Canadian Carbon Credit ETF’s set to Launch
The carbon markets are heating up, so much so that Canada is getting two carbon credits ETF’s.
Both are claiming to be the “first” Canadian Carbon credit ETF.
Horizons ETFs Management (Canada) and Ninepoint Partners LP are launching their own respective carbon credit ETF’s on the TSX and NEO exchanges.
Horizons Carbon Credits ETF will trade under the ticker “CARB” and the goal is to replicate the performance of its Horizons “Carbon Credits Rolling Futures Index”. That index seeks to provide exposure to investments in cap-and-trade carbon allowances.
CARB will begin trading on February 10, 2022 on the TSX exchange.
The Ninepoint Carbon Credit ETF has a US and Canadian denominated ticker. The Canadian ticker is “CBON” & the US Dollar ticker is “CBON.U”. Both are set to launch on the Canadian NEO exchange around February 16th, 2022.
The Ninepoint offerings have a similar investment strategy as CARB, by investing in carbon emissions allowance futures in jurisdictions with cap-and-trade regimes such as Europe and California.
Both have claimed to be Canada’s first Carbon ETF’s and to check if these are “carbon copy” funds you will need to review their prospectus’ as both have a similar management fee structure of 0.75%.
Here’s the link to the official press releases here – CBON & CBON.U & CARB.
Investors are demanding more options to get exposure to the carbon credit sector which grew to over $850 billion last year.
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