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 December 31, 2020 the global price of carbon was $24.05 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
  • As of December 31, 2020, the three largest global carbon futures markets, tracked by IHS Markit’s Global Carbon Index, had a market size of $260.79 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
  • 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.4

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, 12/31/2020
2. World Bank State and Trends of Carbon Pricing 2020
3. Financial Times, April 17, 2019 “Niche asset nears mainstream as investors warm to EU carbon market”
4. Past performance of carbon allowance does not indicate future results and may not be indicative of fund performance.

Fund Details

Data as of 03/04/2021
Primary Exchange NYSE
Net Assets$39,027,578
Total Annual Fund Operating Expense 0.79%
Inception Date7/30/2020
Distribution FrequencyAnnual

Daily Performance

Data as of 03/04/2021
Premium Discount Chart
Net Asset Value$26.92 
Daily Change 0.91%
Market Price $27.54 
Daily Change1.14%
30 Day Median Bid/Ask Spread

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

Cumulative %
Data as of: 02/28/2021
Fund NAV Closing Price Index
1 Month9.88% 8.80% 9.43%
3 Month21.37% 21.05% 20.65%
6 Month24.14% 24.37% 23.42%
Since Inception33.45% 36.00% 32.49%
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 03/04/2021

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.

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 03/04/2021
Name Identifier Position Current Exposure($) % NAV
European Union Allowance (EUA) 2021 Future MOZ21 Comdty 534 24,389,513 62.49%
California Carbon Allowance (CCA) Vintage 2021 Future ZCAZ21 Comdty 350 6,503,000 16.66%
Regional Greenhouse Gas Initiative (RGGI) Vintage 2021 Future ZRDZ21 Comdty 513 4,278,420 10.96%
European Union Allowance (EUA) 2022 Future MOZ22 Comdty 45 2,074,147 5.31%
California Carbon Allowance (CCA) Vintage 2022 Future CTIZ22 Comdty 83 1,611,860 4.13%
38,856,940 100%

Collateral and Currency Management

Data as of 03/04/2021
Name Identifier Position Current Exposure($) % NAV
EURO EUR 14,987,528 17,848,670 45.73%
Euro FX Futures ECH1 Curncy 55 8,227,656 21.08%
USD Cash & Equivalents** USD 7,074,944 7,074,944 18.13%
SCHWAB SHORT-TER SCHO 109,950 5,639,336 14.45%
38,790,606 99%

Holdings, carbon allowance futures, and collateral are subject to change.
**Includes USD cash deposits & cash in margin accounts ($15,302,601), and implied short USD exposure from Euro FX futures

Carbon Allowance Futures Breakdown

Data as of: 03/04/2021
EUA 2021 Future 62.5%
CCA 2021 Future 16.7%
RGGI 2021 Future 11.0%
EUA 2022 Future 5.3%
CCA 2022 Future 4.1%

Currency Exposure

Data as of: 03/04/2021
EUR 66.8%
USD 32.6%

Top 10 Holdings

Data as of 03/05/2021
Full Holdings .CSV
Rank Company Name % of Net Assets Ticker Identifier Type Shares Held Market Value($) Notional Value($)
1 EURO 40.07% Currency 14,987,528 17,848,670 0
2 Cash 34.71% Cash 15,461,416 15,461,416 0
3 SCHWAB SHORT-TER 12.66% SCHO US8085248628 Mutual Fund 109,950 5,639,336 0
4 EURO 12.56% Currency 4,695,946 5,592,409 0
5 CA CARBON ALLOW 21DEC21 0.00% ZCAZ21 Future 399 0 7,417,410
6 CA CARBON ALLOW 21DEC22 0.00% ZCAZ22 Future 95 0 1,845,850
7 EURO FX CURR FUT MAR21 0.00% ECH1 Future 55 0 8,191,563
8 ICE ECX EMISSION DEC21 0.00% MOZ21 Future 607 0 28,206,669
9 ICE ECX EMISSION DEC22 0.00% MOZ22 Future 51 0 2,390,568
10 RGGI VINTAGE 21 DEC21 0.00% ZRDZ21 Future 585 0 4,639,050

Holdings are subject to change.