USCF Sustainable Battery Metals Strategy Fund (ZSB)

What this ETF is trying to do

The USCF Sustainable Battery Metals Strategy Fund (ZSB) is an ETF listed on the NYSE. Based on its name and holdings, it focuses on metals used in sustainable battery technologies. Its portfolio includes various companies involved in materials like rare earths and lithium, alongside cash reserves and commodity holdings.

What the numbers show

The current price of ZSB is $21.61. To understand how the fund has performed, we look at two different types of returns: price return (the change in the share price) and total return (which includes both price changes and distributions).

• Year-to-Date (YTD): The YTD price return is approximately 2.51%. For this fund, the YTD total return is also 2.51%.

• One Year: The one-year price return was approximately 36.89%. When including distributions, the one-year total return was higher, at approximately 38.20%.

• Three Year: The three-year price return was approximately 12.00%, while the three-year total return was approximately 20.56%.

To visualize the price change, we can look at an estimated price from roughly one year ago, which was $15.79. If you had invested in the share price alone, your investment would have grown from that estimated starting point to the current price.

Income and distribution explanation

This ETF provides some cash income through distributions. The distribution yield is approximately 0.89%. It is important to remember that a distribution yield tells you how much cash was paid out relative to the price, but it is not the same as your total return.

Distributions for this fund are described as "irregular" or "less frequent," with one payout recorded in the last 12 months.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes signal erosion, it is not proof of it. For ZSB, the erosion-risk score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this fund.

Top Holdings

The following are the top holdings in the fund (note that this list is partial):

• BNY Cash Reserve: 61.50%

• USCF Cayman Commodity 5: 25.49%

• MP Materials Corp Ordinary Shares Class A: 2.12%

• Lynas Rare Earths Ltd: 1.40%

• Elkem ASA Ordinary Shares: 1.37%

• SGL Carbon SE: 1.12%

• Graftech International Ltd: 0.99%

• Albemarle Corp: 0.80%

*Holdings can change over time.*

Pros

• The fund has shown a strong one-year total return of approximately 38.20%.

• The erosion-risk measurement is rated as "good."

Cons

• Distributions are irregular and less frequent.

• The fund's holdings are concentrated, with a large portion in cash reserves and commodities.

Beginner takeaway

When looking at ZSB, it is helpful to distinguish between the share price movement and the total return. This fund has seen significant price growth over the last year, and its total return is even higher because it includes distributions. Always remember that a distribution yield shows cash paid out, but it does not guarantee the stability of your original investment.