KRBN Profile
The KraneShares Global Carbon ETF is designed to provide investors with exposure to carbon credit futures, aiming to mirror the performance of a specific index dedicated to this market. The ETF's strategy involves maintaining a portfolio that closely aligns with the carbon credit futures included in the index. These futures are linked to emission allowances, which are integral to cap-and-trade systems implemented to regulate and reduce greenhouse gas emissions.
The index tracked by the fund is engineered to reflect the performance of a selection of liquid carbon credit futures contracts that require physical delivery of emission allowances. These allowances are issued under various cap-and-trade programs worldwide, which are designed to cap overall emissions and allow for the trading of emission permits among regulated entities. The index focuses on liquid contracts to ensure efficient tracking and execution within the carbon market.
The fund's investment approach targets the carbon credit futures market, which is a key component of global efforts to address climate change through market-based mechanisms. By investing in futures contracts tied to carbon emissions, the ETF offers a way for investors to gain exposure to the evolving carbon trading markets and support the broader goals of environmental sustainability.
The KraneShares Global Carbon ETF operates as a non-diversified fund, concentrating its investments in carbon credit futures. This focus allows it to provide targeted exposure to the carbon market, a sector increasingly recognized for its role in combating climate change. Investors in the ETF can engage with the carbon trading ecosystem and participate in the financial implications of global carbon regulation policies.
|
