New York, NY /PRNewswire/ - Global X ETFs, the New York-based provider of exchange-traded funds (ETFs), today announced the launch of the Global X Carbon Credits Strategy ETF (NTRL). This fund, which invests in a basket of carbon credit or allowance futures across geographies, is Global X's latest addition to its growing suite of thematic-based funds.
As the concentration of greenhouse gases in the atmosphere increases, decarbonization has become a major priority for policymakers and investors alike. Carbon credits, also known as carbon allowances, are an emerging tool in the fight against climate change. These tradeable permits are issued by governments and allow the holder the right to emit one unit of emission per credit, generally one ton of carbon dioxide (CO2). Under these cap-and-trade programs, where regulators can set limits or caps on a company's carbon emissions, carbon credits can be exchanged between companies.
NTRL seeks to capture this burgeoning approach to addressing climate change by providing exposure to carbon allowance futures across four geographies: Europe (through ICE EUA contracts), the United Kingdom (ICE UK Allowance contracts), California (ICE California Carbon Allowance contracts), and Northeast United States (ICE Regional Greenhouse Gas Initiative contracts).
"The pressure to meet Paris Agreement-aligned emissions reduction commitments is intensifying, and regulators worldwide are looking to tighten emissions caps, potentially increasing the scarcity and price of carbon allowances." said Pedro Palandrani, Director of Research at Global X ETFs. "With the launch of NTRL, Global X is leveraging its expertise in thematic investing to offer investors exposure to these potential price increases as well as possible portfolio diversification when combined with traditional asset classes."
The Global X Carbon Credits Strategy ETF (NTRL) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the ICE Global Carbon Futures Index (ICERBN Index).The fund has an expense ratio of 0.39%.
About Global X ETFs
Global X ETFs was founded in 2008. For more than a decade, our mission has been empowering investors with unexplored and intelligent solutions. Our product lineup features over 100 ETF strategies and over $39 billion in assets under management.i While we are widely recognized for our Thematic Growth, Income, Commodity and International Access ETFs, we also offer Core, Risk Management, Digital Asset, and other solutions to suit a range of investment objectives. Explore our ETFs, research and insights, and more at www.globalxetfs.com.
Global X is a member of Mirae Asset Financial Group, a global leader in financial services, with more than $520 billion in assets under management worldwide.ii Mirae Asset has an extensive global ETF platform ranging across the U.S., Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea, and Vietnam with over $80 billion in assets under management.iii
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the fund.
Investing involves risk, including the possible loss of principal. Diversification does not ensure a profit or guarantee against a loss. The Fund invests in carbon credit futures. The price and performance of futures may differ from the current price of carbon credits. These differences could be significant. Futures are subject to margin requirements, collateral requirements and other limits that may prevent the ETF from achieving its objective. Margin requirements for futures and costs associated with rolling (buying and selling) futures may have a negative impact on the fund's performance and its ability to achieve its investment objective.
The Fund relies on the existence of cap and trade regimes. There is no assurance that cap and trade programs will continue to exist. Cap and trade may not prove to be an effective method of reducing greenhouse gas emissions. As a result, or due to other factors, cap and trade programs may be terminated or may not be renewed upon their expiration.
The Fund expects to gain Carbon Futures exposure by investing in a subsidiary of the Fund organized under the laws of the Cayman Islands. The Subsidiary is not registered under the 1940 Act, and, unless otherwise noted in the prospectus, is not subject to all the investor protections of the 1940 Act. The Fund and the Subsidiary will be considered commodity pools, thereby subjecting the Fund to regulation under the Commodity Exchange Act and CFTC rules. Registration as a CPO imposes additional compliance obligations on the Advisor and the Fund related to additional laws, regulations, and enforcement policies, which may increase compliance costs and may affect the operations and financial performance of the Fund.
International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic, or political instability in other nations. NTRL is non-diversified.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Carefully consider the Fund's investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Fund's summary or full prospectuses, which may be found at globalxetfs.com. Please read the prospectus carefully before investing.
Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC or Mirae Asset Global Investments.
i Global X ETFs, as of May 24th, 2023
ii Mirae Asset, as of February 25th, 2023
iii Mirae Asset, as of February 25th, 2023