Listed on the Toronto Stock Exchange, Horizon’s Carbon Credits ETF (CARB.TSX) is the first carbon-credit-related investment product to list on the Canadian markets.
A passive fund based on the Horizons Carbon Credits Rolling Futures Index, CARB is comprised solely of European Carbon Allowance (EUA) futures, with contracts rolled forward as they expire.
Of the two major types of carbon allowance futures, EUAs had the superior performance last year, as the chart below shows:
Many of the other leading carbon credit investment products on the U.S. exchanges, such as the KraneShares Global Carbon Strategy ETF (KRBN), have holdings that are heavily weighted towards EUA futures over the other regional carbon credits, or are comprised of EUA futures entirely, like the iPath Series B Carbon ETN (GRN).
As such, CARB is a good choice for Canadian investors looking for an ETF similar to GRN, with an emphasis on European carbon allowances.
- Click here to learn about the other top canadian ETF: CBON.