Fund Objectives & Key Features
UGA is a commodity pool organized as a Delaware limited partnership that issues units that may be purchased and sold on the NYSE Arca.
UGA's Objective
The investment objective of UGA is for the changes in percentage terms of the unit's net asset value to reflect the changes in percentage terms of the price of gasoline, as measured by the changes in the price of the futures contract on unleaded gasoline delivered to the New York harbor traded on the New York Mercantile Exchange that is the near month contract to expire, except when the near month contract is within two weeks of expiration, in which case it will be measured by the futures contract that is the next month contract to expire, less UGA's expenses.
UGA's Target
Gasoline is one of the most important physical commodities in the global economy. Gasoline futures are one of the most actively traded futures contracts and represent the primary US benchmark for gasoline prices.
UGA's Portfolio
The portfolio consists of listed gasoline futures contracts and other gasoline related futures, forwards and swap contracts. These investmentswill be collateralized by cash, cash equivalents and US government obligations with remaining maturities of two years or less.
UGA's Key Features
- United States Gasoline Fund, LP is an exchange traded security listed on NYSE Arca under the symbol UGA. The symbol for UGA's Indicative Intraday Fund ("IIF") Value is UGA.IV. The symbol for UGA's net asset value ("NAV") is UGA. The symbol for UGA's shares outstanding is UGA.SO.
- UGA's units will trade throughout the market day.
- Units will be created and redeemed by "authorized purchasers" ("AP").
- An AP purchases or redeems creation baskets or redemption baskets, respectively, from or to UGA.
- UGA does NOT seek to use leverage and targets a 1:1 relationship between assets and gasoline exposure.
- The management fee starts at 0.60% and drops to 0.50% for assets above $1 billion.
- United States Commodity Funds, LLC , UGA's manager and General Partner, seeks to minimize tracking error, NOT outperform the market.
- Transparent portfolio market price, NAV, and portfolio holdings.
- Annual tax reporting done by PricewaterhouseCoopers.
UGA's Creation & Redemption Process
- Creation/redemption basket size 100,000 units
- Order cut-off for APs is 12:00 pm EST
- UGA's NAV calculated as of 4:00 pm EST
- Settlement is T+3
- Transaction charge for each AP order is $1,000 (per order, not per basket)
- Creation payment is in cash and/or acceptable Treasuries
- Custodian is Brown Brothers Harriman & Co.
- Marketing Agent is ALPS Distributors, Inc.