KCCA

📎 Investment Objective

The KraneShares California Carbon Allowance Strategy ETF (KCCA) seeks to provide investment results that, before fees and expenses, correspond generally to the performance of the IHS Markit Carbon CCA Index.

✨ Key Features

• Provides exposure to the California carbon allowances market
• Invests in a portfolio of futures contracts on carbon allowances
• Seeks to track the performance of the IHS Markit Carbon CCA Index
• Relatively new fund with limited performance history

⚠️ Primary Risks

• Commodity risk: The value of the fund's investments in futures contracts may be volatile and subject to market fluctuations
• Regulatory risk: Changes in government regulations or policies related to the California Cap-and-Trade Program could impact the fund's performance
• Tracking error risk: The fund may not perfectly track the underlying index due to various factors
• Liquidity risk: The carbon allowances futures market may have limited liquidity, which could affect the fund's ability to buy or sell positions

👤 Best For

This ETF may be suitable for investors seeking exposure to the California carbon allowances market as part of a diversified portfolio. Investors should have a high risk tolerance and understand the unique risks associated with commodity futures and environmental markets.