Overview

Performance

Distributions

Growth of $10,000

Holdings

Fund Documents

Overview

Investment Strategy:

The KraneShares Global Carbon Strategy ETF (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.

Currently, the index covers the major European and North American cap-and-trade programs: European Union Allowances (EUA), California Carbon Allowances (CCA), the Regional Greenhouse Gas Initiative (RGGI), and United Kingdom Allowances (UKA).

Global Carbon Allowance Market Highlights

  • According to IHS Markit, as of June 30, 2023 the global price of carbon was $52.71 per ton of CO2.1 It is estimated that carbon allowance prices need to reach $147 per ton of CO2 to meet a 1.5°C global warming limit.2
  • In 2023, the four largest global carbon futures markets tracked by S&P Global Carbon Credit Index, had an annual trading volume of $754.1 billion.3
  • KRBN is the first, largest, and most liquid publicly listed carbon allowance ETF in the world.4
  • In April 2019, The Financial Times reported that European carbon allowances within the European Union Emissions Trading System were the world’s top-performing commodity over the past two years.5
  • In 2021, China launched its carbon allowance market, expected to be the largest in the world, projected to cover ~4 billion metric tons of CO2.6

KRBN Features

  • Going long the price of carbon may support responsible investing and incentivize pollution reduction aligned with impact investment goals.
  • Can provide potential portfolio diversification due to the global carbon futures markets’ historically low correlation to other asset classes.1 **
  • KRBN may be appropriate for investors who are concerned about the increase in cost of carbon emissions on their portfolios. As the cost of carbon emissions rise, KRBN typically benefits, while companies with heavy carbon footprints typically suffer.3
  • May be a beneficiary of tightening carbon emissions regulation worldwide.

*Formerly the KraneShares Global Carbon ETF.
**Diversification does not ensure a profit or guarantee against a loss.

1. Data from IHS Markit as of 6/30/2023.
2. IHS Markit, “UN-affiliated Net-Zero Asset Owner Alliance calls for global carbon price”, Jul 7, 2021.
3. Data from Bloomberg as of 12/31/2023.
4. Data from Bloomberg, as of 3/31/2023.
5. Financial Times, April 17, 2019 “Niche asset nears mainstream as investors warm to EU carbon market”.
6. ICAP, "China National ETS," retrieved 3/31/2023.

Premium Discount Chart

Daily Performance

Data as of 04/12/2024
Daily Net Asset Value (NAV) and Market Price
NAV $33.21
NAV Daily Change 2.66%
Market Price $33.16
Market Price Daily Change 2.03%
30 Day Median Bid/Ask Spread
0.45%

Performance History

Cumulative %
Data as of: 03/31/2024
Fund NAV Closing Price Index
1 Month 5.08% 4.31% 5.04%
3 Month -15.62% -15.70% -15.69%
6 Month -11.85% -11.98% -12.46%
YTD -15.62% -15.70% -15.69%
Since Inception 104.69% 103.90% 109.60%
Avg Annualized %
Data as of quarter end: 03/31/2024
Fund NAV Closing Price Index
1 Year -16.16% -16.29% -15.39%
3 Year 12.98% 12.44% 13.96%
Since Inception 21.53% 21.40% 22.31%

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.

Distribution History

2024 Distributions
Ex-Date Record Date Payable Date Amount
03/26/2024 03/27/2024 03/28/2024 0.000000

Future calendar dates are subject to change. There is no guarantee that dividends will be paid. Past distributions are not indicative of future trends. This material is provided for educational purposes only and does not constitute investment advice.

Distributions are issued to brokers on the payable date, and are subject to broker payment schedules.

2023 Distributions
Ex-Date Record Date Payable Date Amount
06/28/2023 06/29/2023 06/30/2023 1.641497
09/27/2023 09/28/2023 09/29/2023 0.000000
12/18/2023 12/19/2023 12/20/2023 1.130139
2022 Distributions
Ex-Date Record Date Payable Date Amount
12/28/2022 12/29/2022 12/30/2022 8.355256
2021 Distributions
Ex-Date Record Date Payable Date Amount
12/29/2021 12/30/2021 12/31/2021 0.247810

Growth of $10,000

Data as of 04/12/2024

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. Fund performance data used in this chart is based on Fund NAV and represents past performance. Past performance does not guarantee future results.

Carbon Allowance Futures

Data as of 04/12/2024
Name Identifier Position Current Exposure ($) % NAV
European Union Allowance (EUA) 2024 Future MOZ24 Comdty 2,315 176,081,653 53.83%
California Carbon Allowance (CCA) Vintage 2024 Future CDBZ24 Comdty 2,053 82,920,670 25.35%
Regional Greenhouse Gas Initiative (RGGI) Vintage 2024 Future RJOZ24 Comdty 1,083 21,086,010 6.45%
California Carbon Allowance (CCA) Vintage 2025 Future BCYZ25 Comdty 384 16,531,200 5.05%
European Union Allowance (EUA) 2025 Future MOZ25 Comdty 203 16,033,869 4.9%
UK Allowance (UKA) 2024 Future UKEZ4 Comdty 311 14,746,540 4.51%
327,399,941 100%

Collateral and Currency Management

Data as of 04/12/2024
Name Identifier Position Current Exposure($) % NAV
STATE ST INST US GOV GVMXX 177,474,066 177,474,066 54.25%
Euro FX Futures ECM4 Curncy 1210 161,345,938 49.32%
EURO EUR 27,000,000 28,702,336 8.77%
BRITISH STERLING POUND GBP 11,100,000 13,803,395 4.22%
USD Cash & Equivalents** USD -55,240,002 -55,240,002 -16.89%
326,085,732 100%

Holdings, carbon allowance futures, and collateral are subject to change.
**Includes USD cash deposits & cash in margin accounts ($106,105,936), and implied short USD exposure from Euro FX futures

Carbon Allowance Futures
Breakdown

Data as of: 04/12/2024
EUA 2024 Future 53.8%
CCA 2024 Future 25.3%
RGGI 2024 Future 6.4%
CCA 2025 Future 5.1%
EUA 2025 Future 4.9%
UKA 2024 Future 4.5%

Currency Exposure
Breakdown

Data as of: 04/12/2024
EUR 58.1%
USD 37.4%
GBP 4.2%

Top 10 Holdings

Data as of 04/15/2024 Full Holdings .CSV
Rank Name % of Net Assets Ticker Identifier Type Shares Held Market Value($) Notional Value($)
1 STATE ST INST US GOV 54.92% GVMXX Money Market 177,474,066 177,474,066 0
2 EURO 17.02% Currency 51,748,731 54,993,338 0
3 Cash 13.61% Cash 43,989,797 43,989,797 0
4 EURO 8.88% Currency 27,000,000 28,692,880 0
5 BRITISH STERLING POUND 4.51% Currency 11,700,000 14,567,096 0
6 BRITISH STERLING POUND 1.05% Currency 2,736,722 3,407,358 0
7 CA CARBON ALLOW 24DEC24 0.00% CDBZ24 Future 2,053 0 82,469,010
8 CA CARBON ALLOW 25DEC25 0.00% BCYZ25 Future 384 0 16,450,560
9 ECX EMISSION DEC24 0.00% MOZ24 Future 2,315 0 173,563,496
10 ECX EMISSION DEC25 0.00% MOZ25 Future 203 0 15,806,387

Holdings are subject to change.