KraneShares European Carbon Allowance Strategy ETF*

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Investment Strategy:

The KraneShares European Carbon Allowance Strategy 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:

*Formerly the KraneShares European Carbon Allowance ETF

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 10/04/2022
Ticker KEUA
Primary Exchange NYSE
CUSIP 500767561
ISIN US5007675615
Net Assets $16,282,605
Total Annual Fund Operating Expense 0.78%
Inception Date 10/5/2021
Distribution Frequency Annual

Daily Performance

Data as of 10/04/2022
Premium Discount Chart
Net Asset Value$23.26 
Daily Change 1.85%
Market Price $23.25 
Daily Change 1.53%
30 Day Median Bid/Ask Spread

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

Cumulative %
Data as of: 09/30/2022
Fund NAV Closing Price Index
1 Month -18.36% -20.12% -18.75%
3 Month -29.20% -29.47% -30.66%
6 Month -19.61% -20.95% -23.31%
Since Inception -7.36% -8.68% -12.12%
Cumulative %
Data as of quarter end: 09/30/2022
Fund NAV Closing Price Index
Since Inception -7.36% -8.68% -12.12%
Growth of $10,000
Data as of 10/04/2022

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 10/04/2022
Name Identifier Position Current Exposure($) % NAV
European Union Allowance (EUA) 2022 Future MOZ22 Comdty 249 16,643,101 102.21%
16,643,101 102%

Collateral and Currency Management

Data as of 10/04/2022
Name Identifier Position Current Exposure($) % NAV
USD Cash & Equivalents** USD 15,816,731 15,816,731 97.14%
Euro FX Futures ECZ2 Curncy 2 251,313 1.54%
EURO EUR 101,035 100,596 0.62%
16,168,640 99%

Holdings, carbon allowance futures, and collateral are subject to change.
**Includes USD cash deposits & cash in margin accounts ($16,068,044), and implied short USD exposure from Euro FX futures

Top 10 Holdings

Data as of 10/04/2022
Full Holdings .CSV
Rank Name % of Net Assets Ticker Identifier Type Shares Held Market Value($) Notional Value($)
1 Cash 76.56% Cash 12,466,569 12,466,569 0
2 EURO 22.82% Currency 3,731,678 3,715,442 0
3 EURO 0.62% Currency 101,035 100,596 0
4 ECX EMISSION DEC22 0.00% MOZ22 Future 249 0 16,590,579
5 EURO FX CURR FUT DEC22 0.00% ECZ2 Future 2 0 251,313

Holdings are subject to change.