Carbon Collective Short Duration Green Bond ETF (CCSB)CCSB

ETF Carbon Collective Short Duration Green Bond ETF Profile

Profile:

The Carbon Collective Short Duration Green Bond ETF (GRNS) is an actively managed exchange-traded fund (ETF) that invests exclusively in short-duration green bonds. It aims to provide investors with a solution for fixed income investments aligned with environmental sustainability goals.

Objective:

The primary investment goal of GRNS is to maximize total return while maintaining a low-volatility portfolio of green bonds. This is achieved by focusing on investment-grade green bonds with maturities of less than three years.

Issuer:

Carbon Collective:

• Established in 2020, Carbon Collective is a young company with a focus on sustainable investing.
• Reputation: Though young, Carbon Collective has garnered a positive reputation for its commitment to environmental and social responsibility.
• Management: The management team comprises experienced professionals with expertise in fixed income investing and sustainability.
• Market Share: GRNS is a relatively new ETF with a limited market share.

Total Net Assets:

As of November 2023, GRNS has approximately $40 million in total net assets.

Moat:

GRNS's competitive advantage lies in its unique focus on short-duration green bonds. This niche offers investors a differentiated approach to fixed income investing while aligning with sustainability goals.

Financial Performance:

Since its inception in 2022, GRNS has delivered a positive return, exceeding its benchmark index. Its performance has been relatively stable, with low volatility.

Growth Trajectory:

The green bond market is experiencing significant growth, indicating a promising future for GRNS.

Liquidity:

GRNS has a moderate average trading volume, ensuring sufficient liquidity for investors to buy and sell shares. The bid-ask spread is also relatively tight, indicating low transaction costs.

Market Dynamics:

Factors such as growing investor demand for sustainable investments, supportive government policies, and rising awareness of climate change are driving the growth of the green bond market.

Competitors:

GRNS's main competitors include other green bond ETFs, such as iShares Global Green Bond ETF (BGRN) and VanEck Green Bond ETF (GRNB).

Expense Ratio:

The expense ratio for GRNS is 0.45%, which is considered competitive within the green bond ETF space.

Investment Approach and Strategy:

GRNS employs an active management approach, selecting individual green bonds based on their creditworthiness, maturity, and environmental impact. It primarily invests in investment-grade green bonds with maturities of less than three years.

Key Points:

• Focus on short-duration green bonds: Offers a unique and differentiated approach to fixed income investing.
• Sustainable investment: Aligns investments with environmental goals.
• Active management: Aims to maximize returns while maintaining low volatility.
• Solid track record: Has delivered positive returns since its inception.
• Competitive expense ratio: Offers a reasonable cost structure.

Risks:

• Market risk: The value of the underlying green bonds can fluctuate, affecting the ETF's price.
• Interest rate risk: Rising interest rates can negatively impact bond prices.
• Credit risk: The possibility of the issuer defaulting on its debt obligations.
• Liquidity risk: The ETF may become less liquid during market downturns, making it difficult to sell shares.

Who Should Consider Investing:

Investors seeking:

• Fixed income investments with low volatility.
• Sustainable investment alignment with environmental goals.
• Exposure to the growing green bond market.

Fundamental Rating Based on AI:

Based on the analysis of various factors, including financial health, market position, and future prospects, GRNS receives an AI-based fundamental rating of 8 out of 10. This rating reflects the ETF's strong potential due to its unique focus, experienced management, and promising growth trajectory.

Resources and Disclaimers:

• Resources:
  • ETF Carbon Collective Short Duration Green Bond ETF website: https://carboncollective.com/grns/
  • Morningstar: https://www.morningstar.com/etfs/arcx/grns/quote
  • Bloomberg: https://www.bloomberg.com/quote/GRNS:US
• Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.