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 10/23/2020
TickerKRBN
Primary Exchange NYSE
CUSIP500767678
ISINUS5007676787
Net Assets$7,926,868
Total Annual Fund Operating Expense 0.79%
Inception Date7/30/2020
Distribution FrequencyAnnual

Daily Performance

Data as of 10/23/2020
Premium Discount Chart
NAV
Net Asset Value$19.82 
Daily Change 3.74%
Price
Closing Price $20.26 
Daily Change4.38%

Performance History

Distributions
Cumulative %
Data as of: 09/30/2020
Fund NAV Closing Price Index
1 Month-5.63% -4.66% -5.19%
3 Month 4.49%
6 Month
Since Inception1.45% 4.25% 1.79%
Cumulative %
Data as of quarter end: 09/30/2020
Fund NAV Closing Price Index
Since Inception1.45% 4.25% 1.79%

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 10/23/2020
Full Holdings .CSV
RankCompany Name% of Net AssetsTickerShares HeldMarket Value($)
1
CASH
40.07%3,176,4733,176,473
2
KFA CARBON CFC (138000)
28.78%117,6382,281,001
3
EURO
27.63%1,850,4462,190,085
4
SCHWAB SHORT-TER
3.57%SCHO5,500282,920

Holdings are subject to change.