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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 05/25/2023
Daily Net Asset Value (NAV) and Market Price
NAV $36.81
NAV Daily Change -1.76%
Market Price $36.73
Market Price Daily Change -1.32%
30 Day Median Bid/Ask Spread
0.21%
Distributions

Performance History

Cumulative %
Data as of: 04/30/2023
Fund NAV Closing Price Index
1 Month -2.12% -1.77% -1.63%
3 Month -1.30% -1.52% -0.27%
6 Month 9.16% 9.76% 10.57%
Since Inception 138.99% 139.29% 143.69%
Avg Annualized %
Data as of month end: 04/30/2023
Fund NAV Closing Price Index
1 Year -0.89% 0.47% 1.39%
Since Inception 37.22% 37.28% 38.20%
Avg Annualized %
Data as of quarter end: 03/31/2023
Fund NAV Closing Price Index
1 Year 4.43% 3.90% 5.90%
Since Inception 39.68% 39.56% 40.44%

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 05/25/2023

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 05/26/2023
Name Identifier Position Current Exposure ($) % NAV
European Union Allowance (EUA) 2023 Future MOZ23 Comdty 3,455 304,406,916 53.25%
California Carbon Allowance (CCA) Vintage 2023 Future LUDZ23 Comdty 4,998 158,986,380 27.81%
California Carbon Allowance (CCA) Vintage 2024 Future CDBZ24 Comdty 938 31,892,000 5.58%
Regional Greenhouse Gas Initiative (RGGI) Vintage 2023 Future LUIZ23 Comdty 2,031 28,027,800 4.9%
European Union Allowance (EUA) 2024 Future MOZ24 Comdty 300 27,771,117 4.86%
UK Allowance (UKA) 2023 Future UKEZ3 Comdty 314 20,558,487 3.6%
571,642,699 100%

Collateral and Currency Management

Data as of 05/26/2023
Name Identifier Position Current Exposure($) % NAV
STATE ST INST US GOV GVMXX 293,178,708 293,178,708 51.29%
Euro FX Futures ECM3 Curncy 1975 265,230,156 46.4%
EURO EUR 75,000,000 80,291,189 14.05%
BRITISH STERLING POUND GBP 17,400,000 21,458,434 3.75%
USD Cash & Equivalents** USD -87,510,855 -87,510,855 -15.31%
572,647,632 100%

Holdings, carbon allowance futures, and collateral are subject to change.
**Includes USD cash deposits & cash in margin accounts ($177,719,301), and implied short USD exposure from Euro FX futures

Carbon Allowance Futures
Breakdown

Data as of: 05/26/2023
EUA 2023 Future 53.2%
CCA 2023 Future 27.8%
CCA 2024 Future 5.6%
RGGI 2023 Future 4.9%
EUA 2024 Future 4.9%
UKA 2023 Future 3.6%

Currency Exposure
Breakdown

Data as of: 05/26/2023
EUR 60.5%
USD 36.0%
GBP 3.8%

Top 10 Holdings

Data as of 05/26/2023 Full Holdings .CSV
Rank Name % of Net Assets Ticker Identifier Type Shares Held Market Value($) Notional Value($)
1 STATE ST INST US GOV 51.29% GVMXX Money Market 293,178,708 293,178,708 0
2 Cash 25.75% Cash 147,229,467 147,229,467 0
3 EURO 14.05% Currency 75,000,000 80,291,189 0
4 EURO 4.56% Currency 24,361,481 26,080,164 0
5 BRITISH STERLING POUND 3.75% Currency 17,400,000 21,458,434 0
6 BRITISH STERLING POUND 0.60% Currency 2,778,487 3,426,551 0
7 EURO FX CURR FUT JUN23 0.00% ECM3 Future 1,975 0 265,230,156
8 RGGI VINTAGE 2023 DEC23 0.00% LUIZ23 Future 2,031 0 28,027,800
9 UK EMISS ALLOW FU DEC23 0.00% UKEZ3 Future 314 0 20,558,487
10 CA CARBON ALLOW 24DEC24 0.00% CDBZ24 Future 938 0 31,892,000

Holdings are subject to change.