USCF, a commodities-focused asset manager, has introduced the USCF Aluminum Strategy Fund (ALUM) on the New York Stock Exchange. ALUM is an actively managed ETF designed to provide returns that align with the long-term price performance of aluminum. While aluminum futures are its primary allocation, the fund will also engage in forward contracts, cash-settled options, and other instruments. Unlike some commodity-targeting ETFs, ALUM does not track a specific benchmark or index.
The fund aims to capitalize on the growing trading activity in aluminum futures, driven by increased demand for the metal. Aluminum is widely used in various industries, from manufacturing to renewable energy, and is expected to see continued growth in demand. Cru International predicted a 40% increase in aluminum demand by 2030. Aluminum’s lightweight, versatile, and recyclable properties make it attractive for applications in renewable energy technologies, among other sectors.
While aluminum can serve as a hedge against inflation, its price can also be subject to volatility, including from algorithmic trading. ALUM comes with an expense ratio of 0.65%.