What's been Driving Commodities' Growth in 2025

as a group.

Uh commodities continue to be top performers this year, beating stocks, bonds, and global real estate.

Um it's also lifted the performance of the USCF Summer Haven Dynamic Commodity Strategy ETF, uh no K1 Fund, and that ticker is SDCI.

So, the fund has also garnered an impressive five-star rating from Morning Star. and what has been driving SDCI's gains and what type of investor might SDCI appeal to? >> Uh, since 2020, uh, a couple things have been going on.

One, there's just individual stories within commodity baskets such as cocoa last year that, uh, people don't think about cocoa, they think about crude oil and and um, co maybe coffee, but they don't think about or copper, I mean, but they don't think about these smaller commodities.

And there's a lot of supply demand uh, individual stories there. that drives commodities but also as a whole couple other things inflation uh has been higher and than it was in the past and uh in addition to that um just some other uh I'm sorry the US dollar has also been a major factor the dollar is generally uh got a negative correlation to commodities because commodities priced in dollars you can almost think of it as an exchange rate that creates more demand uh for commodities priced in dollars when the dollar is lower.

So that has uh aided commodities as well.

And then just there's a shortage of some things relative to to need and that uh continues to be the case.

So that's driving commodities in terms of who SDCI might appeal to.

Um I mean obviously you know you have to look at it uh whether it's suitable for your portfolio by yourself or with your financial advisor.

But I think it it's worth being cons everyone considering at least for two reasons.

One, it provides diversification from stocks and bonds.

And people are really looking for that right now.

We're getting more calls than we ever have because people are looking for an alternative to stocks and bonds with stocks being so elevated and interest rates uh uh being where they are uh and and looking at 2022 when both stocks and bonds uh decline simultaneously, people recognize that maybe some other forms of diversification are beneficial.

On top of that, um, commodities, people tend to look at commodities and think, "Oh, they're they're risky.

They're very volatile, but they they over the long term, a basket, a commodity basket tends to have, uh, risk about equal to stocks and bonds, I'm sorry, to to stocks.

So, uh, it's not necessarily as risky as people think. individual commodities.

Yes, just like an individual stock, something happens to a company, something happens to a commodity, you can have uh big big changes in the commodity price.

But as a basket, we tend to see volatility that's comparable to stock indices over time.