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 Agriculture Index Fund, under the ticker (NYSEArca:USAG).
The United States Agriculture Index Fund (USAG) is an exchange traded product (“ETP”) that seeks to reflect the performance of a portfolio of agriculture futures contracts fully collateralized with U.S. Treasury Bills. The investment objective of USAG 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 Agriculture Index Total Return(SM), less USAG’s expenses. USAG issued units may be purchased and sold on the NYSE Arca.
United States Agriculture Index Fund’s target is an Index comprised of a group of 14 agricultural commodities currently traded on the ICE Futures, CBOT, KCBT and ICE Canada exchanges. The Agriculture Index attempts to maximize backwardation and minimize contango while using contracts in the liquid portions of the futures curve.
About the SummerHaven Dynamic Agriculture Index
The SummerHaven Dynamic Agriculture Index Total Return (“SDAI”) 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 SDAI is a rules-based index and tracks the performance of a fully collateralized portfolio of agriculture 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 Agriculture Index Total Return(SM) (“SDAI”), the SummerHaven Copper Index Total Return(SM) (“SCI”) and the SummerHaven Dynamic Commodity Index Total Return(SM) (“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.unitedstatesagricultureindexfund.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. USAG is speculative and involves a high degree of risk. An investor may lose all or substantially all of an investment in the USAG. Funds, such as USAG, that focus on a single sector generally experience greater volatility.
USAG is not a registered investment company so you do not have the protections of the Investment Company Act of 1940, as amended, and USAG 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 USAG to the risks of the commodities industry and this could result in large fluctuations in the price of USAG’s units.
The price of USAG’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 USAG’s units. This may cause the units to trade at a price that is above or below USAG’s NAV per unit. Accordingly, changes in the price of units may substantially vary from the changes in the value of the SummerHaven Dynamic Agriculture Index Total Return(SM) (SDAI). If this variation occurs, then you may not be able to effectively use USAG as a way to indirectly invest in the SDAI.
For further discussion of these and additional risks associated with an investment in USAG units, see the prospectus that has preceded or accompanied this announcement, downloaded at http://www.unitedstatesagricultureindexfund.com/PDFS/USAG-Prospectus.pdf.
Not FDIC insured, may lose value, no bank guarantee.
An investment in USAG is not suitable for all investors. Commodity trading is highly speculative and USAG is not suitable for all investors. USAG 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.
USO000580 EXP. 4/01/2013
Katie Rooney 614.775.1246 [email protected]
SOURCE United States Commodity Funds LLC
RELATED LINKS http://www.unitedstatesagricultureindexfund.com