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Shell Midstream Partners Plan to Spend $800 Million to Boost Stakes in Explorer, Colonial Pipelines

9:49 AM, May 13, 2019 — Shell Midstream Partners (SHLX) said on Monday it will spend $800 million to bolster stakes in two US pipeline companies.

Houston-based Shell Midstream said it would buy Royal Dutch Shell’s (RDS.A) 25.97% stake in Explorer Pipeline Co. and a 10.125% interest in Colonial Pipeline Co. The investments will increase its stakes in Explorer to 38.59% and Colonial to 16.125%, the company said.

The company’s shares were higher in pre-market trading before declining after the open amid a wider selloff. Shell was trading 0.9% stronger early in the regular session.

“This acquisition is evidence of our strategy in action — we will continue to build scale with diversified assets that provide robust, reliable cash flows,” Shell Midstream Partners Chief Executive Kevin Nichols said. “The Explorer and Colonial systems have the capacity to deliver some three million barrels per day of refined products, providing energy to key demand centers of the United States.”

The acquisitions are expected to close in the second quarter, Shell Midstream said.

Tulsa-based Explorer delivers petroleum products to more than 70 big cities in 16 states via an 1,800-mile pipeline which has a capacity of 660,000 barrels per day. Colonial, based in suburban Atlanta, supplies nearly 50% of the refined products consumed on the East Coast through its Houston-to-New York pipeline.

Explorer is owned by Royal Dutch Shell, Phillips 66 (PSX), Sunoco’s (SUN) Sunoco Logistics business and Marathon OIl (MRO). Colonial’s owners include CDPQ Colonial Partners, IFM (US) Colonial Pipeline 2, KKR-Keats Pipeline Investors, Koch Capital Investments Co., Shell Pipeline Co., and Shell Midstream Operating.

Companies: Shell Midstream Partners, L.P.
Price: 21.50 Price Change: +1.31 Percent Change: +6.49

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Stamps.com’s Shares Lower Following Reductions in Full Year Sales, Earnings Estimates

7:10 AM, May 9, 2019 — Shares of Stamps.com (STMP) plunged in early trade on Thursday after the company lowered its full year guidance amid an evolution of its corporate strategy and as investors side-stepped better-than-expected results in the first quarter.

Stamps.com’s sales of $136.0 million during the three months ended March 31 were higher than $133.6 million a year ago and also above the $126.1 million average analyst estimate compiled by Capital IQ. The increase was due in part to a 30% surge in turnover at the customized postage segment.

While adjusted earnings fell to $1.23 a share from $2.54 a share a year earlier, it still managed to beat the $1.07 per share market consensus.

“During the first quarter we continued to make progress on our efforts to evolve our strategy to more fully embrace a global multi-carrier business model,” Chief Executive Officer Ken McBride said in the statement. “Our financial results for the first quarter were in-line with our expectations, in light of our new strategic direction.”

Looking ahead, Stamps.com now sees full year 2019 revenue in a range of about $510 million to $560 million, below its previous forecast of $540 million to $570 million but in line with the $555 million Street’s view. In line with the cut in sales outlook, the company is also projecting adjusted earnings per share of $3.35 to $4.85, notably lagging both a prior estimate for $5.15 to $6.15 and market consensus of $5.43 per share.

The company said its first-quarter effective rate of 30.0% shouldn’t be assumed to apply for 2019 as a whole, and the after-tax income during the remainder of 2019 would likely reflect a materially higher rate than was reflected in after-tax results for the first quarter.

Shares of the company nosedived by more than 47.5% in early trade on Thursday.

Companies: Stamps.com Inc.
Price: 43.50 Price Change: -39.89 Percent Change: -47.84

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Lyft’s Ridership Data to Be Analyst Focus as Company Issues First Quarterly Earnings Since IPO

2:24 PM, May 7, 2019 — Lyft (LYFT) will release its first quarterly earnings report after the ridesharing company went public in late March, and analysts are looking for signs that could stabilize its sagging stock price.

San Francisco-based Lyft’s shares began trading on March 28 at an initial price of $72 each. The stock has been well below that level in the weeks since, and were at $60.08 in early afternoon trading on Tuesday.

Canaccord Genuity said in a note that it expects the market to look closely at Lyft’s strategy and core message to investors, a guide path on active rider growth and engagement and remarks about the industry landscape after “sizeable market share gains” made during 2017 to 2018. The firm has a buy rating and a $75 price target on Lyft.

But Wedbush Securities last week cut its price target to $67 from $80 a share.

“Let’s not sugarcoat it, Lyft’s stock has been a head-scratching train wreck since the IPO and is still down ~15% since coming out of the box with other key tech IPOs (Pinterest, Zoom) showing a very strong performance thus far in the eyes of tech investors,” Wedbush said in a note last week.

The firm said Lyft as a “major opportunity” to begin to build credibility with investors as it tries to capitalize on a $1.2 trillion market for ridesharing in the coming years. Wedbush lowered its view on Lyft’s revenue to $743 million from $757 million, but that’s still ahead of the Capital IQ consensus of $737.9 million. Meanwhile, Capital IQ expects Lyft to report a loss of $1.07 per share.

Canaccord expects active rider growth of 40% year on year and growth of 10% for bookings per active rider. It also sees “a modest increase in revenue as a percent of bookings (29.1% versus 28.7% in 4Q) driving total y/y revenue growth of 87.5%,” adding that it expects adjusted earnings before interest, tax, depreciation and amortization margin of minus 33.7%.

Canaccord also said it would be looking on cost-cutting opportunities, especially relating to insurance as well as an update on Lyft’s bike and scooter deployment.

Companies: Lyft

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Pet Food Retailer Chewy Files Paperwork for Initial Public Offering; Sees Losses Continuing Amid Growth

3:23 PM, Apr 29, 2019 — Chewy, the online pet-food retailer that’s owned by closely held PetSmart, filed paperwork on Monday to launch an initial public offering.

The Dania Beach, Fla.-based company set a placeholder $100 million aggregate offering price in the filing with the Securities and Exchange Commission. Chewy plans to list its shares under the ticker symbol CHWY.

The company plans to use the IPO’s proceeds for working capital and general corporate purposes, according to the filing. Class A common shares will have one vote each while each Class B share will have 10 votes, Chewy said in the filing. Neither a timeframe nor pricing for the offer were disclosed.

Chewy reported a $267.9 million net loss in fiscal 2018 on sales of $3.53 billion, the filing said. Other loss-making companies that have gone public this year include Pinterest (PINS) and Lyft (LYFT).

“We have a history of losses and expect to generate operating losses as we continue to expand our business,” Chewy said in its filing.

PetSmart, owned by private-equity firm Argos Holdings, acquired Chewy for $3 billion in 2017. The Phoenix-based retailer then transferred Chewy shares to separate entities in 2018, which resulted in a lawsuit from the lenders of PetSmart’s private-equity owners, Bloomberg reported.

The lenders said PetSmart was insolvent when the transfer was made, and it was fraudulent. PetSmart earlier this month received approval from more than half of its lenders to retroactively back the transfer.

CapRe, which owns $600 million of PetSmart bonds and $80 million in term loans from the retailer, is seeking to continue its lawsuit over the transfer, Bloomberg said in April.

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Intel Shares Slump as ‘Cautious’ 2019 View Leads to Cut in Full-Year Earnings & Revenue Guidance

7:53 AM, Apr 26, 2019 — Shares of Intel (INTC) dropped in pre-market trading on Friday after the company cut its full-year guidance and second-quarter earnings and revenue forecasts notably lagged the market consensus.

Revenue was flat year-on-year at $16.10 billion during the three months that ended March 30, beating the $16.03 billion average analyst estimate compiled by Capital IQ. Intel said in its earnings statement late on Thursday that a 21% plunge in enterprise and government unit sales led to a drop in turnover at the firm’s data-centric business, outweighing a 4% jump in its PC-focused sales.

Adjusted earnings per share rose to $0.89 from $0.87 a year ago, outpacing the Street’s guidance for $0.87 a share.

For the full-year 2019, Intel now expects revenue of $69 billion on earnings of $4.35 per share, versus projections in a Jan. 24 earnings statement of $71.5 billion in sales and $4.60 of earnings. Furthermore, the firm sees second-quarter sales of $15.6 billion and earnings of $0.89 per share, against a market consensus of $16.88 billion in turnover and $1.02 in earnings.

“Looking ahead, we’re taking a more cautious view of the year, although we expect market conditions to improve in the second half,” said Bob Swan, Intel chief executive officer, said in the statement. “Our team is focused on expanding our market opportunity, accelerating our innovation and improving execution.”

Shares of Intel slumped by 7.7% in pre-market trading.

Companies: Intel Corporation
Price: 53.19 Price Change: -4.42 Percent Change: -7.67

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Southwest Airlines First-Quarter Results Beats Expectations Despite Boeing 737 MAX Groundings

12:18 PM, Apr 25, 2019 — Southwest Airlines (LUV) unveiled guidance for its second quarter on Thursday as it posted better-than-expected results for its first quarter despite the impact of Boeing 737 MAX aircraft being grounded, unscheduled maintenance and severe weather.

The Dallas, Texas-headquartered company posted total operating revenue of $5.15 billion in the three months ended March 31, up 4.1% from the prior-year quarter. This was ahead of the consensus estimate of analysts polled by Capital IQ for $5.14 billion.

The bulk of revenue came from the passenger business, which had $4.75 billion, up 3.5% from a year earlier. Freight revenue was unchanged year-on-year at $42 million and other revenue was 14.2% higher at $362 million.

The results were supported by an increase in passenger revenue miles to 30.7 million, up 0.9% from the corresponding quarter of the prior year. Available seat miles were up 1.4% to 37.9 million and the volumes of trips rose by 0.1% to 326,390.

However, several headwinds contributed to a negative revenue impact of more than $200 million, including the grounding of Boeing 737 MAX aircraft, unscheduled maintenance disruptions, severe winter weather, the US government shutdown, and softer leisure revenue trends, the company said.

First quarter 2019 operating revenue per available seat mile increased 2.7%, driven largely by a passenger revenue yield increase of 2.6%, offset slightly by a load factor decline of one-half point, year-over-year, to 81.0%.

Adjusted earnings per share came in at $0.70, down from $0.75 a year earlier, but above the Street’s forecast for $0.62.

“Our first quarter 2019 net income was solid despite unexpected headwinds significantly impacting our performance,” Gary Kelly, chief executive of Southwest Airlines, said. “Our People were tasked with minimizing disruptions for our customers due to more than 10,000 flight cancellations arising from the grounding of the Boeing 737 MAX 8 aircraft, unscheduled maintenance disruptions in connection with efforts to reach a tentative agreement with the Aircraft Mechanics Fraternal Association, and severe winter weather.”

The company is targeting second quarter 2019 revenue per available seat mile to increase by between 5.5% and 7.5%, compared with the second quarter of 2018.

Companies: Southwest Airlines Company
Price: 54.46 Price Change: +1.53 Percent Change: +2.89

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Weekly Commodities ETF Report: Crude Ends Higher on Tighter Supplies; Gold Slips Lower as Positive China Data Helps Ease Global Growth Worries

(MT Newswires) – Crude ended Friday’s session higher, hitting $64 a barrel early in the week, on expectations for tighter supplies amid continued fighting in Libya, tighter US sanctions on Venezuela, and sharply lower oil production from the Organization of the Petroleum Exporting Countries (OPEC). Forces under Libya’s UN-backed government said Sunday they had started a counter-attack against the forces of Khalifa Haftar after he launched an offensive to seize Tripoli, escalating an ongoing power struggle in the oil-rich country. Meanwhile, the US Treasury Department imposed sanctions on two companies operating in Venezuela’s oil sector, in a move announced on Friday. The measures appeared designed to also hit at Cuba, which imports energy from the Latin American country. Finally, oil production from OPEC member countries and its allies fell by 534,000 barrels a day month-on-month, to average 30.02 million barrels a day in March.

Stockpiles of commercial crude in the US climbed more than expected at the beginning of the month, posting a third-straight weekly build, according to data from the Energy Information Administration. Inventories increased by seven million barrels in the week through April 5, reaching 456.5 million barrels and holding in line with the five-year average for this time of year. The build was greater than reports late Tuesday that showed the American Petroleum Institute was expecting an advance of 4.1 million barrels for crude in the week. And, energy services firm Baker Hughes (BHGE) reported Friday that the number of oil rigs operating in the US rose by two to 833, after jumping by 15 last week. The combined oil and gas rig count in the US, however, fell by three to 1,022 as gas rigs slid by five to 189.

Light, sweet crude oil for May delivery rose 0.85% for the week, settling at $63.89 per barrel at the end of Friday’s session. In other energy futures, gasoline was up 2.81% during the week and settling at $2.04 per gallon on Friday. Natural gas fell 0.97% on the week, closing Friday at $2.66 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) was 0.52% higher this week, compared with an increase of 1.62% in the previous week.

Gold wrapped up the Friday higher, but ended the week with modest losses of 0.12%, settling at $1,295.20. The yellow metal reached more than $1,300 an ounce on Wednesday following weakness in the US dollar ahead of the earnings season. This, however, reversed by Thursday, with gold prices sinking to a two-week low as upbeat economic data from China helped ease concerns over a slowdown in global growth, which in turn limited demand for haven metals. On Thursday, China said its consumer price index (CPI) in March rose 2.3% year-on-year —  just short of estimates but at the quickest pace since October 2018. Meanwhile, the producer price inflation (PPI) rose 0.4% on-year in March in line with expectations. And on Friday, China reported that its exports for the month of March rose sharply by 14.2% year over year, beating expectations, while imports witnessed an on-year decline of 7.6%, below estimates. The March trade surplus was $32.64 billion. Meanwhile, the same data helped lift industrial metals like copper, as traders deemed the data indicative of increased demand from China. Copper closed Friday’s session at $2.95 per pound, up 1.82% for the week.

In agriculture commodities, grains ended the week lower: corn fell 0.35% in the week and settled at $3.61 per bushel in Friday’s session; wheat slipped 0.69% and settled at $4.65 per bushel at the end of Friday’s session; and soybeans declined 0.39% for the week, and closed Friday at $8.95 per bushel. Other commodities were also in the negative: sugar had a weekly decline of 0.16% and settled at a price of $1.28 per pound on Friday; coffee was around $0.90 per pound at Friday’s close, down 3.17% for the week; and cocoa was down 0.04% for the week and closed Friday’s session at $2,407 per tonne.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) was up 0.06% for the week, compared with the prior week’s rise of 1.35%.

Copyright © 2019 MT Newswires, www.mtnewswires.com.

 

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:
USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHN, or CPER 

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

Please read the Prospectus carefully before investing.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc. 

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Waste Management to Acquire Advanced Disposal for $4.9 Billion

7:37 AM, Apr 15, 2019 — Waste Management (WM) has agreed to acquire Advanced Disposal Services (ADSW) in a deal worth approximately $4.9 billion as it seeks to grow its asset footprint in the Eastern half of the US.

The deal will see a subsidiary of Houston, Texas-headquartered Waste Management acquire all outstanding shares of Advanced Disposal for $33.15 per share in cash. It represents a total enterprise value of $4.9 billion when including approximately $1.9 billion of Advanced Disposal’s net debt.

Waste Management said that it expects the transaction to generate more than $100 million in annual cost and capital expenditure synergies. It said that the Advanced Disposal acquisition would be immediately accretive to Waste Management’s adjusted earnings per share and cash flow, with near-term benefits expected from core operating performance and selling,general and administrative cost savings.

“With this acquisition, we will grow our asset footprint to serve more customers and communities and generate significant growth and value creation opportunities for Waste Management’s shareholders and our combined company’s employee base,” Jim Fish, chief executive of Waste Management, said.

Advanced Disposal had revenues of $1.56 billion in 2018 and approximately 6,000 employees. It serves more than three million residential, commercial, and industrial customers, including over 800 municipalities primarily in 16 states in the Eastern half of the United States.

Price: 104.00 Price Change: +2.21 Percent Change: +2.17

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Snapchat Seen Losing Users in the US This Year After Unpopular App Redesign, eMarketer Says

1:58 PM, Apr 10, 2019 — Snap’s (SNAP) shares sank on Wednesday as industry research firm eMarketer projected a decline this year in Snapchat’s monthly US users, with the losses coming as its struggles in the wake of an unpopular redesign of the social-media company’s app.

Snapchat will have 77.5 million monthly US users this year, down 2.8% from last year and well below an earlier prediction that was calling for growth of 6.6% to 90.4 million users. Growth is expected to flatten in 2020, eMarketer said in a statement Wednesday.

“Many users didn’t like how Stories and chats were mixed together in a confusing redesign that went into effect in late 2017 and was broadly available by early 2018,” said Showmik Podder, a forecasting analyst at eMarketer. “The backlash was so severe that Snapchat was forced to scale back some of the changes just a few months later.”

Snapchat’s shares were down more than 5% in afternoon trading, stemming a four-day run of gains.

Pulling back the changes wasn’t enough to prevent this year’s dip, eMarketer said, and they forecast that between 2019 and 2023, Snapchat will add just 600,000 new US users.

The 2020 growth rate of 0.4% is seen remaining below that of general US social network usage of 2.4%. Rising competition is also taking some blame for Snapchat’s decline, with Facebook’s (FB) Instagram seen picking up many of the people who opt to leave.

“But the product launches the company announced last week, including an in-app gaming platform, may improve user engagement and time spent, particularly among its core young user base,” said Jasmine Enberg, a senior analyst. “Gaming also provides a new revenue stream for Snapchat that could boost its ad business in the future.”

Companies: Snap Inc.
Price: 11.76 Price Change: -0.59 Percent Change: -4.78

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Weekly Commodities ETF Report: Crude Logs Gains on Lower Output From Saudi Arabia, Venezuela; Gold Logs Losses Following Strong March Jobs Data

(MT Newswires) – Crude ended Friday’s session higher, as oil production cuts by Saudi Arabia and declines in Venezuelan output have worn away the balance in surplus that was posted in the fourth quarter of last year. Back home, stockpiles of commercial crude in the US posted a bigger jump than expected last week, growing for a second straight week and coming in line with the five-year average for this time of year, government data showed on Wednesday. Inventories, an indicator of crude production in the world’s biggest economy, rose by 7.2 million barrels in the week through March 29, to 449.5 million barrels, data from the Energy Information Administration showed. A week earlier, the stockpiles increased by 2.8 million barrels. The advance was greater than reports late Tuesday that showed the American Petroleum Institute was expecting an increase of 3 million barrels in the stockpiles. Finally, energy services firm Baker Hughes (BHGE) reported Friday that the average US rig count for March was 1,023, down 26 from the 1,049 counted in February, but up 34 from the 989 counted in March 2018.

Light, sweet crude oil for May delivery rose 5.15% for the week, settling at $63.08 per barrel at the end of Friday’s session. In other energy futures, gasoline was up 4.88% for the week, settling at $1.97 per gallon on Friday. Natural gas fell 0.11% this week at $2.66 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) was 1.62% higher this week, compared with a decline of 0.55% in the previous week.

Gold wrapped up the Friday session with gains, settling at $1,295.60 but closed the week down 0.1%.  Gold trended lower as equities turned positive, especially following the March employment report, which came in better than expected at 196,000 jobs, rebounding from 33,000 in the prior month. The total was above the 170,000 estimate pegged by Econoday. The jobless rate was unchanged at 3.8%, near a 50-year low. But fears of a global economic slowdown, as well as geopolitical events, like the UK’s attempts to exit from the European Union, have kept gold’s losses in check. Meanwhile, copper closed Friday’s session at $2.89 per pound, down 1.43% for the week, as reservations over the US-China trade deal remained, despite upbeat progress in negotiations between the two countries. Media reported that, before a meeting with Chinese Vice Premier Liu He, US President Donald Trump said a number of tough issues holding back a US-China trade deal had been resolved but differences remain. “Within the next four weeks or maybe less, maybe more, whatever it takes, something very monumental could be announced,” Trump was cited as saying.  Meanwhile, copper closed Friday’s session down at $2.89 per pound, falling 1.47% on the week.

In agriculture commodities, grains ended the week lower: corn rose 1.47% in the week and settled at $3.63 per bushel in Friday’s session; wheat climbed 1.85% and settled at $4.68 per bushel at the end of Friday’s session; and soybeans were up 1.67% for the week, and closed Friday in the red at $8.99 per bushel. Other commodities were mixed: sugar had a weekly increase of 1.76% and settled at a price of $1.28 per pound on Friday; coffee was around $0.93 per pound at Friday’s close, down 0.95% for the week; and cocoa was up 5.83% for the week and closed Friday’s session at $2,413 per tonne.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) was up 1.35% for the week, compared with the prior week’s decline of 1.83%.

 

Copyright © 2019 MT Newswires, www.mtnewswires.com.

 

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:
USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHN, or CPER  

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

Please read the Prospectus carefully before investing.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc. 

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