KEUA

📎 Investment Objective

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

✨ Key Features

• Provides exposure to the European carbon credit market through EUA futures contracts
• Tracks the IHS Markit Carbon EUA Index, which measures the performance of a portfolio of EUA futures
• Aims to offer investors a way to gain exposure to the price movements of European carbon allowances
• Relatively new fund with limited performance history

⚠️ Primary Risks

• Commodity risk: The value of the fund's investments in EUA futures contracts may be volatile and subject to fluctuations in the underlying commodity prices
• Regulatory risk: Changes in environmental regulations or the EU ETS could impact the demand and pricing of carbon allowances
• Liquidity risk: The carbon credit futures market may experience periods of illiquidity, which could affect the fund's ability to accurately track its index
• Tracking error risk: The fund may not perfectly track the performance of its underlying index

👤 Best For

This ETF may be suitable for investors seeking exposure to the European carbon credit market as part of a diversified portfolio. Investors should have a higher risk tolerance and a longer-term investment horizon to account for the potential volatility in the carbon allowance futures market.