Nasdaq interviewed AccuShares to learn more about two new inexpensive crude oil products they are bringing to the ETF Market.

What is AccuShares?

Founded in 2011, AccuShares Investment Management, LLC, (www.accushares.com) develops and sponsors innovative exchange traded funds (ETFs) in key alternative asset classes, including oil and volatility. The company holds a series of technology patents that provide the basis for a more institutional approach to constructing index-based products, enhancing tracking accuracy and transparency while reducing fund costs.

What is AccuShares bringing to the ETF market?

AccuShares will be launching the AccuShares S&P GSCI Crude Oil Fund ER and an Up Class Shares (symbol:OILU) and a Down Class Shares (symbol:OILD) on the Nasdaq exchange on June 28, 2016.

What is the strategy behind the new ETF shares?

OILU and OILD are designed to provide WTI crude oil price exposure at an industry low management fee of 0.29% (as of June 16, 2016) without the indirect trading expenses normally associated with futures based products, and with no K-1’s.

What are Up/Down Shares, and how do they work?

The AccuShares S&P GSCI Crude Oil Fund ER Up Class Shares (Symbol: OILU) seeks to provide a return based on the S&P GSCI Crude Oil Excess Return Index, while the AccuShares S&P GSCI Crude Oil Fund ER Down Class Shares (Symbol: OILD) seeks to provide the inverse return based on the S&P GSCI Crude Oil Excess Return Index. Together, these fund shares seek to take advantage of potential opportunity in rising and falling WTI crude oil markets for an industry low expense ratio for crude oil ETP’s of 0.29% (as of June 16, 2016) without the use of futures and the associated direct trading costs impact. The fund shares are not intended to be used as long-term passive investment vehicles and should be used by investors who understand the risks of the crude oil commodity market.

How are the fund shares different from existing crude oil fund products?

Because of the AccuShares structure, there are no direct trading costs from managing futures positions which could impact an investors returns. Additionally, OILD is not subject to the daily rebalance drawbacks of other inverse ETP’s and the fully funded package means investors don’t need to resort to shorting crude oil linked securities.

Who are the primary investor targets for you? Retail? Institutional?

OILU and OILD are designed for all types of investors who are interested in gaining WTI crude oil exposure and who understand the risks of investing in commodity products and are willing to actively monitor their investment.

Who are these fund shares right for?

OILU and OILD are designed for investors seeking the lowest cost crude oil ETP alternative (as of June 16, 2016), who aren’t interested in having futures trading activities impact the return on their investment and understand the risks of investing in commodity products and are willing to actively monitor their investment.

Learn more about the products here.

Investing in the fund shares involves substantial risk and high volatility, including loss of entire principal. Shares of the fund are intended for sophisticated investors, professional investors and institutional investors.

The Funds are not intended to be used as long-term passive investment vehicles and should be used by investors who understand the risks of the crude oil market.

The Fund is very complex and involves a significant degree of risk; therefore it is not suitable for all investors. Moreover, shares of the Fund are intended for sophisticated, professional and institutional investors. The Fund Shares are only appropriate for short-term holding periods.

About the Index

The S&P GSCI® Crude Oil Index is a sub-index of the S&P GSCI® that reflects only the prices of the included WTI Crude Oil futures contracts. The index does not incorporate interest on collateral or the premium or discount obtained by rolling positions forward as they approach delivery

Please see www.spindices.com/documents/methodologies/methodology-sp-gsci.pdf for further information.

Investor Reassessment

The Funds have been designed to be utilized by investors who are prepared to reassess their holding of the shares at least as frequently as each Distribution Date. Investors in a Fund who wish to maintain a maximum exposure, a targeted absolute exposure, or a targeted relative exposure to such Fund’s Underlying Index over multiple Distribution Dates should reassess their positions following all cash, share and Net Income Distributions, and all Fund resets relating to the Share Index Factors. The Funds will not compound investor gains or otherwise rebalance investor positions to maximize investor exposure. The Funds are designed to make Regular Distributions of cash and in some cases shares to facilitate regular distribution of investor gains and to promote a deliberate and regular reassessment by investors of their investment in the Funds.

Investors who hold shares over one or more consecutive Distribution Dates without reassessment of their Fund share portfolio may experience decreased exposure to the Fund’s Underlying Index as well as a reduced opportunity for gain and loss.

The sponsor will make all or any part of any such distribution in paired shares instead of cash, where further cash distributions would adversely affect the liquidity of the market for the Fund’s shares. For example, a distribution in paired shares may be made, if a distribution in cash would result in the Fund having aggregate Class Values of less than $25 million.

Any paired Up Shares and Down Shares received, as a result of Regular and Special Distributions, will have no responsiveness to changes in the Underlying Index, as those shares will exactly offset each other.

To the extent you received shares of the opposite share class as a result of a distribution, and you wish to maintain your original correlation to the underlying index, you must either use any cash received from the distribution to purchase additional shares of your original share class, or sell the shares of the opposite share class. Your transaction in these share classes may be subject to your broker’s commissions or other charges. The trading prices you receive and your transaction expenses may impede your ability to closely track the performance of an Underlying Index through an investment in the shares of the Funds.

Disclosures

Neither the Funds nor the Trust is an investment company under the Investment Company Act of 1940 or is subject to regulation under the Commodities Exchange Act or by the Commodity Futures Trading Commission and investors in the Fund are not afforded protection under such laws and regulations.

Unlike other exchange traded products, the fund will engage principally in cash distributions and potentially paired share distributions to deliver to the shareholders the economic exposure to the funds’ underlying index, the S&P GSCI® Crude Oil Excess Return Index. Such distributions may not represent any income or gains on the fund’s eligible assets and may represent a return of shareholder’s capital. Each fund will issue its shares in offsetting pairs, where one constituent of the pair is positively linked to the funds’ underlying index (“Up Shares”) and the other constituent is negatively linked to the fund’s underlying index (“Down Shares”). Therefore, the fund will only issue, distribute, maintain and redeem equal quantities of Up and Down shares at all times.

Exposure to the price change in crude oil involves a significant degree of risk and may not be appropriate for all investors.

Investing in the Funds involves substantial risk and high volatility, including loss of entire principal. Shares of the fund are intended for sophisticated investors, professional investors and institutional investors. The Funds are not intended to be used as long-term passive investment vehicles and should be used by investors who understand the risks of the crude oil market. By purchasing the Down Shares, Investors should have an expectation the underlying index will decrease and the opposite for Up shares. Please read the prospectus carefully before investing. Obtain a prospectus by clicking the link below.

PROSPECTUS LINK

AccuShares Commodities Trust I is a Delaware statutory trust organized by AccuShares Investment Management LLC, the trust’s sponsor, into separate Fund series. Each Fund’s shares represent fractional undivided interests in and ownership of that Fund only. Each Fund will offer its shares on a continuous basis and be listed on the Nasdaq. Foreside Funds Services, LLC, marketing agent.

Disclaimers

The "The S&P GSCI® Crude Oil Index" is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and, and has been licensed for use by AccuShares Management LLC. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by AccuShares Management LLC. AccuShares Crude Oil Fund ER is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P GSCI Crude Oil.

Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC, a part of McGraw Hill Financial. Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have been licensed to S&P Dow Jones Indices LLC. It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, Dow Jones, S&P and their respective affiliates (collectively “S&P Dow Jones Indices”) do not sponsor, endorse, sell, or promote any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices does not have the necessary licenses. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.