Menu

Overview

Performance

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 December 31, 2021 the global price of carbon was $51.45 per ton of CO2. It is estimated that carbon allowance prices need to reach $147 per ton of CO2 to meet a 1.5°C global warming limit1,2
  • As of December 2021, the four largest global carbon futures markets tracked by IHS Markit’s Global Carbon Index, had an annual trading volume of $683.9 billion.1
  • 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.3,4
  • In 2021, China launched its carbon allowance market, expected to be the largest in the world, projected to cover ~3.3 billion CO2.4

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

1. IHS Markit, 12/31/2021
2. Financial Times, “Global Carbon Pricing, Too Important to Leave to Governments”, Jul 7, 2021.
3. Financial Times, April 17, 2019 “Niche asset nears mainstream as investors warm to EU carbon market”
4. Environmental Defense Fund, “China’s National ETS Open for Business”, Jan 5, 2021; World Bank State of Carbon Markets, June 2019.

Premium Discount Chart

Daily Performance

Data as of 02/03/2023
Daily Net Asset Value (NAV) and Market Price
NAV $39.76
NAV Daily Change -0.13%
Market Price $39.87
Market Price Daily Change 0.08%
30 Day Median Bid/Ask Spread
0.19%
Distributions

Performance History

Cumulative %
Data as of: 01/31/2023
Fund NAV Closing Price Index
1 Month 6.38% 8.45% 6.69%
3 Month 10.60% 11.45% 10.86%
6 Month 9.02% 9.80% 11.18%
Since Inception 142.12% 142.98% 144.35%
Avg Annualized %
Data as of month end: 01/31/2023
Fund NAV Closing Price Index
1 Year -6.80% -7.22% -5.07%
Since Inception 42.24% 42.44% 42.76%
Avg Annualized %
Data as of quarter end: 12/31/2022
Fund NAV Closing Price Index
1 Year -10.51% -12.39% -8.49%
Since Inception 40.38% 39.47% 40.74%

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.

Growth of $10,000

Data as of 02/03/2023

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 02/03/2023
Name Identifier Position Current Exposure ($) % NAV
European Union Allowance (EUA) 2023 Future MOZ23 Comdty 3,763 381,153,797 56.73%
California Carbon Allowance (CCA) Vintage 2023 Future LUDZ23 Comdty 5,440 163,036,800 24.27%
UK Allowance (UKA) 2023 Future UKEZ3 Comdty 341 34,625,555 5.15%
European Union Allowance (EUA) 2024 Future MOZ24 Comdty 323 34,172,027 5.09%
California Carbon Allowance (CCA) Vintage 2024 Future CDBZ24 Comdty 1,017 32,482,980 4.83%
Regional Greenhouse Gas Initiative (RGGI) Vintage 2023 Future LUIZ23 Comdty 2,223 29,966,040 4.46%
675,437,199 101%

Collateral and Currency Management

Data as of 02/03/2023
Name Identifier Position Current Exposure($) % NAV
Euro FX Futures ECH3 Curncy 2350 318,087,188 47.34%
STATE ST INST US GOV GVMXX 190,433,459 190,433,459 28.34%
EURO EUR 80,058,176 86,923,385 12.94%
USD Cash & Equivalents** USD 45,972,925 45,972,925 6.84%
BRITISH STERLING POUND GBP 24,000,000 29,056,745 4.32%
670,473,702 100%

Holdings, carbon allowance futures, and collateral are subject to change.
**Includes USD cash deposits & cash in margin accounts ($364,060,113), and implied short USD exposure from Euro FX futures

Carbon Allowance Futures
Breakdown

Data as of: 02/03/2023
EUA 2023 Future 56.7%
CCA 2023 Future 24.3%
UKA 2023 Future 5.2%
EUA 2024 Future 5.1%
CCA 2024 Future 4.8%
RGGI 2023 Future 4.5%

Currency Exposure
Breakdown

Data as of: 02/03/2023
EUR 60.3%
USD 35.2%
GBP 4.3%

Top 10 Holdings

Data as of 02/03/2023 Full Holdings .CSV
Rank Name % of Net Assets Ticker Identifier Type Shares Held Market Value($) Notional Value($)
1 Cash 44.54% Cash 299,266,342 299,266,342 0
2 STATE ST INST US GOV 28.34% GVMXX Money Market 190,433,459 190,433,459 0
3 EURO 15.35% Currency 95,000,000 103,146,511 0
4 EURO 6.03% Currency 37,307,968 40,507,229 0
5 BRITISH STERLING POUND 4.32% Currency 24,000,000 29,056,745 0
6 BRITISH STERLING POUND 1.41% Currency 7,818,772 9,466,170 0
7 CA CARBON ALLOW 24DEC24 0.00% CDBZ24 Future 1,017 0 32,482,980
8 CALCARBALLOWV2023 DEC23 0.00% LUDZ23 Future 5,440 0 163,036,800
9 ECX EMISSION DEC23 0.00% MOZ23 Future 3,763 0 381,153,797
10 ECX EMISSION DEC24 0.00% MOZ24 Future 323 0 34,172,027

Holdings are subject to change.