News Column

UNITED STATES COMMODITY INDEX FUNDS TRUST - 10-Q - Management's Discussion and Analysis of Financial Condition and Results of Operations.

August 11, 2014

The following discussion should be read in conjunction with the condensed financial statements and the notes thereto of the United States Commodity Index Funds Trust (the "Trust") included elsewhere in this quarterly report on Form 10-Q. Forward-Looking Information

This quarterly report on Form 10-Q, including this "Management's Discussion and Analysis of Financial Condition and Results of Operations," contains forward-looking statements regarding the plans and objectives of management for future operations. This information may involve known and unknown risks, uncertainties and other factors that may cause the Trust's actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe the Trust's future plans, strategies and expectations, are generally identifiable by use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend" or "project," the negative of these words, other variations on these words or comparable terminology. These forward-looking statements are based on assumptions that may be incorrect, and the Trust cannot assure investors that the projections included in these forward-looking statements will come to pass. The Trust's actual results could differ materially from those expressed or implied by the forward-looking statements as a result of various factors. The Trust has based the forward-looking statements included in this quarterly report on Form 10-Q on information available to it on the date of this quarterly report on Form 10-Q, and the Trust assumes no obligation to update any such forward-looking statements. Although the Trust undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, investors are advised to consult any additional disclosures that the Trust may make directly to them or through reports that the Trust in the future files with the U.S. Securities and Exchange Commission (the "SEC"), including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Introduction The United States Commodity Index Fund ("USCI"), the United States Copper Index Fund ("CPER"), the United States Agriculture Index Fund ("USAG") and the United States Metals Index Fund ("USMI") are each a commodity pool that issues shares representing fractional undivided beneficial interests in USCI, CPER, USAG and USMI, respectively ("shares"), that may be purchased and sold on the NYSE Arca, Inc. (the "NYSE Arca"). USCI, CPER, USAG and USMI are series of the Trust, a Delaware statutory trust formed on December 21, 2009. USCI, CPER, USAG and USMI are collectively referred to herein as the "Trust Series." The Trust and each Trust Series operate pursuant to the Trust's Third Amended and Restated Declaration of Trust and Trust Agreement (the "Trust Agreement"), dated March 22, 2013. Wilmington Trust Company (the "Trustee"), a Delaware banking corporation, is the Delaware trustee of the Trust. The Trust and each Trust Series are managed and controlled by United States Commodity Funds LLC ("USCF").



United States Commodity Index Fund

USCI invests in futures contracts for commodities that are traded on the New York Mercantile Exchange (the "NYMEX"), ICE Futures ("ICE Futures"), Chicago Board of Trade ("CBOT"), Chicago Mercantile Exchange ("CME"), London Metal Exchange ("LME"), Commodity Exchange, Inc. ("COMEX") or on other domestic or foreign exchanges (such exchanges, collectively, the "Futures Exchanges") (such futures contracts, collectively, "Futures Contracts") and, to a lesser extent, in order to comply with regulatory requirements or in view of market conditions, other commodity-based contracts and instruments such as cash-settled options on Futures Contracts, forward contracts relating to commodities, cleared swap contracts and other over-the-counter transactions that are based on the price of commodities and Futures Contracts (collectively, "Other Commodity-Related Investments"). Market conditions that USCF currently anticipates could cause USCI to invest in Other Commodity Related Investments would be those allowing USCI to obtain greater liquidity or to execute transactions with more favorable pricing. 49 The investment objective of USCI is for the daily changes in percentage terms of its shares' per share net asset value ("NAV") to reflect the daily changes in percentage terms of the SummerHaven Dynamic Commodity Index Total ReturnSM (the "SDCI"), less USCI's expenses. USCF does not intend to operate USCI in a fashion such that its per share NAV will equal, in dollar terms, the spot prices of the commodities underlying the Benchmark Component Futures Contracts (as defined below) that comprise the SDCI or the prices of any particular group of Futures Contracts. The SDCI is owned and maintained by SummerHaven Index Management, LLC ("SummerHaven Indexing") and calculated and published by the NYSE Arca. The SDCI is comprised of fourteen Futures Contracts that are selected on a monthly basis from a list of twenty-seven possible Futures Contracts. The Futures Contracts that at any given time make up the SDCI are referred to herein as "Benchmark Component Futures Contracts." USCI invests first in the current Benchmark Component Futures Contracts and other Futures Contracts intended to replicate the return on the current Benchmark Component Futures Contracts and, thereafter may hold Futures Contracts in a particular commodity other than one specified as the Benchmark Component Futures Contract, or may hold Other Commodity-Related Investments that may fail to closely track the SDCI's total return movements. If USCI increases in size, and due to its obligations to comply with regulatory limits or due to other market pricing or liquidity factors, USCI may invest in Futures Contract months other than the designated month specified as the Benchmark Component Futures Contract, or in Other Commodity-Related Investments, which may have the effect of increasing transaction related expenses and may result in increased tracking error. USCI seeks to achieve its investment objective by investing in Futures Contracts and Other Commodity-Related Investments such that daily changes in its per share NAV closely track the daily changes in the price of the SDCI. USCI's positions in Commodity Interests are rebalanced on a monthly basis in order to track the changing nature of the SDCI. If Futures Contracts relating to a particular commodity remain in the SDCI from one month to the next, such Futures Contracts are rebalanced to the 7.14% target weight. Specifically, on a specified day near the end of each month (the "Selection Date"), it will be determined if a current Benchmark Component Futures Contract will be replaced by a new Futures Contract in either the same or different underlying commodity as a Benchmark Component Futures Contract for the following month, in which case USCI's investments would have to be changed accordingly. In order that USCI's trading does not unduly cause extraordinary market movements, and to make it more difficult for third parties to profit by trading based on market movements that could be expected from changes in the Benchmark Component Futures Contracts, USCI's investments typically are not rebalanced entirely on a single day, but rather typically rebalanced over a period of four days. After fulfilling the margin and collateral requirements with respect to its Commodity Interests, USCF invests the remainder of USCI's proceeds from the sale of shares in short-term obligations of the United States government ("Treasuries") or cash equivalents, and/or merely hold such assets in cash (generally in interest-bearing accounts).



United States Copper Index Fund

CPER invests in Futures Contracts for commodities that are traded on the COMEX and, to a lesser extent, in order to comply with regulatory requirements or in view of market conditions, Other Copper-Related Investments (as defined below). Market conditions that USCF currently anticipates could cause CPER to invest in Other Copper-Related Investments would be those allowing CPER to obtain greater liquidity or to execute transactions with more favorable pricing. The investment objective of CPER is for the daily changes in percentage terms of its shares' per share NAV to reflect the daily changes in percentage terms of the SummerHaven Copper Index Total ReturnSM (the "SCITR"), less CPER's expenses. USCF does not intend to operate CPER in a fashion such that its per share NAV will equal, in dollar terms, the spot prices of the commodities underlying the Benchmark Component Copper Futures Contracts (as defined below) that comprise the SCITR or the prices of any particular group of Futures Contracts. The SCITR is designed to reflect the performance of the investment returns form a portfolio of copper futures contracts. The SCITR is owned and maintained by SummerHaven Indexing and calculated and published by the NYSE Arca. The SCITR is comprised of either two or three Eligible Copper Futures Contracts that are selected on a monthly basis based on quantitative formulas relating to the prices of the Eligible Copper Futures Contracts developed by SummerHaven Indexing. The Eligible Copper Futures Contracts that at any given time make up the SCITR are referred to herein as "Benchmark Component Copper Futures Contracts." 50

CPER seeks to achieve its investment objective by investing to the fullest extent possible in the Benchmark Component Copper Futures Contracts. Then, if constrained by regulatory requirements or in view of market conditions, CPER will invest next in other Eligible Copper Futures Contracts, and finally to a lesser extent, in other exchange traded futures contracts that are economically identical or substantially similar to the Benchmark Component Copper Futures Contracts if one or more other Eligible Copper Futures Contracts is not available. When CPER has invested to the fullest extent possible in exchange-traded futures contracts, CPER may then invest in other contracts and instruments based on the Benchmark Component Copper Futures Contracts, other Eligible Copper Futures Contracts or copper, such as cash-settled options, forward contracts, cleared swap contracts and swap contracts other than cleared swap contracts. Other exchange-traded futures contracts that are economically identical or substantially similar to the Benchmark Component Copper Futures Contracts and other contracts and instruments based on the Benchmark Component Copper Futures Contracts, are collectively referred to as "Other Copper-Related Investments," and together with Benchmark Component Copper Futures Contracts and other Eligible Copper Futures Contracts, "Copper Interests."



United States Agriculture Index Fund

USAG invests in Futures Contracts for commodities that are traded on the ICE Futures US, the ICE Futures Canada, the CBOT, the CME and the Kansas City Board of Trade ("KCBT") and, to a lesser extent, in order to comply with regulatory requirements or in view of market conditions, Other Agriculture-Related Investments (as defined below). Market conditions that USCF currently anticipates could cause USAG to invest in Other Agriculture-Related Investments would be those allowing USAG to obtain greater liquidity or to execute transactions with more favorable pricing. The investment objective of USAG is for the daily changes in percentage terms of its shares' per share NAV to reflect the daily changes in percentage terms of the SummerHaven Dynamic Agriculture Index Total ReturnSM (the "SDAI"), less USAG's expenses. USCF does not intend to operate USAG in a fashion such that its per share NAV will equal, in dollar terms, the spot prices of the commodities underlying the Benchmark Component Agriculture Futures Contracts (as defined below) that comprise the SDAI or the prices of any particular group of Futures Contracts. The SDAI is owned and maintained by SummerHaven Indexing and calculated and published by the NYSE Arca. The SDAI is comprised of fourteen Eligible Agriculture Futures Contracts that are selected on a monthly basis based on quantitative formulas developed by SummerHaven Indexing. The Eligible Agriculture Futures Contracts that at any given time make up the SDAI are referred to herein as "Benchmark Component Agriculture Futures Contracts." USAG seeks to achieve its investment objective by investing to the fullest extent possible in the Benchmark Component Agriculture Futures Contracts. Then, if constrained by regulatory requirements or in view of market conditions, USAG will invest next in other Eligible Agriculture Futures Contracts, and finally to a lesser extent, in other exchange traded futures contracts that are economically identical or substantially similar to the Benchmark Component Agriculture Futures Contracts if one or more other Eligible Agriculture Futures Contracts is not available. When USAG has invested to the fullest extent possible in exchange-traded futures contracts, USAG may then invest in other contracts and instruments based on the Benchmark Component Agriculture Futures Contracts, other Eligible Agriculture Futures Contracts or the agricultural commodities included in the SDAI, such as cash-settled options, forward contracts, cleared swap contracts and swap contracts other than cleared swap contracts. Other exchange-traded futures contracts that are economically identical or substantially similar to the Benchmark Component Agriculture Futures Contracts and other contracts and instruments based on the Benchmark Component Agriculture Futures Contracts, are collectively referred to as "Other Agriculture-Related Investments," and together with Benchmark Component Agriculture Futures Contracts and other Eligible Agriculture Futures Contracts, "Agriculture Interests."



United States Metals Index Fund

USMI invests in Futures Contracts for commodities that are traded on the NYMEX, the LME and the COMEX and, to a lesser extent, in order to comply with regulatory requirements or in view of market conditions, Other Metals-Related Investments (as defined below). Market conditions that USCF currently anticipates could cause USMI to invest in Other Metals-Related Investments would be those allowing USMI to obtain greater liquidity or to execute transactions with more favorable pricing. 51 The investment objective of USMI is for the daily changes in percentage terms of its shares' per share NAV to reflect the daily changes in percentage terms of the SummerHaven Metals Index Total ReturnSM (the "SDMI"), less USMI's expenses. USCF does not intend to operate USMI in a fashion such that its per share NAV will equal, in dollar terms, the spot prices of the commodities underlying the Benchmark Component Metals Futures Contracts (as defined below) that comprise the SDMI or the prices of any particular group of Futures Contracts. The SDMI is owned and maintained by SummerHaven Indexing and calculated and published by the NYSE Arca. The SDMI is comprised of ten Eligible Metals Futures Contracts that are selected on a monthly basis based on quantitative formulas developed by SummerHaven Indexing. The Eligible Metals Futures Contracts that at any given time make up the SDMI are referred to herein as "Benchmark Component Metals Futures Contracts." USMI seeks to achieve its investment objective by investing to the fullest extent possible in the Benchmark Component Metals Futures Contracts. Then, if constrained by regulatory requirements or in view of market conditions, USMI will invest next in other Eligible Metals Futures Contracts, and finally to a lesser extent, in other exchange traded futures contracts that are economically identical or substantially similar to the Benchmark Component Metals Futures Contracts if one or more other Eligible Metals Futures Contracts is not available. When USMI has invested to the fullest extent possible in exchange-traded futures contracts, USMI may then invest in other contracts and instruments based on the Benchmark Component Metals Futures Contracts, other Eligible Metals Futures Contracts or the metals included in the SDMI, such as cash-settled options, forward contracts, cleared swap contracts and swap contracts other than cleared swap contracts. Other exchange-traded futures contracts that are economically identical or substantially similar to the Benchmark Component Metals Futures Contracts and other contracts and instruments based on the Benchmark Component Metals Futures Contracts are collectively referred to as "Other Metals-Related Investments," and together with Benchmark Component Metals Futures Contracts and other Eligible Metals Futures Contracts, "Metals Interests." Other Defined Terms



The SCITR, together with the SDCI, the SDAI and the SDMI are referred to throughout this quarterly report on Form 10-Q collectively as the "Applicable Index" or "Indices."

Benchmark Component Futures Contracts, Benchmark Component Copper Futures Contracts, Benchmark Component Agriculture Futures Contracts and Benchmark Component Metals Futures Contracts are referred to throughout this quarterly report on Form 10-Q collectively as "Applicable Benchmark Component Futures Contracts."

Other Commodity-Related Investments, Other Copper-Related Investments, Other Agriculture-Related Investments and Other Metals-Related Investments are collectively referred to herein as "Other Related Investments." Commodity Interests, Copper Interests, Agriculture Interests and Metals Interests are collectively referred to herein as "Applicable Interests" throughout this quarterly report on Form 10-Q.

Regulatory Disclosure Impact of Accountability Levels, Position Limits and Price Fluctuation Limits. Futures contracts include typical and significant characteristics. Most significantly, the Commodity Futures Trading Commission (the "CFTC") and the futures exchanges have established accountability levels and position limits on the maximum net long or net short futures contracts in commodity interests that any person or group of persons under common trading control (other than as a hedge, which is not applicable to the Trust Series' investments) may hold, own or control. The net position is the difference between an individual or firm's open long contracts and open short contracts in any one commodity. In addition, most U.S.-based futures exchanges limit the daily price fluctuation for futures contracts. Currently, the ICE Futures imposes position and accountability limits that are similar to those imposed by U.S.-based futures exchanges and also limits the maximum daily price fluctuation, while some other non-U.S. futures exchanges have not adopted such limits. 52 The accountability levels for the commodities comprising an Applicable Index and other futures contracts traded on U.S.-based futures exchanges are not a fixed ceiling, but rather a threshold above which such exchanges may exercise greater scrutiny and control over an investor's positions. As of June 30, 2014, USCI held 2,503 Futures Contracts on the NYMEX, 3,479 Futures Contracts on ICE Futures, 4,003 Futures Contracts on CBOT, 2,462 Futures Contracts on CME and 4,344 Futures Contracts on LME. CPER held 54 Futures Contracts on COMEX. USAG held 30 Futures Contracts on ICE Futures, 7 Futures Contracts on CME, 1 Futures Contract on KCBT and 34 Futures Contracts on CBOT and USMI held 4 Futures Contracts on NYMEX, 38 Futures Contracts on LME and 11 Futures Contracts on COMEX. For the six months ended June 30, 2014, no Trust Series exceeded accountability levels imposed by the NYMEX, COMEX, CME, CBOT, KCBT or ICE Futures. Position limits differ from accountability levels in that they represent fixed limits on the maximum number of futures contracts that any person may hold and cannot allow such limits to be exceeded without express CFTC authority to do so. In addition to accountability levels and position limits that may apply at any time, the Futures Exchanges may impose position limits on contracts held in the last few days of trading in the near month contract to expire. It is unlikely that a Trust Series will run up against such position limits. A Trust Series does not typically hold the near month contract in its Applicable Benchmark Component Futures Contracts. In addition, each Trust Series' investment strategy is to close out its positions during each Rebalancing Period in advance of the period right before expiration and purchase new contracts. As such, none of the Trust Series anticipates that position limits that apply to the last few days prior to a contract's expiration will impact it. For the six months ended June 30, 2014, no Trust Series exceeded position limits imposed by the NYMEX, COMEX, CME, CBOT, KCBT or ICE Futures. The regulation of commodity interest trading in the United States and other countries is an evolving area of the law. The various statements made in this summary are subject to modification by legislative action and changes in the rules and regulations of the SEC, Financial Industry Regulatory Authority ("FINRA"), CFTC, the National Futures Association (the "NFA"), the futures exchanges, clearing organizations and other regulatory bodies.



Futures Contracts and Position Limits

The CFTC is prohibited by statute from regulating trading on non-U.S. futures exchanges and markets. The CFTC, however, has adopted regulations relating to the marketing of non-U.S. futures contracts in the United States. These regulations permit certain contracts on non-U.S. exchanges to be offered and sold in the United States. On November 5, 2013, the CFTC proposed a rulemaking that would establish specific limits on speculative positions in 28 physical commodity futures and option contracts as well as swaps that are economically equivalent to such contracts in the agriculture, energy and metals markets (the "Position Limit Rules"). On the same date, the CFTC proposed another rule addressing the circumstances under which market participants would be required to aggregate their positions with other persons under common ownership or control (the "Proposed Aggregation Requirements"). Specifically, the Position Limit Rules would, among other things: identify which contracts are subject to speculative position limits; set thresholds that restrict the number of speculative positions that a person may hold in a spot month, individual month, and all months combined; create an exemption for positions that constitute bona fide hedging transactions; impose responsibilities on designated contract markets ("DCMs") and swap execution facilities ("SEFs") to establish position limits or, in some cases, position accountability rules; and apply to both futures and swaps across four relevant venues: over-the-counter ("OTC"), DCMs, SEFs as well as non-U.S. located platforms. Until such time as the Position Limit Rules are adopted, the regulatory architecture in effect prior to the adoption of the Position Limit Rules will govern transactions in commodities and related derivatives (collectively, "Referenced Contracts"). Under that system, the CFTC enforces federal limits on speculation in agricultural products (e.g., corn, wheat and soy), while futures exchanges enforce position limits and accountability levels for agricultural and certain energy products (e.g., oil and natural gas). As a result, the Trust Series may be limited with respect to the size of its investments in any commodities subject to these limits. Finally, subject to certain narrow exceptions, the vacated Position Limit Rules require the aggregation, for purposes of the position limits, of all positions in the 28 Referenced Contracts held by a single entity and its affiliates, regardless of whether such position existed on U.S. futures exchanges, non-U.S. futures exchanges, in cleared swaps or in over-the-counter swaps. Under the CFTC's existing position limit requirements and the Position Limit Rules, a market participant is generally required to aggregate all positions for which that participant controls the trading decision with all positions for which that participant has a 10 percent or greater ownership interest in an account or position, as well as the positions of two or more persons acting pursuant to an express or implied agreement or understanding. At this time, it is unclear how the Proposed Aggregation Requirements may affect a Trust Series, but it may be substantial and adverse. By way of example, the Proposed Aggregation Requirements in combination with the Position Limit Rules may negatively impact the ability of a Trust Series to meet its investment objectives through limits that may inhibit USCF's ability to sell additional Creation Baskets of a Trust Series. 53



Based on its current understanding of the final position limit regulations, USCF does not anticipate significant negative impact on the ability of the Trust Series to achieve their investment objectives.

"Swap" Transactions The Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") imposes regulatory requirements on certain "swap" transactions that a Trust Series is authorized to engage in that may ultimately impact the ability of a Trust Series to meet its investment objective. The term "swap" is broadly defined to include various types of over-the-counter derivatives, including swaps and options. Current rules and regulations require that certain transactions ultimately falling within the definition of "swap" be executed on organized exchanges or "SEFs" and cleared through regulated clearing organizations or "derivative clearing organizations" ("DCOs"), if the CFTC mandates the central clearing of a particular contract. Currently, "swap dealers," "major swap participants," certain active funds, commodity pools, certain credit default swaps and interest rate swaps, private funds and entities predominantly engaged in financial activities are required to centrally clear. If a swap is required to be cleared, the initial margin will be set by the clearing organizations, subject to certain regulatory requirements and guidelines. Initial and variation margin requirements for swap dealers and major swap participants who enter into uncleared swaps and capital requirements for swap dealers and major swap participants who enter into both cleared and uncleared trades will be set by the CFTC, the SEC or the applicable "Prudential Regulator." Current rules and regulations also require that certain swaps determined to be available to trade on a SEF must be executed over such a facility, including the obligation for facilities offering multiple person execution services. Based upon applications filed by several SEFs with the CFTC, the CFTC has determined that certain interest rate swaps and credit default index swaps must register as a SEF and be executed on a SEF. On November 14, 2013, the CFTC's Division of Clearing and Risk, Division of Market Oversight and Division of Swap Dealer and Intermediary Oversight published guidance with respect to the application of certain CFTC rules on SEFs. That guidance clarified that SEFs could not restrict access to participants who are permitted to trade swaps and that SEFs may not require participants to have breakage agreements in place with other counterparties. Swaps between certain affiliated entities within a corporate group are exempt from the clearing requirement. The rule permits affiliated counterparties to elect not to clear a swap subject to the clearing requirement if, among other things, the counterparties are majority-owned affiliates whose financial statements are included in the same consolidated financial statements and whose swaps are documented and subject to a centralized risk management program. However, the exemption does not apply to swaps entered into by affiliated counterparties with unaffiliated counterparties. Current rules and regulations require enhanced customer protections, risk management programs, internal monitoring and controls, capital and liquidity standards, customer disclosures and auditing and examination programs for FCMs. The rules are intended to afford greater assurances to market participants that customer segregated funds and secured amounts are protected, customers are provided with appropriate notice of the risks of futures trading and of the FCMs with which they may choose to do business, FCMs are monitoring and managing risks in a robust manner, the capital and liquidity of FCMs are strengthened to safeguard the continued operations and the auditing and examination programs of the CFTC and the self-regulatory organizations are monitoring the activities of FCMs in a thorough manner. On November 6, 2013, the CFTC published a final rule that imposes requirements on swap dealers and major swap participants with respect to the treatment of collateral posted by their counterparties to margin, guarantee, or secure uncleared swaps. In other words, the rule places restrictions on what swap dealers and major swap participants can do with collateral posted by each Trust Series in connection with uncleared swaps. In addition to the rules and regulations imposed under the Dodd-Frank Act, swap dealers that are European banks may also be subject to European Market Infrastructure Regulation ("EMIR"). These regulations have not yet been fully implemented. 54



As the regulatory requirements are constantly evolving, it is difficult to predict the effect any regulatory changes may have on the Trust Series.

Commodity Markets



Commodity Futures Price Movements

Six Months Ended June 30, 2014

As measured by the four major diversified commodity indexes listed below, commodity futures prices exhibited an upward trend during the six months ended June 30, 2014. The table below compares the total returns of the SDCI to the three major diversified commodity indexes over this time period. SummerHaven Dynamic Commodity Index Total ReturnSM(1) 8.34 % S&P GSCI Commodity Index (GSCI®) Total Return(2) 5.71 % Dow Jones-UBS Commodity Index Total ReturnSM(2)



7.08 % Deutsche Bank Liquid Commodity Index-Optimum Yield Total ReturnTM(2) 4.64 %

(1) The inception date for the SummerHaven Dynamic Commodity Index Total ReturnSM is December 2009. (2) Source: Bloomberg

The value of the SDCI as of December 31, 2013 was 1,678.73. As of June 30, 2014, the value of the SDCI was 1,818.67, up approximately 8.34% over the six months ended June 30, 2014. The return of approximately 8.34% on the SDCI listed above is a hypothetical return only and could not actually be achieved by an investor holding Futures Contracts due to the impact of trading costs and other expenses. USCI's per share NAV began the year at $56.06 and ended the period at $60.44 on June 30, 2014, an increase of approximately 7.81% over the period. USCI's per share NAV reached its high for the period on June 26, 2014 at $61.13 and reached its low for the period on January 9, 2014 at $54.77. See "Tracking the SDCI" below for information about how expenses and income affect USCI's per share NAV. Copper Markets



Copper Futures Price Movements

Six Months Ended June 30, 2014

As measured by the two major copper indexes, copper futures prices exhibited daily swings with a downward trend during the six months ended June 30, 2014. The table below compares the total returns of the SCITR to the Dow Jones-UBS Copper Subindex Total Return over this time period.

SummerHaven Copper Index Total ReturnTM(1) (5.03 )% Dow Jones-UBS Copper Subindex Total Return(2) (5.11 )%

(1) The inception date for the SummerHaven Copper Index Total ReturnTM is November 2010. (2) Source: Bloomberg



The value of the SCITR as of December 31, 2013 was 1,114.30. As of June 30, 2014, the value of the SCITR was 1,058.21 down approximately 5.03% over the six months ended June 30, 2014.

The return of approximately (5.03)% on the SCITR listed above is a hypothetical return only and could not actually be achieved by an investor holding Futures Contracts due to the impact of trading costs and other expenses. CPER's per share NAV began the year at $22.92 and ended the period at $21.66 on June 30, 2014, a decrease of approximately 5.50% over the period. CPER's per share NAV reached its high for the period on January 2, 2014 at $27.02 and reached its low for the period on March 13, 2014 at $19.75. See "Tracking the SCITR" for information about how expenses and income affect CPER's per share NAV. 55 Agriculture Markets



Agriculture Futures Price Movements

Six Months Ended June 30, 2014

As measured by the four major agriculture indexes listed below, agriculture futures prices exhibited moderate daily swings along with an upward trend during the six months ended June 30, 2014. The table below compares the total returns of the SDAI to the three major agriculture indexes over this time period. SummerHaven Dynamic Agriculture Index Total ReturnSM(1) 11.74 % S&P GSCI® Agriculture Index Total Return(2) 1.66 % Dow Jones-UBS Agriculture Total Return Sub-indexSM(2) 4.89 % Deutsche Bank Liquid Commodity Index-Optimum Yield Agriculture ReturnTM(2)

0.13 %

(1) The inception date for the SummerHaven Dynamic Agriculture Index Total ReturnSM is September 2010. (2) Source: Bloomberg The value of the SDAI as of December 31, 2013 was 324.11. As of June 30, 2014, the value of the SDAI was 362.15, up approximately 11.74% over the six months ended June 30, 2014. The return of approximately 11.74% on the SDAI listed above is a hypothetical return only and could not actually be achieved by an investor holding Futures Contracts due to the impact of trading costs and other expenses. USAG's per share NAV began the year at $22.79 and ended the period at $25.19 on June 30, 2014, an increase of approximately 10.53% over the period. USAG's per share NAV reached its high for the period on April 29, 2014 at $27.02 and reached its low for the period on January 9, 2014 at $22.56. See "Tracking the SDAI" below for information about how expenses and income affect USAG's per share NAV. Metals Markets



Metals Futures Price Movements

Six Months Ended June 30, 2014

As measured by the four major metals indexes listed below, metals futures prices exhibited moderate daily swings along with a downward trend during the six months ended June 30, 2014. The table below compares the total returns of the SDMI to the three major metals indexes over this time period. SummerHaven Metals Index Total ReturnSM(1) 6.90 % Rogers International Commodity Index®-Metals Total Return(2) 4.31 % Dow Jones-UBS Industrial Metals Total Return Sub-indexSM(2) 3.56 %



Deutsche Bank Liquid Commodity Index-Optimum Yield Industrials Metals Total ReturnTM(2) 1.44 %

(1) The inception date for the SummerHaven Metals Index Total ReturnSM is

September 2010. (2) Source: Bloomberg

The value of the SDMI as December 31, 2013 was 727.17. As of June 30, 2014, the value of the SDMI was 777.32, up approximately 6.90% over the six months ended June 30, 2014. The return of approximately 6.90% on the SDMI listed above is a hypothetical return only and could not actually be achieved by an investor holding Futures Contracts due to the impact of trading costs and other expenses. USMI's per share NAV began the year at $21.97 and ended the period at $23.35 on June 30, 2014, an increase of approximately 6.28% over the period. USMI's per share NAV reached its high for the period on June 30, 2014 at $23.35 and reached its low for the period on February 4, 2014 at $21.42. See "Tracking the SDMI" below for information about how expenses and income affect USMI's per share NAV. 56



Valuation of Futures Contracts and the Computation of the Per Share NAV

Each Trust Series' NAV is calculated once each NYSE Arca trading day. The per share NAV for a particular trading day is released after 4:00 p.m.New York time. Trading during the core trading session on the NYSE Arca typically closes at 4:00 p.m.New York time. The Trust Series' Administrator uses the closing prices on the relevant Futures Exchanges of the Applicable Benchmark Component Futures Contracts (determined at the earlier of the close of such exchange or 2:30 p.m.New York time) for the contracts held on the Futures Exchanges, but calculates or determines the value of all other investments of such Trust Series using market quotations, if available, or other information customarily used to determine the fair value of such investments. Results of Operations

On July 30, 2010, USCI received a notice of effectiveness from the SEC for its registration of 50,000,000 shares on Form S-1 with the SEC. On August 10, 2010, USCI listed its shares on the NYSE Arca under the ticker symbol "USCI." USCI established its initial offering per share NAV by setting the price at $50.00 and issued 100,000 shares to the initial authorized purchaser in exchange for $5,000,000 in cash on August 10, 2010. USCI commenced investment operations on August 10, 2010 by purchasing Futures Contracts traded on the Futures Exchanges. In order to satisfy NYSE Arca listing standards that at least 100,000 shares be outstanding at the beginning of the trading day on the NYSE Arca, USCF purchased the initial Creation Basket from the initial Authorized Purchaser at the initial offering price. The $1,000 fee that would otherwise be charged to the Authorized Purchaser in connection with an order to create or redeem was waived in connection with the initial Creation Basket. USCF agreed not to resell the shares comprising such basket except that it may require the initial Authorized Purchaser to repurchase all of these shares at a per share price equal to USCI's per share NAV within five days following written notice from USCF, subject to the conditions that: (i) on the date of repurchase, the initial Authorized Purchaser must immediately redeem these shares in accordance with the terms of the Authorized Purchaser Agreement and (ii) immediately following such redemption at least 100,000 shares of USCI remain outstanding. USCF held such initial Creation Basket until September 3, 2010, at which time the initial Authorized Purchaser repurchased the shares comprising such basket in accordance with the specified conditions noted above. On September 14, 2011, USCF redeemed the 20 Sponsor Shares of USCI, and on September 19, 2011, USCF purchased 5 shares of USCI in the open market. Since its initial offering of 50,000,000 shares, USCI has not registered any subsequent offerings of its shares. As of June 30, 2014, USCI had issued 15,850,000 shares, 10,850,000 of which were outstanding. As of June 30, 2014, there were 34,150,000 shares registered but not yet issued. More shares may have been issued by USCI than are outstanding due to the redemption of shares. In connection with the Second Amended and Restated Trust Agreement dated November 10, 2010, USMI, USAG and CPER were designated as three additional series of the Trust. Following the designation of the additional series, an initial capital contribution of $3,000 was transferred from USCF to the Trust. On November 10, 2010, the Trust transferred $1,000 to each of USMI, USAG and CPER, which was deemed a capital contribution to each series. On November 14, 2011, USCF received 40 Sponsor Shares of CPER in exchange for the previously received capital contribution, representing a beneficial interest in CPER. On December 7, 2011, USCF redeemed the 40 Sponsor Shares of CPER and purchased 40 shares of CPER in the open market. On April 13, 2012, USCF received 40 Sponsor Shares of USAG in exchange for the previously received capital contribution, representing a beneficial interest in USAG. On June 28, 2012, USCF redeemed the 40 Sponsor shares of USAG and on October 3, 2012, purchased 5 shares of USAG on the open market. On June 19, 2012, USCF received 40 Sponsor Shares of USMI in exchange for the previously received capital contribution, representing a beneficial interest in USMI. On August 27, 2012, USCF redeemed the 40 Sponsor shares of USMI and, on September 4, 2013, USCF purchased 5 shares of USMI on the open market. 57 CPER, USAG and USMI received notice of effectiveness from the SEC for its registration of 30,000,000 CPER shares, 20,000,000 USAG shares and 20,000,000 USMI shares on September 6, 2011. The order to permit listing CPER, USMI and USAG on the NYSE Arca was received on October 20, 2011. On November 15, 2011, CPER listed its shares on the NYSE Arca under the ticker symbol "CPER." CPER established its initial offering per share NAV by setting the price at $25.00 and issued 100,000 shares to the initial authorized purchaser in exchange for $2,500,000 in cash on November 15, 2011. The $1,000 fee that would otherwise have been charged to the Authorized Purchaser in connection with an order to create or redeem was waived in connection with the initial Creation Basket. Since its initial offering of 30,000,000 shares, CPER has not registered any subsequent offerings of its shares. As of June 30, 2014, CPER had issued 250,000 shares, 200,000 of which were outstanding. As of June 30, 2014, there were 29,750,000 shares registered but not yet issued. More shares may have been issued by CPER than are outstanding due to the redemption of shares. On April 13, 2012, USAG listed its shares on the NYSE Arca under the ticker symbol "USAG." USAG established its initial per share NAV by setting the price at $25.00. On April 14, 2012, USCF purchased two initial Creation Baskets of USAG. In accordance with applicable requirements of Regulation M under the Securities Exchange Act of 1934, no Creation Baskets were offered to Authorized Purchasers nor were the shares listed on the NYSE Arca until five business days had elapsed from the date of USCF's purchase of the initial Creation Basket on April 4, 2012. The fee that would have otherwise been charged in connection with an order to create or redeem was waived in connection with the initial Creation Basket. Since its initial offering of 20,000,000 shares, USAG has not registered any subsequent offerings of its shares. As of June 30, 2014, USAG had issued 200,000 shares, 100,000 of which were outstanding. As of June 30, 2014, there were 19,800,000 shares registered but not yet issued. More shares may have been issued by USAG than are outstanding due to the redemption of shares. On June 19, 2012, USMI listed its shares on the NYSE Arca under the ticker symbol "USMI." USMI established its initial per share NAV by setting the price at $25.00. On June 11, 2012, USCF purchased two initial Creation Baskets of USMI. In accordance with applicable requirements of Regulation M under the Securities Exchange Act of 1934, no Creation Baskets were offered to Authorized Purchasers nor were the shares listed on the NYSE Arca until five business days had elapsed from the date of USCF's purchase of the initial Creation Basket on June 11, 2012. The fee that would have otherwise been charged in connection with an order to create or redeem was waived in connection with the initial Creation Basket. On September 4, 2013, USCF redeemed the second of two initial Creation Baskets of USMI. Since its initial offering of 20,000,000 shares, USMI has not registered any subsequent offerings of its shares. As of June 30, 2014, USMI had issued 200,000 shares, 100,000 of which were outstanding. As of June 30, 2014, there were 19,800,000 shares registered but not yet issued. More shares may have been issued by USMI than are outstanding due to the redemption of shares. Unlike funds that are registered under the 1940 Act, shares that have been redeemed by the Trust Series cannot be resold. As a result, each Trust Series contemplates that additional offerings of its shares will be registered with the SEC in the future in anticipation of additional issuances and redemptions.



As of June 30, 2014, USCI had the following authorized purchasers: Citadel Securities LLC, Credit Suisse Securities USA LLC, Jefferies & Company Inc., JP Morgan Securities Inc., Merrill Lynch Professional Clearing Corp., Morgan Stanley & Company Inc., Newedge USA LLC and Virtu Financial BD LLC.

As of June 30, 2014, CPER, USAG and USMI had the following authorized purchasers: Credit Suisse Securities (USA) LLC, Jefferies & Company Inc., JP Morgan Securities Inc., Merrill Lynch Professional Clearing Corp., Newedge USA LLC and Virtu Financial BD LLC.



For the Six Months Ended June 30, 2014 Compared to the Six Months Ended June 30, 2013

Portfolio Expenses. The Trust Series' expenses consist of investment management fees, brokerage fees and commissions, certain offering costs, licensing fees, the fees and expenses of the independent directors of USCF and expenses relating to tax accounting and reporting requirements. The management fee that each Trust Series pays to USCF is calculated as a percentage of the total net assets of each Trust Series. The fee is accrued daily and paid monthly. 58 USCI For the six months ended For the six months ended June 30, 2014June 30, 2013

Per share net asset value, end of period $ 60.44 $ 53.51 Average daily total net assets $ 577,850,941 $ 505,594,024 Cash deposits and investments in Treasuries $ 634,203,609 $ 525,418,382 Interest income earned on Treasuries, cash and/or cash equivalents $ 144,645 $ 151,816



Percentage of cash assets held as overnight deposits and investments in Treasuries at custodian

93.09 % 85.98 %



Percentage of cash assets held as investments in Treasuries and margin deposits for Futures Contracts

6.91 % 14.02 % Annualized yield based on average daily total net assets 0.05 % 0.06 % Total unrealized gain (loss) on Futures Contracts $ 10,068,806 $ (27,244,492 ) Management fee $ 2,563,353 $ 2,381,833 Total fees and other expenses excluding management fees $ 525,227 $ 510,011



Fees and expenses related to the registration or offering of additional shares

$ - $ - Total commissions accrued to brokers $ 211,599 $ 202,327 Total commissions as annualized percentage of average total net assets 0.07 % 0.08 % Commissions accrued as a result of rebalancing $ 201,058 $ 197,063 Percentage of commissions accrued as a result of rebalancing 95.02 % 97.40 % Commissions accrued as a result of creation and redemption activity $ 10,541 $ 5,264 Percentage of commissions accrued as a result of creation and redemption activity 4.98 % 2.60 % The increase in the per share NAV for the six months ended June 30, 2014, compared to the six months ended June 30, 2013, was primarily due to the increase in the values of the Futures Contracts held by USCI. The increase in cash assets in overnight deposits and investments in Treasuries for the six months ended June 30, 2014, compared to the six months ended June 30 2013, was the result of USCI's greater size as measured by total net assets. Average interest rates earned on short-term investments held by USCI, including cash equivalents and Treasuries, were similar during the six months ended June 30, 2014, compared to the six months ended June 30, 2013. As a result, the amount of income earned by USCI as a percentage of average total net assets was similar during the six months ended June 30, 2014. The increase in total fees and expenses excluding management fees for the six months ended June 30, 2014, compared to the six months ended June 30, 2013, was due to an increase in certain of USCI's operating expenses. The increase in the total commissions accrued to brokers by USCI for the six months ended June 30, 2014, compared to the six months ended June 30, 2013, was primarily due to an increase in the number of contracts held and traded. 59 CPER For the six months ended For the six months ended June 30, 2014 June 30, 2013

Per share net asset value, end of period $ 21.66 $ 20.93 Average daily total net assets $ 3,064,814 $ 2,384,267 Cash deposits and investments in Treasuries $ 4,170,245 $ 2,304,357 Interest income earned on Treasuries, cash and/or cash equivalents $ 720 $ 776



Percentage of cash assets held as overnight deposits and investments in Treasuries at custodian

91.48 % 77.06 % Percentage of cash assets held as investments in Treasuries and margin deposits for the Futures Contracts 8.52 % 22.94 % Annualized yield based on average daily total net assets 0.05 % 0.06 % Total unrealized gain (loss) on Futures Contracts $ 166,975 $ (208,250 ) Management fee $ 9,879 $ 7,685 Total fees and other expenses excluding management fees $ 31,587 $ 50,393



Fees and expenses related to the registration or offering of additional shares

$ - $ - Total amount of the expense waiver $ 28,159 $ 47,990 Expenses before allowance for the expense waiver $ 41,466 $ 58,078 Expenses after allowance for the expense waiver $ 13,307 $ 10,088 Total commissions accrued to brokers $ 841 $ 400 Total commissions as annualized percentage of average total net assets 0.05 % 0.03 % Commissions accrued as a result of rebalancing $ 647 $ 400 Percentage of commissions accrued as a result of rebalancing 76.90 % 100 % Commissions accrued as a result of creation and redemption activity $ 194 $ - Percentage of commissions accrued as a result of creation and redemption activity 23.10 % 0 % The increase in the per share NAV for the six months ended June 30, 2014, compared to the six months ended June 30, 2013, was primarily due to the increase in the values of the Futures Contracts that CPER held. The increase in cash assets in overnight deposits and investments in Treasuries for the six months ended June 30, 2014, compared to the six months ended June 30, 2013, was the result of CPER's larger size as of June 30, 2014, as measured by total

net assets. Average interest rates earned on short-term investments held by CPER, including cash equivalents and Treasuries, were similar during the six months ended June 30, 2014, compared to the six months ended June 30, 2013. As a result, the amount of income earned by CPER as a percentage of average total net assets was similar during the six months ended June 30, 2014. The decrease in gross total fees and expenses excluding management fees for the six months ended June 30, 2014, compared to the six months ended June 30, 2013, was primarily due to a decrease in certain of CPER's operating expenses. The increase in CPER's total commissions accrued to brokers for the six months ended June 30, 2014, compared to the six months ended June 30, 2013, was primarily due to an increase in the number of contracts held and traded. 60 USAG For the six months ended For the six months ended June 30, 2014June 30, 2013

Per share net asset value, end of period $ 25.19 $ 23.31 Average daily total net assets $ 2,522,465 $ 2,437,969 Cash deposits and investments in Treasuries $ 2,568,404 $ 2,399,851 Interest income earned on Treasuries, cash and/or cash equivalents $ 624 $ 819



Percentage of cash assets held as overnight deposits and investments in Treasuries at custodian

90.82 % 81.24 % Percentage of cash assets held as investments in Treasuries and margin deposits for the Futures Contracts 9.18 % 18.76 % Annualized yield based on average daily total net assets 0.05 % 0.07 % Total unrealized loss on Futures Contracts $ (46,734 ) $ (65,745 ) Management fee $ 9,353 $ 9,672 Total fees and other expenses excluding management fees $ 11,862 $ 63,126



Fees and expenses related to the registration or offering of additional shares

$ - $ - Total amount of the expense waiver $ 9,013 $ 60,094 Expenses before allowance for the expense waiver $ 21,215 $ 72,798 Expenses after allowance for the expense waiver $ 12,202 $ 12,704 Total commissions accrued to brokers $ 702 $ 1,014 Total commissions as annualized percentage of average total net assets 0.06 % 0.08 % Commissions accrued as a result of rebalancing $ 702 $ 1,014 Percentage of commissions accrued as a result of rebalancing 100 % 100 % Commissions accrued as a result of creation and redemption activity $ - $ - Percentage of commissions accrued as a result of creation and redemption activity 0 % 0 % The increase in the per share NAV for the six months ended June 30, 2014, compared to the six months ended June 30, 2013, was primarily due to the increase in the values of the Futures Contracts that USAG held. The increase in cash assets in overnight deposits and investments in Treasuries for the six months ended June 30, 2014, compared to the six months ended June 30, 2013, was the result of USAG's larger average size as of June 30, 2014, as measured by average total net assets. Average interest rates earned on short-term investments held by USAG, including cash equivalents and Treasuries, were similar during the six months ended June 30, 2014, compared to the six months ended June 30, 2013. As a result, the amount of income earned by USAG as a percentage of average total net assets was similar during the six months ended June 30, 2014. The decrease in gross total fees and expenses excluding management fees for the six months ended June 30, 2014, compared to the six months ended June 30, 2013, was primarily due to a decrease in USAG's other operating expenses. The decrease in USAG's total commissions accrued to brokers for the six months ended June 30, 2014, compared to the six months ended June 30, 2013, was primarily due to a decrease in the number of futures contracts held and traded. 61 USMI For the six months ended For the six months ended June 30, 2014 June 30, 2013

Per share net asset value, end of period $ 23.35 $ 21.11 Average daily total net assets $ 2,231,276 $ 2,473,339 Cash deposits and investments in Treasuries $ 2,216,734 $ 2,372,760 Interest income earned on Treasuries, cash and/or cash equivalents $ 508 $ 769



Percentage of cash assets held as overnight deposits and investments in Treasuries at custodian

88.54 % 76.48 % Percentage of cash assets held as investments in Treasuries and margin deposits for the Futures Contracts 11.46 % 23.52 % Annualized yield based on average daily total net assets 0.05 % 0.06 % Total unrealized gain (loss) on Futures Contracts $ 120,935 $ (258,874 ) Management fee $ 7,556 $ 8,586 Total fees and other expenses excluding management fees $ 11,536 $ 62,494



Fees and expenses related to the registration or offering of additional shares

$ - $ - Total amount of the expense waiver $ 9,221 $ 60,068 Expenses before allowance for the expense waiver $ 19,092 $ 71,080 Expenses after allowance for the expense waiver $ 9,871 $ 11,012 Total commissions accrued to brokers $ 386 $ 377 Total commissions as annualized percentage of average total net assets 0.03 % 0.03 % Commissions accrued as a result of rebalancing $ 386 $ 377 Percentage of commissions accrued as a result of rebalancing 100 % 100 % Commissions accrued as a result of creation and redemption activity $ - $ - Percentage of commissions accrued as a result of creation and redemption activity 0 % 0 % The increase in the per share NAV for the six months ended June 30, 2014, compared to the six months ended June 30, 2013, was primarily due to the increase in the values of the Futures Contracts that USMI held. The decrease in cash assets in overnight deposits and investments in Treasuries for the six months ended June 30, 2014, compared to the six months ended June 30, 2013, was the result of USMI's smaller size as of June 30, 2014, as measured by total

net assets. Average interest rates earned on short-term investments held by USMI, including cash equivalents and Treasuries, were similar during the six months ended June 30, 2014, compared to the six months ended June 30, 2013. As a result, the amount of income earned by USMI as a percentage of average total net assets was similar during the six months ended June 30, 2014. The decrease in gross total fees and expenses excluding management fees for the six months ended June 30, 2014, compared to the six months ended June 30, 2013, was primarily due to a decrease in USMI's other operating expenses. The increase in USMI's total commissions accrued to brokers for the six months ended June 30, 2014, compared to the six months ended June 30, 2013, was primarily due to the increase in the total number of futures contracts held and traded. 62 For the Three Months Ended June 30, 2014 Compared to the Three Months Ended June 30, 2013 USCI For the three months ended For the three months ended June 30, 2014June 30, 2013

Average daily total net assets $ 617,360,080 $ 499,768,702 Interest income earned on Treasuries, cash and/or cash equivalents $ 73,991 $ 70,020 Annualized yield based on average daily total net assets 0.05 % 0.06 % Management fee $ 1,303,334 $ 1,183,699 Total fees and other expenses excluding management fees $ 264,924 $ 318,658



Fees and expenses related to the registration or offering of additional shares

$ - $ - Total commissions accrued to brokers $ 110,353 $ 109,715 Total commissions as annualized percentage of average total net assets 0.07 % 0.09 % Commissions accrued as a result of rebalancing $ 102,332 $ 106,859 Percentage of commissions accrued as a result of rebalancing 92.73 % 97.40 % Commissions accrued as a result of creation and redemption activity $ 8,020 $ 2,856 Percentage of commissions accrued as a result of creation and redemption activity 7.27 % 2.60 % Average interest rates earned on short-term investments held by USCI, including cash equivalents and Treasuries, were similar during the three months ended June 30, 2014, compared to the three months ended June 30, 2013. As a result, the amount of income earned by USCI as a percentage of average total net assets was similar during the three months ended June 30, 2014. The decrease in total fees and expenses excluding management fees for the three months ended June 30, 2014, compared to the three months ended June 30, 2013, was due to a decrease in certain of USCI's operating expenses. The increase in the total commissions accrued to brokers by USCI for the three months ended June 30, 2014, compared to the three months ended June 30, 2013, was primarily due to an increase in the number of contracts held and traded.



63


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