ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Climate Insights Channel
  2. KraneShares Launches Trailblazing Carbon Offset Fund
Climate Insights Channel
Share

KraneShares Launches Trailblazing Carbon Offset Fund

Karrie GordonApr 27, 2022
2022-04-27

KraneShares has announced in a press release the launch of its newest fund, the KraneShares Global Carbon Offset Strategy ETF (KSET) will be the first U.S.-listed ETF offering investors exposure to the voluntary carbon markets.

“KSET is a timely expansion of the KraneShares Climate Investment suite, which includes the $1.4bn KraneShares Global Carbon Strategy ETF (KRBN ), to now cover both compliance and voluntary carbon markets," said Luke Oliver, KraneShares head of strategy, in the press release. “KSET’s addition to the suite gives investors holistic access to global decarbonization efforts and continues KraneShares’ leadership in the space.”

KSET is structured to offer global coverage of voluntary carbon markets by tracking carbon offset futures contracts comprised of nature-based global emissions offsets (N-GEOs) as well as global emissions offsets (GEOs) that trade via CME Group.

N-GEOs adhere to the Verified Carbon Standard, which set the requirements for projects within Agriculture, Forestry, and Other Land Use (AFOLU). The N-GEOs also are certified by the Verra Registry’s Climate Community and Biodiversity Standard, which selects projects that work towards climate change goals, support local communities and smallholders, and work to protect and conserve biodiversity. The GEOs meet Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) from VCS, the American Carbon Registry, or the Climate Action Reserve.

“KSET is the first US-listed ETF to combine the leading carbon offset futures markets into a single investable fund2,” said Jonathan Krane, chief executive officer at KraneShares, in the press release. “We are pleased to offer KSET as a key addition to our growing climate suite.”

KSET is also dynamic in a way that is similar to KRBN such that as new markets scale up to size, they will be included within the fund.

The Role of Voluntary Carbon Markets Looking Ahead

CME Group estimates that to reach global emission targets, the voluntary markets will need to scale up approximately 15x their current size. Carbon offsets are generated from activities that reduce emissions, are third-party verified, and are seen as a bridge for companies to utilize as they work to reduce emissions internally and within their supply chains.

“Voluntary Carbon markets are a vital tool in the fight against climate change and are increasingly viewed as a cornerstone in global efforts to achieve mid-century net-zero targets,” said Eron Bloomgarden, co-founder of Climate Finance Partners (CLIFI), KSET’s non-discretionary sub-advisor. “Investors can feel confident that the offset credits behind KSET are generated from emission reduction activities that have been third-party verified by leading carbon offset registries.”

KSET carries an expense ratio of 0.79%.

For more news, information, and strategy, visit the Climate Insights Channel.


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X