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Overview

Performance

Growth of $10,000

Holdings

Fund Documents

Overview

Investment Strategy:

KSET tracks the S&P GSCI Global Voluntary Carbon Liquidity Weighted Index, which provides broad coverage of the voluntary carbon market by tracking carbon offset futures contracts. These futures contracts include Nature-Based Global Emission Offsets (N-GEOs) and Global Emission Offsets (GEOs), which trade through the CME Group, the world's largest financial derivatives exchange. KSET is designed to dynamically add additional offset markets as they reach scale.

Carbon Offset Futures Highlights:​

  • According to CME Group, the voluntary market will need to scale by roughly 15 times its current size in order to achieve global emission goals. Establishing a physically delivered futures market is among their key recommendations for bringing this market to scale.1
  • N-GEOs follow the industry-leading Verified Carbon Standard (VCS) for Agriculture, Forestry, and Other Land Use (AFOLU) projects and require additional certification of Verra Registry’s stringent Climate Community and Biodiversity (CCB) Standard, which identifies projects that simultaneously address climate change, support local communities and smallholders, and conserve biodiversity.
  • GEOs offset criteria has been vetted for years by the UN specialized agency, International Civil Aviation Organization (ICAO), for use in the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).2

KSET Features:

  • Provides investors access to global carbon offset futures contracts, previously unavailable through an ETF3
  • Seeks to provide investors with access to validated instruments (GEOs and N-GEOs) for the growing global voluntary emissions market​
  • Based on offset projects that have been thoroughly vetted by top carbon offset registries​
  • Can provide potential portfolio diversification*, as climate-focused investments may act as a differentiated and non-correlated source of return that are not driven by the economic cycle​
  • Designed to dynamically add new markets as they hit scale in an evolving investible universe​
  • May be a beneficiary of increasing demand for offsets as the global economy decarbonizes​

*Diversification does not ensure a profit or guarantee against a loss.
​ 1. CME Group, "Finding a Solution for Global Carbon Offsets Pricing", Jan 26, 2021.
2. CME Group, "CBL Nature-Based Global Emissions Offset (N-GEO) and CBL Global Emissions Offset (GEO) Futures ‒ Frequently Asked Questions," Jun 21 2021.
3. Data from Bloomberg as of 4/25/2022​.

Premium Discount Chart

Daily Performance

Data as of 01/26/2023
Daily Net Asset Value (NAV) and Market Price
NAV $6.15
NAV Daily Change 0.67%
Market Price $5.98
Market Price Daily Change -0.58%
30 Day Median Bid/Ask Spread
3.18%
Distributions

Performance History

Cumulative %
Data as of: 12/31/2022
Fund NAV Closing Price Primary Index Secondary Index
1 Month -20.26% -21.27% -18.72% -18.72%
3 Month -48.76% -49.36% -46.20% -46.20%
6 Month -51.35% -51.76% -43.12%
Since Inception* -61.82% -62.18% -44.24%
Cumulative %
Data as of quarter end: 12/31/2022
Fund NAV Closing Price Primary Index Secondary Index
Since Inception* -61.82% -62.18% -44.24%

Index Definitions:

KSET was launched as an actively-managed ETF, and on August 1, 2022, the Fund changed into a passive, index-tracking ETF. During the period where the Fund was actively-managed, KSET was benchmarked to the IHS Markit Global Carbon Index, but did not track this Index. After becoming passively-managed, KSET began tracking its Primary Index, the S&P GSCI Global Voluntary Carbon Liquidity Weighted Index. The Secondary Index consists of the IHS Markit Global Carbon Index from the inception of the Fund through July 31, 2022, and the S&P GSCI Global Voluntary Carbon Liquidity Weighted Index going forward. Future performance may be different than past performance due to changes, including investment objectives and principal investment strategies. Additionally, before August 1, 2022, the Fund previously had an investment strategy of seeking capital appreciation and now seeks to track the performance of the Primary Index before fees and expenses.

*Since Inception refers to performance since the inception date of the Fund, and for the Primary Index, it refers to performance since the conversion of the objective to index tracking on August 1, 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.

Growth of $10,000

Data as of 01/26/2023

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 Emission Offset Futures

Data as of 01/27/2023
Name Identifier Position Current Exposure($) % NAV
CBL Nature-Based Global Emission Offset (NGO) 2023 Future LGOZ3 Comdty 552 1,915,440 77.91%
CBL Global Emission Offset (GEO) 2023 Future UGEZ3 Comdty 199 471,630 19.18%
2,387,070 97%

Collateral and Currency Management

Data as of 01/27/2023
Name Identifier Position Current Exposure($) % NAV
USD Cash & Equivalents** USD 1,883,381 1,883,381 76.6%
STATE ST INST US GOV GVMXX 500,000 500,000 20.34%
2,383,381 97%

Holdings, futures, and collateral are subject to change.
**Includes USD cash deposits & cash in margin accounts ($1,883,381)

Top 10 Holdings

Data as of 01/27/2023 Full Holdings .CSV
Rank Name % of Net Assets Ticker Identifier Type Shares Held Market Value($) Notional Value($)
1 Cash 79.02% Cash 1,883,381 1,883,381 0
2 STATE ST INST US GOV 20.98% GVMXX Money Market 500,000 500,000 0
3 CBL GB EMIS OFFSE DEC23 0.00% UGEZ3 Future 199 0 471,630
4 CBL NB G EMIS OFF DEC23 0.00% LGOZ3 Future 552 0 1,915,440

Holdings are subject to change.