SOURCE United States Commodity Funds LLC

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