Global X ETFs Launches the Global X Carbon Credits Strategy ETF (NTRL)
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%.
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