Investment Strategy:

The KFA Global Carbon ETF (the “Fund”) seeks to provide a total return that, before fees and expenses, exceeds that of the IHS Markit Global Carbon Index (the ‘‘Index’’) over a complete market cycle. 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) and the Regional Greenhouse Gas Initiative (RGGI).

Global Carbon Allowance Market Highlights

  • According to IHS Markit, as of June 2020 the global price of carbon was $19.30 per ton of CO2. It is estimated that carbon allowance prices need to reach a range of $50 – $100 per ton of CO2 to achieve the emissions reductions goals of The Paris Agreement.1,2
  • Tightening emissions regulation may provide a positive catalyst for the performance of the global carbon allowance market.
  • As of December 2019, the three largest global carbon futures markets, tracked by IHS Markit’s Global Carbon Index, had a market size of $155.82 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
  • China’s emissions trading market is expected to launch by end of 2020. Once fully implemented, it will be the largest carbon allowance market in the world, which may provide an additional catalyst for the performance of the global carbon allowance market.

KRBN Features

  • Going long the price of carbon may support responsible investing and incentivize pollution reduction aligned with ESG 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.

1. IHS Markit, 6/30/2020
2. World Bank State and Trends of Carbon Pricing 2019
3. Financial Times, April 17, 2019 “Niche asset nears mainstream as investors warm to EU carbon market”

Fund Details

Data as of 01/15/2021
TickerKRBN
Primary Exchange NYSE
CUSIP500767678
ISINUS5007676787
Net Assets$18,993,189
Total Annual Fund Operating Expense 0.79%
Inception Date7/30/2020
Distribution FrequencyAnnual

Daily Performance

Data as of 01/15/2021
Premium Discount Chart
NAV
Net Asset Value$23.74 
Daily Change -4.32%
Price
Market Price $25.51 
Daily Change0.00%
30 Day Median Bid/Ask Spread 0.71%

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: 12/31/2020
Fund NAV Closing Price Index
1 Month10.78% 9.61% 9.86%
3 Month20.06% 18.13% 18.53%
6 Month 23.85%
Since Inception21.80% 23.15% 20.64%
Cumulative %
Data as of quarter end: 12/31/2020
Fund NAV Closing Price Index
Since Inception21.80% 23.15% 20.64%
Growth of $10,000
Data as of 01/14/2021

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.

Top 10 Holdings

Data as of 01/15/2021
Full Holdings .CSV
Rank Company Name % of Net Assets Ticker Identifier Type Shares Held Market Value($) Notional Value($)
1 Cash 57.36% Cash 10,894,843 10,894,843 0
2 EURO 26.22% Currency 4,117,943 4,979,616 0
3 EURO 9.67% Currency 1,518,782 1,836,584 0
4 SCHWAB SHORT-TER 6.75% SCHO US8085248628 Mutual Fund 24,950 1,281,931 0
5 CA CARBON ALLOW 21DEC21 0.00% ZCAZ21 Future 158 0 2,924,580
6 CA CARBON ALLOW 21DEC22 0.00% ZCAZ22 Future 41 0 795,400
7 EURO FX CURR FUT MAR21 0.00% ECH1 Future 55 0 8,313,594
8 ICE ECX EMISSION DEC21 0.00% MOZ21 Future 321 0 12,320,475
9 ICE ECX EMISSION DEC22 0.00% MOZ22 Future 27 0 1,043,485
10 RGGI VINTAGE 21 DEC21 0.00% ZRDZ21 Future 244 0 2,086,200

Holdings are subject to change.