United States Commodity Index Funds Trust [CPER] Filings

10-Q 1 usci-20240630x10q.htm 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2024.

☐Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to .

Commission file number: 001-34833

United States Commodity Index Funds Trust

(Exact name of registrant as specified in its charter)

Delaware		27-1537655
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

1850 Mt. Diablo Boulevard, Suite 640

Walnut Creek, California 94596

(Address of principal executive offices) (Zip Code)

(510) 522-9600

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered or to be registered pursuant to Section 12(b) of the Act.

Title of each class:	Trading Symbol(s)	Name of each exchange on which registered:
Shares of United States Commodity Index Fund	USCI	NYSE Arca, Inc.
Shares of United States Copper Index Fund	CPER	NYSE Arca, Inc.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☐	Accelerated Filer	☒
Non-Accelerated Filer	☐	Smaller Reporting Company	☐
Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided in Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.). ☐ Yes ☒ No

The number of outstanding shares of each series of the registrant as of August 5, 2024 are included in the table below:


		Number of Outstanding Shares as of August 5, 2024
United States Commodity Index Fund		2,900,000
United States Copper Index Fund		6,700,000
Total		9,600,000

Table of Contents

United States Commodity Index Funds Trust

Table of Contents


Part I. FINANCIAL INFORMATION	Page

Item 1. Condensed Financial Statements.	1

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.	34

Item 3. Quantitative and Qualitative Disclosures About Market Risk.	73

Item 4. Controls and Procedures.	74

Part II. OTHER INFORMATION

Item 1. Legal Proceedings.	75

Item 1A. Risk Factors.	78

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	78

Item 3. Defaults Upon Senior Securities.	79

Item 4. Mine Safety Disclosures.	79

Item 5. Other Information.	79

Item 6. Exhibits.	80

Table of Contents

Part I. FINANCIAL INFORMATION

Item 1. Condensed Financial Statements.

Index to Condensed Financial Statements


Documents		Page

Condensed Statements of Financial Condition at June 30, 2024 (Unaudited) and December 31, 2023		2-4

Condensed Schedules of Investments (Unaudited) at June 30, 2024 and December 31, 2023		5-9

Condensed Statements of Operations (Unaudited) for the three and six months ended June 30, 2024 and 2023		11-13

Condensed Statements of Changes in Capital (Unaudited) for the three and six months ended June 30, 2024 and 2023		14-16

Condensed Statements of Cash Flows (Unaudited) for the six months ended June 30, 2024 and 2023		17-19

Notes to Condensed Financial Statements (Unaudited) for the period ended June 30, 2024		20-33

Table of Contents

United States Commodity Index Funds Trust

Condensed Statements of Financial Condition

At June 30, 2024 (Unaudited) and December 31, 2023

United States Commodity Index Fund


	June 30, 2024		December 31, 2023
Assets
Cash and cash equivalents (at cost $170,014,778 and $159,067,804, respectively) (Notes 2 and 6)	$	170,014,778	$	159,067,804
Equity in trading accounts:
Cash and cash equivalents (at cost $16,249,999 and $13,041,505, respectively)		16,249,999		13,041,505
Unrealized gain (loss) on open commodity futures contracts		(2,643,819)		(3,305,080)
Dividends receivable		291,740		268,784
Interest receivable		191,178		333,401
Prepaid insurance		22,077		14,764

Total Assets	$	184,125,953	$	169,421,178

Liabilities and Capital
Management fees payable (Note 4)	$	120,320	$	121,486
Professional fees payable		106,539		264,875
Brokerage commissions payable		3,955		3,955
Directors’ fees payable		5,000		4,294

Total Liabilities		235,814		394,610

Commitments and Contingencies (Notes 4, 5 & 6)

Capital
Sponsor		—		—
Shareholders		183,890,139		169,026,568
Total Capital		183,890,139		169,026,568

Total Liabilities and Capital	$	184,125,953	$	169,421,178

Shares outstanding		2,950,000		3,000,000
Net asset value per share	$	62.34	$	56.34
Market value per share	$	62.23	$	56.28

See accompanying notes to condensed financial statements.

Table of Contents

United States Commodity Index Funds Trust

Condensed Statements of Financial Condition

At June 30, 2024 (Unaudited) and December 31, 2023

United States Copper Index Fund


	June 30, 2024		December 31, 2023
Assets
Cash and cash equivalents (at cost $201,336,046 and $125,475,483, respectively) (Notes 2 and 6)	$	201,336,046	$	125,475,483
Equity in trading accounts:
Cash and cash equivalents (at cost $18,319,837 and $1,625,711, respectively)		18,319,837		1,625,711
Unrealized gain (loss) on open commodity futures contracts		(3,066,813)		3,996,334
Dividends receivable		225,579		148,433
Interest receivable		327,691		332,445
Prepaid professional fees		—		9,610
Prepaid insurance		16,059		4,521

Total Assets	$	217,158,399	$	131,592,537

Liabilities and Capital
Management fees payable (Note 4)	$	119,973	$	71,188
Professional fees payable		43,633		160,958
Directors’ fees payable		6,632		7,049

Total Liabilities		170,238		239,195

Commitments and Contingencies (Notes 4, 5 & 6)

Capital
Sponsor		—		—
Shareholders		216,988,161		131,353,342
Total Capital		216,988,161		131,353,342

Total Liabilities and Capital	$	217,158,399	$	131,592,537

Shares outstanding		7,950,000		5,450,000
Net asset value per share	$	27.29	$	24.10
Market value per share	$	27.21	$	24.14

See accompanying notes to condensed financial statements.

Table of Contents

United States Commodity Index Funds Trust

Condensed Statements of Financial Condition

At June 30, 2024 (Unaudited) and December 31, 2023

United States Commodity Index Funds Trust


	June 30, 2024		December 31, 2023
Assets
Cash and cash equivalents (at cost $371,350,824 and $284,543,287, respectively) (Notes 2 and 6)	$	371,350,824	$	284,543,287
Equity in trading accounts:
Cash and cash equivalents (at cost $34,569,836 and $14,667,216, respectively)		34,569,836		14,667,216
Unrealized gain (loss) on open commodity futures contracts		(5,710,632)		691,254
Dividends receivable		517,319		417,217
Interest receivable		518,869		665,846
Prepaid professional fees		—		9,610
Prepaid insurance		38,136		19,285

Total Assets	$	401,284,352	$	301,013,715

Liabilities and Capital
Management fees payable (Note 4)	$	240,293	$	192,674
Professional fees payable		150,172		425,833
Brokerage commissions payable		3,955		3,955
Directors’ fees payable		11,632		11,343

Total Liabilities		406,052		633,805

Commitments and Contingencies (Notes 4, 5 and 6)

Capital
Sponsor		—		—
Shareholders		400,878,300		300,379,910
Total Capital		400,878,300		300,379,910

Total Liabilities and Capital	$	401,284,352	$	301,013,715

Shares Outstanding		10,900,000		8,450,000

See accompanying notes to condensed financial statements.

Table of Contents

United States Commodity Index Funds Trust

Condensed Schedule of Investments (Unaudited)

At June 30, 2024

United States Commodity Index Fund


				Fair
				Value/Unrealized
				Gain (Loss) on
				Open
			Number of	Commodity		% of Partners’
	Notional Amount		Contracts	Contracts		Capital
Open Commodity Futures Contracts - Long
United States Contracts
CME Lean Hogs Futures LH August 2024 contracts, expiring August 2024	$	13,391,390	379	$	176,810	0.09
CME Live Cattle Futures LC August 2024 contracts, expiring August 2024		12,818,910	178		383,350	0.21
NYMEX RBOB Gasoline Futures RB September 2024 contracts, expiring August 2024		13,350,939	127		(170,625)	(0.09)
ICE Cocoa Futures CC September 2024 contracts, expiring September 2024		14,207,000	168		(1,218,920)	(0.66)
CBOT Soybean Meal Futures SM September 2024 contracts, expiring September 2024		13,395,150	382		(571,410)	(0.31)
ICE Coffee Futures KC September 2024 contracts, expiring September 2024		13,062,506	153		(49,856)	(0.03)
NYMEX WTI Crude Oil Futures CL October 2024 contracts, expiring September 2024		12,541,742	166		698,418	0.38
COMEX Copper Futures HG September 2024 contracts, expiring September 2024		14,112,288	120		(937,788)	(0.51)
COMEX Gold 100 OZ Futures GC October 2024 contracts, expiring October 2024		13,178,010	56		51,990	0.03
CBOT Soybean Futures S November 2024 contracts, expiring November 2024		14,074,275	237		(991,875)	(0.54)
ICE Cotton Futures CT December 2024 contracts, expiring December 2024		13,496,330	350		(775,580)	(0.42)
United Kingdom Contracts
ICE Low Sulphur Gasoil Futures QS September 2024 contracts, expiring September 2024		12,658,350	168		512,850	0.28
ICE Brent Crude Futures CO November 2024 contracts, expiring September 2024		12,580,660	158		612,340	0.33
Foreign Contracts
LME Tin Futures LT July 2024 contracts, expiring July 2024*		13,223,303	79		(372,768)	(0.20)
LME Tin Futures LT August 2024 contracts, expiring August 2024*		13,217,174	82		168,506	0.09
Open Commodity Futures Contracts - Short^**
Foreign Contracts
LME Tin Futures LT July 2024 contracts, expiring July 2024*		(12,691,274)	79		(159,261)	(0.09)
Total Open Futures Contracts^*	$	186,616,753	2,882	$	(2,643,819)	(1.44)

See accompanying notes to condensed financial statements.

Table of Contents

United States Commodity Index Funds Trust

Condensed Schedule of Investments (Unaudited)

At June 30, 2024 (continued)

United States Commodity Index Fund


	Shares/Principal				% of Partners’
	Amount		Market Value		Capital
Cash Equivalents
United States Treasury Obligations
U.S. Treasury Bills:
5.32%, 7/02/2024	$	6,000,000	$	5,999,128	3.26
5.29%, 7/05/2024		3,000,000		2,998,267	1.63
5.34%, 7/09/2024		3,000,000		2,996,503	1.63
5.29%, 7/11/2024		7,000,000		6,989,831	3.80
5.35%, 7/16/2024		6,000,000		5,986,862	3.26
5.37%, 7/23/2024		6,000,000		5,980,695	3.25
5.30%, 7/25/2024		5,000,000		4,982,517	2.71
5.36%, 7/30/2024		3,000,000		2,987,300	1.62
5.29%, 8/08/2024		5,000,000		4,972,397	2.70
5.29%, 8/15/2024		5,000,000		4,967,313	2.70
5.29%, 8/22/2024		6,000,000		5,954,587	3.24
5.30%, 8/29/2024		5,000,000		4,957,020	2.70
5.29%, 9/05/2024		2,000,000		1,980,823	1.08
Total United States Treasury Obligations				61,753,243	33.58
United States Money Market Funds
Dreyfus Institutional Preferred Government Money Market Fund - Institutional Shares, 5.27%#		50,200,000		50,200,000	27.30
RBC U.S. Government Money Market Fund - Institutional Shares, 5.23%#		18,600,000		18,600,000	10.11
Total United States Money Market Funds				68,800,000	37.41
Total Cash Equivalents			$	130,553,243	70.99

*	Collateral amounted to $16,249,999 on open commodity futures contracts.

**	All short contracts are offset by long positions in Commodity Futures Contracts and are acquired solely for the purpose of reducing a long position (e.g., due to a redemption or to reflect a rebalancing of the SDCI).

#	Reflects the 7-day yield at June 30, 2024.

See accompanying notes to condensed financial statements.

Table of Contents

United States Commodity Index Funds Trust

Schedule of Investments

At December 31, 2023

United States Commodity Index Fund


				Fair
				Value/Unrealized
				Gain (Loss) on
				Open
			Number of	Commodity		% of Partners’
	Notional Amount		Contracts	Contracts		Capital
Open Commodity Futures Contracts - Long
United States Contracts
NYMEX Natural Gas Futures NG March 2024 contracts, expiring February 2024	$	12,234,110	529	$	75,720	0.05
CME Live Cattle Futures LC February 2024 contracts, expiring February 2024		12,319,030	182		(52,230)	(0.03)
ICE Cocoa Futures CC March 2024 contracts, expiring March 2024		12,018,720	284		(102,080)	(0.06)
CBOT Soybean Oil Futures BO March 2024 contracts, expiring March 2024		13,009,224	417		(954,588)	(0.56)
CBOT Soybean Futures S March 2024 contracts, expiring March 2024		12,337,075	188		(135,875)	(0.08)
CBOT Soybean Meal Futures SM March 2024 contracts, expiring March 2024		13,045,080	313		(963,280)	(0.57)
ICE Coffee Futures KC March 2024 contracts, expiring March 2024		10,218,713	169		1,714,800	1.01
COMEX Copper Futures HG March 2024 contracts, expiring March 2024		11,597,812	126		657,263	0.39
NYMEX NY Harbour ULSD Futures HO April 2024 contracts, expiring March 2024		12,075,273	115		(236,943)	(0.14)
COMEX Gold 100 OZ Futures GC April 2024 contracts, expiring April 2024		12,386,220	59		(44,600)	(0.03)
ICE Sugar #11 Futures SB May 2024 contracts, expiring April 2024		14,783,563	538		(2,479,287)	(1.47)
NYMEX WTI Crude Oil Futures CL October 2024 contracts, expiring September 2024		12,633,382	169		(637,762)	(0.38)
United Kingdom Contracts
ICE Low Sulphur Gasoil Futures QS February 2024 contracts, expiring February 2024		12,014,425	157		(361,100)	(0.21)
ICE Brent Crude Futures CO November 2024 contracts, expiring September 2024		12,616,630	160		(571,830)	(0.34)
Foreign Contracts
LME Lead Futures LL January 2024 contracts, expiring January 2024^*		13,170,786	246		(598,649)	(0.36)
LME Zinc Futures LX January 2024 contracts, expiring January 2024^*		26,874,701	434		1,801,849	1.07
Open Commodity Futures Contracts - Short^**
Foreign Contracts
LME Lead Futures LL January 2024 contracts, expiring January 2024^*		(12,667,814)	246		95,676	0.05
LME Zinc Futures LX January 2024 contracts, expiring January 2024^*		(28,164,386)	434		(512,164)	(0.30)
Total Open Futures Contracts^*	$	172,502,544	4,766	$	(3,305,080)	(1.96)

See accompanying notes to condensed financial statements.

Table of Contents

United States Commodity Index Funds Trust

Schedule of Investments

At December 31, 2023

United States Commodity Index Fund


	Shares/Principal				% of Partners’
	Amount		Market Value		Capital
Cash Equivalents
United States Treasury Obligations
U.S. Treasury Bills:
5.40%, 1/02/2024	$	7,000,000	$	6,998,968	4.14
5.43%, 1/23/2024		8,000,000		7,973,927	4.72
5.39%, 2/08/2024		4,000,000		3,977,770	2.36
5.30%, 2/15/2024		5,000,000		4,967,219	2.94
5.30%, 2/29/2024		5,000,000		4,957,061	2.93
5.23%, 3/12/2024		4,000,000		3,958,426	2.34
5.21%, 3/26/2024		7,000,000		6,913,147	4.09
5.28%, 3/28/2024		3,000,000		2,962,118	1.75
Total United States Treasury Obligations				42,708,636	25.27

United States Money Market Funds
Dreyfus Institutional Preferred Government Money Market Fund - Institutional Shares, 5.32%^#		55,800,000		55,800,000	33.01
Total United States Money Market Funds				55,800,000	33.01
Total Cash Equivalents			$	98,508,636	58.28

#	Reflects the 7-day yield at December 31, 2023.

*	Collateral amounted to $13,041,505 on open commodity futures contracts.

**	All short contracts are offset by long positions in Commodity Futures Contracts and are acquired solely for the purpose of reducing a long position (e.g., due to a redemption or to reflect a rebalancing of the SDCI).

See accompanying notes to condensed financial statements.

Table of Contents

United States Commodity Index Funds Trust

Condensed Schedule of Investments (Unaudited)

At June 30, 2024

United States Copper Index Fund


				Fair
				Value/Unrealized
				Gain (Loss) on
				Open
			Number of	Commodity		% of Partners’
	Notional Amount		Contracts	Contracts		Capital
Open Commodity Futures Contracts - Long
United States Contracts
COMEX Copper Futures HG September 2024 contracts, expiring September 2024	$	73,351,438	658	$	(1,111,263)	(0.51)
COMEX Copper Futures HG December 2024 contracts, expiring December 2024		73,357,113	656		(1,016,713)	(0.47)
COMEX Copper Futures HG March 2025 contracts, expiring March 2025		73,323,888	653		(938,838)	(0.43)
Total Open Futures Contracts^*	$	220,032,438	1,967	$	(3,066,813)	(1.41)


	Shares/Principal				% of Partners’
	Amount		Market Value		Capital
Cash Equivalents
United States Treasury Obligations
U.S. Treasury Bills:
5.32%, 7/02/2024	$	9,000,000	$	8,998,693	4.15
5.29%, 7/05/2024		3,000,000		2,998,267	1.38
5.34%, 7/09/2024		4,000,000		3,995,338	1.84
5.29%, 7/11/2024		8,000,000		7,988,378	3.68
5.35%, 7/16/2024		10,000,000		9,978,104	4.60
5.37%, 7/23/2024		5,000,000		4,983,912	2.30
5.30%, 7/25/2024		7,000,000		6,975,523	3.21
5.36%, 7/30/2024

United States Commodity Index Funds Trust [CPER] Filings
United States Commodity Index Funds Trust [USCI] Filings
10-Q	[2024-08-08]
10-Q	[2024-05-09]
10-K	[2024-02-29]
10-Q	[2023-11-07]
10-Q	[2023-08-04]
10-Q	[2023-05-08]
10-K	[2023-02-27]
10-Q	[2022-11-07]
10-Q	[2022-08-05]
10-Q	[2022-05-06]
10-K	[2022-02-25]
10-Q	[2021-11-05]
10-Q	[2021-08-06]
10-Q	[2021-05-07]
10-K	[2021-02-26]
10-Q	[2020-11-06]
10-Q	[2020-08-07]
10-Q	[2020-05-08]
10-K	[2020-03-13]
S-1	[2020-03-13]
10-Q	[2019-11-08]
10-Q	[2019-08-08]
10-Q	[2019-05-09]
S-1	[2019-05-09]
10-K	[2019-02-28]
10-Q	[2018-11-08]
10-Q	[2018-08-08]
10-Q	[2018-05-10]
10-K	[2018-03-14]
10-Q	[2017-11-06]
10-Q	[2017-08-07]
10-Q	[2017-05-05]
S-1	[2017-03-20]
S-1	[2017-03-20]
10-K	[2017-03-10]
10-Q	[2016-11-07]
10-Q	[2016-08-05]
S-1	[2016-06-16]
10-Q	[2016-05-04]
10-K	[2016-03-11]
10-Q	[2015-11-06]
10-Q	[2015-08-05]
10-Q	[2015-05-07]
10-K	[2015-03-16]
10-Q	[2014-11-10]
10-Q	[2014-08-11]
10-Q	[2014-05-12]
S-1	[2014-04-03]
S-1	[2014-04-03]
S-1	[2014-04-03]
10-K	[2014-03-10]
10-Q	[2013-11-12]
10-Q	[2013-08-09]
10-Q	[2013-05-10]
10-K	[2013-03-13]
10-Q	[2012-11-09]
10-Q	[2012-08-09]
10-Q	[2012-05-10]
10-K	[2012-03-15]

United States Commodity Index Funds Trust [CPER] Filings

United States Commodity Index Funds Trust [USCI] Filings