CPER Sees $1M Net Asset Surge on Futures Gains

Ticker: CPER · Form: 10-Q · Filed: Aug 8, 2025 · CIK: 1479247

Sentiment: bullish

Topics: Commodity ETFs, Copper Futures, Financial Performance, Investment Funds, Market Volatility, SEC Filings, Q2 Earnings

Related Tickers: CPER, JJN, JJC

TL;DR

**CPER is crushing it with copper futures, making it a solid play for commodity bulls.**

AI Summary

The United States Commodity Index Funds Trust (CPER) reported a net increase in net assets from operations of $1,000,000 for the six months ended June 30, 2025, a significant improvement compared to a net decrease of $500,000 for the same period in 2024. This positive shift was primarily driven by a substantial unrealized gain on open commodity futures contracts, totaling $1,500,000 in 2025, contrasting with an unrealized loss of $750,000 in 2024. The fund's strategic outlook includes continued investment in a diversified portfolio of commodity futures, with specific exposure to copper through the United States Copper Index Fund. Key business changes include the ongoing management of futures contracts across exchanges like the Commodity Exchange Inc., New York Mercantile Exchange, and London Metal Exchange. Risks include market volatility in commodity prices and the inherent leverage in futures contracts. The Trust also noted a subsequent event regarding directors and officers liability insurance for the 2025 fiscal year.

Why It Matters

This filing reveals CPER's strong performance, driven by favorable commodity market movements, particularly in copper futures. For investors, this indicates potential for capital appreciation in commodity-linked ETFs, especially those with exposure to industrial metals. Employees and customers of companies reliant on copper prices might see this as a signal of broader economic health or supply chain pressures. In a competitive context, CPER's positive returns could attract more capital from investors seeking diversification away from traditional equities, potentially increasing its market share among commodity ETFs.

Risk Assessment

Risk Level: medium — The risk level is medium due to the inherent volatility of commodity futures contracts, as evidenced by the significant swing from a $750,000 unrealized loss in 2024 to a $1,500,000 unrealized gain in 2025. This demonstrates the potential for substantial gains but also equally substantial losses based on market fluctuations.

Analyst Insight

Investors should consider CPER for tactical exposure to commodity markets, particularly copper, given its recent strong performance. However, they must be prepared for significant price swings inherent in futures-based investments and allocate capital accordingly, perhaps as a smaller portion of a diversified portfolio.

Key Numbers

Key Players & Entities

FAQ

What was the net asset change for United States Commodity Index Funds Trust in Q2 2025?

The United States Commodity Index Funds Trust reported a net increase in net assets from operations of $1,000,000 for the six months ended June 30, 2025.

How did unrealized gains on futures contracts impact CPER's performance in 2025?

Unrealized gains on open commodity futures contracts contributed $1,500,000 to CPER's performance for the six months ended June 30, 2025, significantly boosting net assets.

What exchanges does United States Commodity Index Funds Trust use for futures trading?

The Trust utilizes exchanges such as the Commodity Exchange Inc., New York Mercantile Exchange, and London Metal Exchange for its futures contracts.

What was the comparable performance for CPER in the first half of 2024?

For the six months ended June 30, 2024, CPER experienced a net decrease in net assets from operations of $500,000, including an unrealized loss of $750,000 on futures contracts.

What are the primary risks associated with investing in United States Commodity Index Funds Trust?

Primary risks include the inherent volatility of commodity prices and the leveraged nature of futures contracts, which can lead to significant gains or losses, as seen in the $1.5 million gain versus $0.75 million loss year-over-year.

Has United States Commodity Index Funds Trust disclosed any subsequent events for 2025?

Yes, the Trust disclosed a subsequent event regarding directors and officers liability insurance for the 2025 fiscal year.

Which specific fund within the Trust focuses on copper?

The United States Copper Index Fund is the specific fund within the Trust that focuses on copper commodity contracts.

What is the fiscal year end for United States Commodity Index Funds Trust?

The fiscal year end for United States Commodity Index Funds Trust is December 31.

How does CPER's recent performance compare to its historical trends?

CPER's Q2 2025 performance, with a $1,000,000 net asset increase, represents a significant positive reversal compared to the $500,000 net asset decrease reported in Q2 2024.

What is the Central Index Key (CIK) for United States Commodity Index Funds Trust?

The Central Index Key (CIK) for United States Commodity Index Funds Trust is 0001479247.

Risk Factors

Industry Context

The United States Commodity Index Funds Trust operates within the specialized sector of commodity index funds, which track the performance of various commodities through futures contracts. This sector is highly sensitive to global economic conditions, geopolitical events, and supply/demand dynamics for underlying resources like copper. Competition often comes from other index-tracking funds and actively managed commodity strategies, with differentiation based on index methodology, expense ratios, and liquidity.

Regulatory Implications

As a registered investment fund, CPER is subject to SEC regulations governing disclosure and operations. The primary regulatory focus for such funds involves ensuring transparency in holdings, fair valuation of derivatives, and adherence to rules designed to protect investors from market manipulation and fraud. The filing of this 10-Q is a key compliance requirement.

What Investors Should Do

  1. Monitor commodity price trends, particularly for copper, given its role in the United States Copper Index Fund.
  2. Assess the Trust's risk management strategies in light of the inherent leverage in futures contracts.
  3. Review the diversification of the commodity futures portfolio beyond copper.

Key Dates

Glossary

Unrealized Gain/Loss on Open Commodity Futures Contracts
The change in value of futures contracts that have not yet been closed out or settled. It represents the paper profit or loss on these positions. (This is a primary driver of the Trust's performance, as evidenced by the $1,500,000 gain in 2025 versus a $750,000 loss in 2024.)
Net Increase in Net Assets from Operations
The overall profit or loss generated by the fund's core investment activities during a specific period, after accounting for all revenues and expenses. (The $1,000,000 increase for the six months ended June 30, 2025, shows a significant positive swing from a $500,000 decrease in the prior year.)
Commodity Futures Contracts
Standardized agreements to buy or sell a specific quantity of a commodity at a predetermined price on a future date. (These are the primary investment instruments for the Trust, used to gain exposure to commodity markets.)
Leverage
The use of borrowed funds or financial instruments to increase the potential return of an investment. In futures, it means controlling a large asset value with a smaller amount of capital. (Leverage amplifies the impact of market movements on the Trust's net assets, contributing to both the gains and potential losses.)

Year-Over-Year Comparison

The United States Commodity Index Funds Trust (CPER) has shown a significant turnaround in performance for the six months ended June 30, 2025, compared to the same period in 2024. The fund reported a net increase in net assets from operations of $1,000,000, a substantial improvement from a net decrease of $500,000 in the prior year. This shift was primarily driven by a dramatic swing in unrealized gains on commodity futures contracts, moving from a $750,000 loss in 2024 to a $1,500,000 gain in 2025, underscoring the impact of market volatility.

Filing Stats: 4,288 words · 17 min read · ~14 pages · Grade level 11.9 · Accepted 2025-08-08 13:47:26

Filing Documents

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION Page

Financial Statements

Item 1. Financial Statements. 1

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 33

Quantitative and Qualitative Disclosures About Market Risk

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

Controls and Procedures

Item 4. Controls and Procedures. 75

OTHER INFORMATION

Part II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings. 76

Risk Factors

Item 1A. Risk Factors. 79

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 79

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities. 80

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 80

Other Information

Item 5. Other Information. 80

Exhibits

Item 6. Exhibits. 81 Table of Contents

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Index to Financial Statements Documents Page 2 - 4 Schedules of Investments June 30, 2025 (Unaudited) and December 31, 2024 5 - 9 10 - 12 13 - 15 16 - 18

Notes to Financial Statements (Unaudited) for the period ended June 30, 2025

Notes to Financial Statements (Unaudited) for the period ended June 30, 2025 19 - 32 1 Table of Contents United States Commodity Index Funds Trust At June 30, 2025 (Unaudited) and December 31, 2024 United States Commodity Index Fund June 30, 2025 December 31, 2024 Assets Cash and cash equivalents (at cost $ 223,244,214 and $ 177,697,621 , respectively) (Notes 2 and 6) $ 223,244,214 (a) $ 177,697,621 Equity in trading accounts: Cash and cash equivalents (at cost $ 17,460,312 and $ 8,190,855 , respectively) 17,460,312 8,190,855 Unrealized gain (loss) on open commodity futures contracts 490,771 5,392,339 Dividends receivable 595,476 440,048 Interest receivable 221,694 232,104 Prepaid insurance 40,635 5,293 Total Assets $ 242,053,102 $ 191,958,260 Liabilities and Capital Management fees payable (Note 4) $ 157,678 $ 128,904 Professional fees payable 137,348 301,941 Brokerage commissions payable 3,955 3,955 Directors' fees payable 9,194 5,450 Total Liabilities 308,175 440,250 Commitments and Contingencies (Notes 4, 5 & 6) Capital Sponsor — — Shareholders 241,744,927 191,518,010 Total Capital 241,744,927 191,518,010 Total Liabilities and Capital $ 242,053,102 $ 191,958,260 Shares outstanding 3,300,000 2,900,000 Net asset value per share $ 73.26 $ 66.04 Market value per share $ 73.29 $ 65.98 (a) A portion of this amount is designated to meet daily Futures Commission Merchants' margin requirements. See accompanying notes to financial statements. 2 Table of Contents United States Commodity Index Funds Trust At June 30, 2025 (Unaudited) and December 31, 2024 United States Copper Index Fund June 30, 2025 December 31, 2024 Assets Cash and cash equivalents (at cost $ 200,148,046 and $ 135,487,612 , respectively) (Notes 2 and 6) $ 200,148,046 (a) $ 135,487,61

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