KSET

KraneShares Global Carbon Offset Strategy ETF

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Investment Strategy:

KSET 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​.

Fund Details

Data as of 05/20/2022
Ticker KSET
Primary Exchange NYSE
CUSIP 500767538
ISIN US5007675383
Net Assets $9,582,020
Total Annual Fund Operating Expense 0.79%
Inception Date 04/27/2022
Distribution Frequency Annual

Daily Performance

Data as of 05/20/2022
Premium Discount Chart
NAV
Net Asset Value$23.95 
Daily Change 1.32%
Price
Market Price $24.12 
Daily Change 1.77%
30 Day Median Bid/Ask Spread
 
0.93%

The ETF’s 30 Day Median Bid-Ask Spread is calculated by identifying the ETF’s national best bid and national best offer ("NBBO") as of the end of each 10 second interval during each trading day of the last 30 calendar days and dividing the difference between each such bid and offer by the midpoint of the NBBO. The median of those values is identified and that value is expressed as a percentage rounded to the nearest hundredth.

Performance History

Distributions
Cumulative %
Data as of: 04/30/2022
Fund NAV Closing Price Index
1 Month
3 Month
6 Month
Since Inception -0.72% -0.44% -5.48%
Cumulative %
Data as of quarter end: 03/31/2022
Fund NAV Closing Price Index
Since Inception

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.

Carbon Emission Offset Futures

Data as of 05/20/2022
Name Identifier Position Current Exposure($) % NAV
CBL Nature-Based Global Emission Offset (NGO) 2022 Future LGOZ2 Comdty 760 8,253,600 86.14%
CBL Global Emission Offset (GEO) 2022 Future UGEZ2 Comdty 250 1,195,000 12.47%
9,448,600 99%

Collateral and Currency Management

Data as of 05/20/2022
Name Identifier Position Current Exposure($) % NAV
USD Cash & Equivalents** USD 9,582,021 9,582,021 100%
9,582,021 100%

Holdings, futures, and collateral are subject to change.
**Includes USD cash deposits & cash in margin accounts ($9,582,021)

Top 10 Holdings

Data as of 05/20/2022
Full Holdings .CSV
Rank Name % of Net Assets Ticker Identifier Type Shares Held Market Value($) Notional Value($)
1 Cash 100.00% Cash 9,582,021 9,582,021 0
2 CBL GB EMIS OFFSE DEC22 0.00% UGEZ2 Future 250 0 1,195,000
3 CBL NB G EMIS OFF DEC22 0.00% LGOZ2 Future 760 0 8,253,600

Holdings are subject to change.