News / Media

KraneShares Global Carbon ETF (NYSE: KRBN) Adds United Kingdom Carbon Allowances

NEW YORK, Dec. 15, 2021 /PRNewswire/ — Krane Funds Advisors, LLC, (“KraneShares“) an asset management firm known for its global exchange-traded funds (ETFs) and innovative investment strategies, announced that the KraneShares Global Carbon Strategy ETF (NYSE: KRBN) now includes United Kingdom carbon allowance futures.

KRBN’s new base weightings are as follows:

  • European Union Allowances (EUA) – 60%
  • California Carbon Allowances (CCA) – 30%
  • Regional Greenhouse Gas Initiative Allowances (RGA) – 5%
  • United Kingdom Allowances (UKA) – 5%

KRBN is benchmarked to IHS Markit’s Global Carbon Index, which offers broad coverage of cap-and-trade carbon allowances by tracking the most traded carbon credit futures contracts. The index introduces a new measure for hedging risk and going long the price of carbon while supporting responsible investing. UKAs were added to the IHS Markit Global Carbon Index, and subsequently KRBN, following its 2021 rebalance on November 30. New carbon futures markets are eligible for inclusion after they meet accessibility, liquidity, maturity criteria.

“KRBN has been one of the top ten ETF launches in the United States in terms of inflows since inception, as reported by Bloomberg,1” said Luke Oliver, KraneShares Managing Director and Head of Strategy. “Additionally, the fund has seen strong performance, returning 100.12% year-to-date. We believe the inflows and performance are driven by a collective global realization that the price of carbon emissions needs to be higher in order to realize the goals of the Paris Climate Agreement and stave off the detrimental effects of climate change.”

For more information about KRBN, please visit https://www.kraneshares.com/krbn or email [email protected].

KRBN Performance History as of 12/8/21

Avg Annualized %
1 YrSince Inception
Fund NAV117.83%92.02%
Closing Price112.86%91.81%
Index117.21%91.05%

Total annual fund operating expense: 0.79%. Fund inception 7/30/2020     

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. For performance data current to the most recent month end, please visit our website at www.kraneshares.com/krbn.

About KraneShares
Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. Our suite of China-focused ETFs provides investors with solutions to capture China’s importance as an essential element of a well-designed investment portfolio. We strive to deliver innovative, first-to-market strategies developed based on our strong partnerships and deep knowledge of investing. We help investors stay up to date on global market trends and aim to provide meaningful diversification. Krane Funds Advisors, LLC, is a signatory of the United Nations-supported Principles for Responsible Investing (UN PRI). The firm is majority owned by China International Capital Corporation (CICC). 

About Climate Finance Partners
Climate Finance Partners (CLIFI) serves as the non-discretionary subadvisor to KRBN. CLIFI delivers innovative climate finance solutions and investment products to address capital needs for emerging environmental challenges. CLIFI is led by a team of investment professionals with deep experience in the fields of traditional investment and environmental finance. The Advisory Board is Chaired by Nobel Laureate, Robert Engle.

Citations

1. As of 12/2/2021, KRBN is a top 10 ETF launch based on year-to-date AUM inflow data from Bloomberg for all US ETF launches since 1/1/2020.

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