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Carbon Strategy ETF
Active ETF
KARB
Payout Change
Pending
Price as of:
$28.165
+0.0
+0.0%
primary theme
N/A
KARB (ETF)
Carbon Strategy ETF
Payout Change
Pending
Price as of:
$28.165
+0.0
+0.0%
primary theme
N/A
KARB (ETF)
Carbon Strategy ETF
Payout Change
Pending
Price as of:
$28.165
+0.0
+0.0%
primary theme
N/A
Name
As of 05/03/2024Price
Aum/Mkt Cap
YIELD
Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.
Exp Ratio
Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.
Watchlist
Vitals
YTD Return
-13.4%
1 yr return
-12.0%
3 Yr Avg Return
N/A
5 Yr Avg Return
N/A
Net Assets
$514 K
Holdings in Top 10
94.6%
52 WEEK LOW AND HIGH
$28.2
$24.93
$38.97
Expenses
OPERATING FEES
Expense Ratio 1.31%
SALES FEES
Front Load N/A
Deferred Load N/A
TRADING FEES
Turnover N/A
Redemption Fee N/A
Min Investment
Standard (Taxable)
N/A
IRA
N/A
Fund Classification
Fund Type
Exchange Traded Fund
Name
As of 05/03/2024Price
Aum/Mkt Cap
YIELD
Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.
Exp Ratio
Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.
Watchlist
KARB - Profile
Distributions
- YTD Total Return -13.4%
- 3 Yr Annualized Total Return N/A
- 5 Yr Annualized Total Return N/A
- Capital Gain Distribution Frequency N/A
- Net Income Ratio N/A
- Dividend Yield 13.3%
- Dividend Distribution Frequency Annual
Fund Details
-
Legal NameCarbon Strategy ETF
-
Fund Family NameN/A
-
Inception DateSep 13, 2022
-
Shares OutstandingN/A
-
Share ClassN/A
-
CurrencyUSD
-
Domiciled CountryUS
Fund Description
The Fund is an actively managed exchange-traded fund (“ETF”) that seeks capital appreciation by gaining exposure to the global carbon credit market. The Fund invests in carbon credit futures contracts, which are commodity futures contracts linked to the value of emission allowances (“Carbon Futures”). The Fund also may invest in (i) ETFs that provide exposure to government or investment grade corporate fixed income securities with maturities up to 12 months; (ii) money market funds; and (iii) cash and cash equivalents, including foreign currency (“Collateral Instruments”). The Collateral Instruments are intended to provide liquidity and to serve as collateral for the Carbon Futures.
The Fund is an actively managed ETF that seeks to achieve its investment objective through its investments in Carbon Futures. The Fund invests in a portfolio of liquid Carbon Futures that require “physical delivery” of emission allowances issued under cap and trade regimes. A cap and trade regime is a regulatory program designed to limit, or cap, the total level of emissions of greenhouse gases, particularly carbon dioxide, by companies in regulated industries, such as manufacturers or energy producers. The regulator, such as a governmental entity or supranational organization, issues a limited number of annual emission allowances that allow companies to emit a certain amount of greenhouse gases. Companies are then taxed if they produce a higher level of emissions than allowed. If a company reduces its emissions levels, it can sell, or “trade,” unused emissions allowances to other companies on the open market. Over time, regulators lower the number of emissions allowances available each year, thereby lowering the total cap on emissions, making emissions allowances more expensive, thereby incentivizing regulated entities to reduce their emissions.
Futures contracts are contractual agreements to buy or sell a particular currency, commodity or financial instrument at a pre-determined price in the future. The Fund’s use of futures contracts will have the economic effect of financial leverage. Financial
leverage magnifies, sometimes significantly, the effect of any increase or decrease in the Fund’s exposure to the price swings of an asset class underlying such futures contracts and may cause the Fund’s net asset value (“NAV”) to experience greater volatility. As a result, the Fund will have the potential for greater gains, as well as the potential for greater losses, than if the Fund does not use futures or other derivatives that have a leveraging effect. When the Fund uses derivative instruments, the Fund will comply with SEC guidelines regarding derivatives instruments, and may hold a significant portion of its assets in cash and/or cash equivalents, including foreign currency.
The Fund invests in Carbon Futures from the United States and Europe. The Fund typically invests in Carbon Futures linked to the value of emissions allowances issued under the following cap and trade regimes: European Union Emissions Trading Scheme (“EUA”), California Carbon Allowance (“CCA”), Regional Greenhouse Gas Initiative (“RGGI”), and United Kingdom Emissions Trading Scheme (“UK ETS”) (each, a “Cap and Trade Regime”). As the global carbon credit market grows, the Fund may invest in Carbon Futures linked to emissions allowances issued under other cap and trade regimes. The Fund intends to hold foreign currency or invest in futures contracts on foreign currency in an amount that approximates the notional value of the Fund’s exposure to non-U.S. denominated Carbon Futures, such as those issued by the EUA and UK ETS. Exchange Traded Concepts, LLC, the Fund’s investment adviser (the “Adviser”), will generally seek to invest in Carbon Futures in weights similar to their trading volumes relative to the overall Carbon Futures market, although the Adviser may determine to increase or decrease such weights based on its expectations for how such trading volumes may change in the future.
The Fund will invest indirectly, via the Subsidiary (defined below), in Carbon Futures, which are standardized, liquid futures contracts. As the futures contracts approach expiration, they may be replaced by similar contracts that have a later expiration. This process is referred to as “rolling.” The Fund typically expects to invest in Carbon Futures that mature in December of the current year and of the following year, although the Fund may invest in Carbon Futures with other expiration dates. At times, Carbon Futures with a longer term to expiration may be priced higher than Carbon Futures with a shorter term to expiration, which is known as “contango.” The Adviser generally will attempt to minimize the negative impact from rolling Carbon Futures that are in contango, when possible, as doing so would result in the Fund selling the expiring contract at a lower price and buying a longer-term contract at a higher price, producing a negative roll yield. Conversely, Carbon Futures with a longer term to expiration may be priced lower than Carbon Futures with a shorter term to expiration, known as “backwardation.” Rolling Carbon Futures in backwardation generally involves selling an expiring contract at a higher price and buying a longer-term contract at a lower price, producing positive roll yield. However, there can be no guarantee that such a strategy will produce the desired results.
The Fund expects to gain exposure to Carbon Futures by investing in a wholly-owned and controlled subsidiary of the Fund organized under the laws of the Cayman Islands (the “Subsidiary”). The Adviser also serves as the investment adviser to the Subsidiary. The Fund’s investment in the Subsidiary is intended to provide the Fund with indirect exposure to Carbon Futures within the limits of current federal income tax laws applicable to investment companies such as the Fund, which limit the ability of investment companies to invest directly in Carbon Futures. The Subsidiary has the same investment objective as the Fund, but it may invest in Carbon Futures to a greater extent than the Fund. Except as otherwise noted, for purposes of this Prospectus, references to the Fund’s investments include the Fund’s indirect investments through the Subsidiary. Because the Fund intends to qualify for treatment as a regulated investment company (“RIC”) under the Internal Revenue Code of 1986, as amended (the “Code”), the size of the Fund’s investment in the Subsidiary will generally be limited to 25% of the Fund’s total assets, tested at the end of each fiscal quarter.
The CFTC has adopted certain requirements that subject registered investment companies and their advisers to regulation by the CFTC if a registered investment company invests more than a prescribed level of its net assets in CFTC-regulated futures or if a registered investment company markets itself as providing investment exposure to such instruments. Due to the Fund’s potential use of CFTC-regulated futures above CFTC Rule 4.5 limits, it will be considered a “commodity pool” under the Commodity Exchange Act upon commencement of operations.
The Fund is classified as a “non-diversified” investment company under the Investment Company Act of 1940, as amended (the “1940 Act”) and, therefore, may invest a greater percentage of its assets in a particular issuer than a diversified fund. The Fund may not concentrate its investments (i.e., hold more than 25% of its total assets) in any industry or group of related industries. However, the Fund expects to have significant exposure to Carbon Futures and/or emission allowances issued by cap and trade regimes (using the notional value of any futures in which it invests).
KARB - Performance
Return Ranking - Trailing
| Period | KARB Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| YTD | -13.4% | -21.4% | 55.2% | N/A |
| 1 Yr | -12.0% | -88.7% | 188.9% | N/A |
| 3 Yr | N/A* | -47.9% | 52.4% | N/A |
| 5 Yr | N/A* | -39.9% | 82.1% | N/A |
| 10 Yr | N/A* | -29.8% | 27.7% | N/A |
* Annualized
Return Ranking - Calendar
| Period | KARB Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| 2023 | -2.1% | -84.3% | 1912.1% | N/A |
| 2022 | N/A | -87.8% | 612.3% | N/A |
| 2021 | N/A | -88.2% | 438.4% | N/A |
| 2020 | N/A | -81.2% | 323.8% | N/A |
| 2019 | N/A | -37.6% | 55.7% | N/A |
Total Return Ranking - Trailing
| Period | KARB Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| YTD | -13.4% | -49.6% | 119.0% | N/A |
| 1 Yr | -12.0% | -88.7% | 188.9% | N/A |
| 3 Yr | N/A* | -47.9% | 52.4% | N/A |
| 5 Yr | N/A* | -39.9% | 82.1% | N/A |
| 10 Yr | N/A* | -29.8% | 27.7% | N/A |
* Annualized
Total Return Ranking - Calendar
| Period | KARB Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| 2023 | 9.2% | -84.3% | 1912.1% | N/A |
| 2022 | N/A | -87.8% | 612.3% | N/A |
| 2021 | N/A | -88.2% | 438.4% | N/A |
| 2020 | N/A | -81.2% | 323.8% | N/A |
| 2019 | N/A | -37.6% | 55.7% | N/A |
KARB - Holdings
Concentration Analysis
| KARB | Category Low | Category High | KARB % Rank | |
|---|---|---|---|---|
| Net Assets | 514 K | 346 K | 63.1 B | N/A |
| Number of Holdings | 5 | 1 | 846 | N/A |
| Net Assets in Top 10 | 615 K | 0 | 63.2 B | N/A |
| Weighting of Top 10 | 94.62% | 20.7% | 100.0% | N/A |
Top 10 Holdings
- First American Government Obligations Fund 94.47%
- EURO FX CURR FUT Mar24 0.69%
- CA Carbon Allow 24Dec24 0.55%
- RGGI Vintage 24 Dec24 0.41%
- ECX EMISSION Dec24 -1.49%
Asset Allocation
| Weighting | Return Low | Return High | KARB % Rank | |
|---|---|---|---|---|
| Cash | 99.85% | -81.87% | 100.00% | N/A |
| Other | 0.69% | -47.59% | 165.73% | N/A |
| Stocks | 0.00% | 0.00% | 92.26% | N/A |
| Preferred Stocks | 0.00% | 0.00% | 0.00% | N/A |
| Convertible Bonds | 0.00% | 0.00% | 3.89% | N/A |
| Bonds | 0.00% | 0.00% | 96.71% | N/A |
KARB - Expenses
Operational Fees
| KARB Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Expense Ratio | 1.31% | 0.10% | 3.08% | 55.79% |
| Management Fee | 0.75% | 0.00% | 1.75% | 66.67% |
| 12b-1 Fee | N/A | 0.00% | 1.00% | 20.78% |
| Administrative Fee | N/A | 0.02% | 0.45% | N/A |
Sales Fees
| KARB Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Front Load | N/A | 2.50% | 5.75% | N/A |
| Deferred Load | N/A | 1.00% | 4.00% | N/A |
Trading Fees
| KARB Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Max Redemption Fee | N/A | N/A | N/A | N/A |
Related Fees
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
| KARB Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Turnover | N/A | 0.00% | 460.74% | N/A |
KARB - Distributions
Dividend Yield Analysis
| KARB | Category Low | Category High | KARB % Rank | |
|---|---|---|---|---|
| Dividend Yield | 13.35% | 0.00% | 47.60% | 81.17% |
Dividend Distribution Analysis
| KARB | Category Low | Category High | Category Mod | |
|---|---|---|---|---|
| Dividend Distribution Frequency | Annual | Annually | Quarterly | Annually |
Net Income Ratio Analysis
| KARB | Category Low | Category High | KARB % Rank | |
|---|---|---|---|---|
| Net Income Ratio | N/A | -55.71% | 52.26% | N/A |
Capital Gain Distribution Analysis
| KARB | Category Low | Category High | Capital Mode | |
|---|---|---|---|---|
| Capital Gain Distribution Frequency | Daily | Daily | Daily |
Distributions History
| Date | Amount | Type |
|---|---|---|
| Dec 29, 2023 | $3.759 | OrdinaryDividend |
| Dec 30, 2022 | $0.153 | OrdinaryDividend |
