KEUA

KraneShares European Carbon Allowance ETF

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Investment Strategy:

The KraneShares European Carbon Allowance ETF (KEUA) provides targeted exposure to the European Union Allowances (EUA) cap-and-trade carbon allowance program. KEUA is benchmarked to the IHS Markit Carbon EUA Index, which tracks the most traded EUA futures contracts. As a part of the KraneShares suite of carbon ETFs, KEUA provides a new vehicle for participating in the price of carbon and hedging risk while supporting responsible investing and ESG goals.

KEUA Features:

  • The EUA cap-and-trade program is the world's oldest and most liquid carbon allowance market. It covers approximately 40% of the EUs total emissions covering 27 EU Member States plus Iceland, Liechtenstein and Norway1.
  • The program targets reducing emissions by at least 55% of 1990 levels by 2030 and climate neutrality by 2050. The "Fit for 55" package released in 2021 set out an expansion and tightening of the program, including an increased cap reduction from 2.2% to 4.2% per year2.
  • EUA carbon allowances are among the fastest-growing, strongest performing, and diversifying asset classes. In 2021, EU carbon allowance futures have traded around $30 billion per month.3, 4
  • Can provide potential portfolio diversification due to the historically low correlation to traditional asset classes.1, 4

By pairing KEUA with other KraneShares carbon funds, investors can customize their allocation to the global carbon credit market:

  • The KraneShares Global Carbon ETF (KRBN) offers broad exposure to carbon allowances by tracking the major global cap-and-trade programs: European Union Allowances (EUA), California Carbon Allowances (CCA), and the Regional Greenhouse Gas Initiative (RGGI).
  • The KraneShares California Carbon ETF (KCCA) focuses on the California Carbon Allowances (CCA) program. The CCA program covers about 80% of California emissions, and in 2014, the program expanded to cover Quebec and its emissions.5

1. IHS Markit, 12/31/2020.
2. Europe Commission, 7/14/2021
3. Data from Bloomberg as of 8/31/2021.
4. Diversification does not ensure a profit or guarantee against a loss.
5. California Air Resources Board, 2017.

Fund Details

Data as of 11/30/2021
TickerKEUA
Primary ExchangeNYSE
CUSIP500767561
ISINUS5007675615
Net Assets$4,319,296
Total Annual Fund Operating Expense 0.79%
Inception Date10/5/2021
Distribution FrequencyAnnual

Daily Performance

Data as of 11/30/2021
Premium Discount Chart
NAV
Net Asset Value$86.38 
Daily Change 1.94%
Price
Market Price $86.93 
Daily Change2.97%
30 Day Median Bid/Ask Spread
Value0.8%

The ETF’s 30 Day Median Bid-Ask Spread is calculated by identifying the ETF’s national best bid and national best offer ("NBBO") as of the end of each 10 second interval during each trading day of the last 30 calendar days and dividing the difference between each such bid and offer by the midpoint of the NBBO. The median of those values is identified and that value is expressed as a percentage rounded to the nearest hundredth.

Performance History

Distributions
Cumulative %
Data as of: 11/30/2021
Fund NAV Closing Price Index
1 Month25.64% 26.30%
3 Month
6 Month
Since Inception15.17% 15.91%
Cumulative %
Data as of quarter end: 09/30/2021
Fund NAV Closing Price Index
Since Inception
Growth of $10,000
Data as of 11/30/2021

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted.

The Growth of $10,000 chart reflects an initial investment of $10,000 on the day prior to the selected time period and assumes reinvestment of dividends and capital gains. For the growth of $10,000 chart since inception, the initial investment of $10,000 is instead made on the inception date of the Fund. Fund expenses, including management fees and other expenses were deducted. The growth of a $10,000 investment in the fund is hypothetical and for illustration purposes only.

Carbon Allowance Futures

Data as of 11/30/2021
Name Identifier Position Current Exposure($) % NAV
European Union Allowance (EUA) 2022 Future MOZ22 Comdty 51 4,379,441 101.39%
4,379,441 101%

Collateral and Currency Management

Data as of 11/30/2021
Name Identifier Position Current Exposure($) % NAV
Euro FX Futures ECZ1 Curncy 26 3,681,113 85.22%
EURO EUR 587,116 660,854 15.3%
USD Cash & Equivalents** USD 633,573 633,573 14.67%
4,975,540 115%

Holdings, carbon allowance futures, and collateral are subject to change.
**Includes USD cash deposits & cash in margin accounts ($4,314,686), and implied short USD exposure from Euro FX futures

Top 10 Holdings

Data as of 11/30/2021
Full Holdings .CSV
Rank Name % of Net Assets Ticker Identifier Type Shares Held Market Value($) Notional Value($)
1 Cash 84.35% Cash 3,622,311 3,622,311 0
2 EURO 15.39% Currency 587,116 660,854 0
3 EURO 0.26% Currency 9,741 10,964 0
4 ECX EMISSION DEC22 0.00% MOZ22 Future 51 0 4,347,302
5 EURO FX CURR FUT DEC21 0.00% ECZ1 Future 26 0 3,681,113

Holdings are subject to change.