Morningstar Rating

ETF Research and Analysis

by Abby Woodham
Suitability
United States Commodity Index USCI tracks an equally weighted index of 14 commodity futures contracts that rebalances monthly using market price signals. The fund's methodology is based on research by academics Geert Rouwenhorst   Read more 

Bull Case

USCI's index methodology is supported by academic studies.
Commodities are a good inflation hedge.
Commodities offer significant portfolio diversification benefits because they are not correlated with equities and fixed income. Read more 

Bear Case

USCI is the most expensive of its peer group.
Commodities are volatile and some studies show that their expected return over the risk-free rate is close to zero.
In the past, commodities had low correlations to stocks, but correlations have risen significantly since the 2008 financial crisis. Read more 

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Stalled Financials Offer a Bit of Value 
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