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Upturn AI SWOT - About
KraneShares European Carbon Allowance Strategy ETF (KEUA)
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Upturn Advisory Summary
04/01/2025: KEUA (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type ETF | Historic Profit -44.36% | Avg. Invested days 24 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | ETF Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Volume (30-day avg) 4344 | Beta 0.51 | 52 Weeks Range 18.40 - 24.98 | Updated Date 04/2/2025 |
52 Weeks Range 18.40 - 24.98 | Updated Date 04/2/2025 |
Upturn AI SWOT
KraneShares European Carbon Allowance Strategy ETF
ETF Overview
Overview
The KraneShares European Carbon Allowance Strategy ETF (KEUA) provides exposure to the European Union Allowances (EUA) carbon credit market, which is a key component of the EU's efforts to reduce greenhouse gas emissions. It primarily invests in EUA futures contracts. The fund aims to track the performance of the IHS Markit Carbon EUA Index.
Reputation and Reliability
Krane Funds Advisors, LLC, the issuer, is known for its expertise in offering China-focused and thematic ETFs, including those related to climate and environmental solutions. They have a solid track record in providing innovative investment products.
Management Expertise
Krane Funds Advisors has a team with experience in managing commodity-linked and thematic ETFs, offering investors access to specialized markets.
Investment Objective
Goal
The investment objective of KEUA is to provide investors with exposure to the performance of European Union Allowance (EUA) carbon credits.
Investment Approach and Strategy
Strategy: KEUA seeks to track the IHS Markit Carbon EUA Index. The fund invests primarily in EUA futures contracts.
Composition The ETF's assets are primarily composed of European Union Allowance (EUA) futures contracts.
Market Position
Market Share: KEUA holds a significant market share within the carbon allowance ETF market.
Total Net Assets (AUM): 92190000
Competitors
Key Competitors
- WisdomTree Carbon (CARB)
- iPath Series B Carbon ETN (GRN)
Competitive Landscape
The carbon allowance ETF market is relatively concentrated. KEUA benefits from being a first mover in the space, giving it a competitive edge. However, competitors like CARB and GRN provide alternative approaches with potentially different risk/return profiles.
Financial Performance
Historical Performance: Historical performance data for KEUA should be analyzed over various periods (1yr, 3yr, 5yr, etc.) to assess its track record; however, specific data is omitted here.
Benchmark Comparison: KEUA's performance should be compared to the IHS Markit Carbon EUA Index to evaluate its tracking effectiveness; however, specific data is omitted here.
Expense Ratio: 0.79
Liquidity
Average Trading Volume
The average trading volume is moderately high, indicating sufficient liquidity for most investors.
Bid-Ask Spread
The bid-ask spread is relatively tight, indicating reasonable trading costs.
Market Dynamics
Market Environment Factors
Economic indicators related to European industrial output, regulatory policies surrounding carbon emissions, and the overall demand for carbon credits influence KEUA.
Growth Trajectory
Growth trends are tied to the tightening of EU emissions targets and the increasing price of carbon credits. Future growth will depend on the ongoing implementation and enforcement of carbon reduction policies.
Moat and Competitive Advantages
Competitive Edge
KEUA benefits from being a pure-play carbon allowance ETF. It provides direct exposure to the EUA market. This targeted approach may appeal to investors seeking focused exposure to carbon pricing. While competitors exist, KEUA's first-mover advantage and clear focus have helped it establish a significant market position.
Risk Analysis
Volatility
KEUA's historical volatility is relatively high due to its exposure to commodity futures and regulatory changes.
Market Risk
The specific risks include regulatory risk (changes in EU carbon policies), economic risk (impact of carbon pricing on European industries), and counterparty risk (associated with futures contracts).
Investor Profile
Ideal Investor Profile
The ideal investor is one seeking exposure to the carbon allowance market as a means of hedging against climate risk or capitalizing on the transition to a low-carbon economy. Investors should have a higher risk tolerance.
Market Risk
KEUA is likely more suitable for active traders or investors with a longer-term view on carbon pricing, rather than passive index followers seeking broad market exposure.
Summary
The KraneShares European Carbon Allowance Strategy ETF (KEUA) provides direct exposure to the European Union Allowances (EUA) carbon credit market. It offers a targeted approach for investors seeking to profit from or hedge against carbon emissions policies. The fund's performance is heavily influenced by regulatory changes and economic conditions in Europe. While offering potentially high returns, it also carries significant risks related to commodity futures and regulatory uncertainty.
Similar Companies
GRN
iPath® Series B Carbon ETN
GRN
iPath® Series B Carbon ETN
KCCA
KraneShares California Carbon Allowance ETF
KCCA
KraneShares California Carbon Allowance ETF
Sources and Disclaimers
Data Sources:
- KraneShares official website
- ETF.com
- Morningstar
- IHS Markit
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered financial advice. Investment decisions should be made based on individual circumstances and after consulting with a qualified financial advisor. Past performance is not indicative of future results. Market share data are estimates and may not be precise.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About KraneShares European Carbon Allowance Strategy ETF
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website | ||
The index is designed to measure the performance of a portfolio of futures contracts on carbon credits issued under the European Union Emissions Trading System "cap and trade" regime. The index includes only carbon credit futures that mature in December of the next one to two years. The fund will generally seek to obtain exposure to the same carbon credit futures that are in the index. The fund will invest at least 80% of its net assets in instruments that provide exposure to European carbon allowances. It is non-diversified.
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