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Upturn AI SWOT - About
KraneShares European Carbon Allowance Strategy ETF (KEUA)
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Upturn Advisory Summary
08/14/2025: KEUA (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Analysis of Past Performance
Type ETF | Historic Profit -29.8% | Avg. Invested days 31 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | ETF Returns Performance  1.0 |
| Profits based on simulation | Last Close 08/14/2025 |
Key Highlights
Volume (30-day avg) - | Beta 0.63 | 52 Weeks Range 19.02 - 24.98 | Updated Date 06/29/2025 |
52 Weeks Range 19.02 - 24.98 | Updated Date 06/29/2025 |
Upturn AI SWOT
KraneShares European Carbon Allowance Strategy ETF
ETF Overview
Overview
The KraneShares European Carbon Allowance Strategy ETF (KEUA) offers exposure to the European Union Allowances (EUA) carbon credit market, aiming to profit from rising carbon prices driven by the EU's emissions reduction goals. It does not directly hold EUAs but invests in EUA futures contracts.
Reputation and Reliability
Krane Funds Advisors, LLC, is a well-known ETF provider specializing in China-focused and thematic investments. They are generally considered reputable and reliable.
Management Expertise
KraneShares has experience in managing specialized ETFs, including those focused on environmental and commodity-related strategies.
Investment Objective
Goal
To provide investors with exposure to the performance of the European Union Allowance (EUA) carbon allowance market.
Investment Approach and Strategy
Strategy: The ETF seeks to track the performance of the IHS Markit Carbon EUA Index Total Return. It achieves this by investing in EUA futures contracts.
Composition The ETF's assets consist primarily of EUA futures contracts. Cash and other money market instruments may be held as collateral for the futures positions.
Market Position
Market Share: KEUA occupies a significant portion of the market share for ETFs focused on European carbon allowances, although the market is relatively niche.
Total Net Assets (AUM): 91.23
Competitors
Key Competitors
- WisdomTree Carbon (CARB)
Competitive Landscape
The market for carbon allowance ETFs is relatively concentrated. KEUA has first mover advantage and a larger AUM. CARB offers a global basket that includes European, Californian and broader carbon credit exposure.
Financial Performance
Historical Performance: Historical performance data for KEUA is available since its inception in 2021. Performance is directly tied to the price fluctuations of EUA futures contracts.
Benchmark Comparison: The ETF's performance should be compared to the IHS Markit Carbon EUA Index Total Return to assess tracking accuracy.
Expense Ratio: 0.79
Liquidity
Average Trading Volume
KEUA's average trading volume is moderate, allowing for relatively easy entry and exit for most investors.
Bid-Ask Spread
The bid-ask spread is generally tight, reflecting its trading activity and market depth.
Market Dynamics
Market Environment Factors
EUA prices are influenced by EU climate policies, economic activity, energy prices, and regulatory changes related to the EU Emissions Trading System (ETS).
Growth Trajectory
The growth trajectory is closely linked to the increasing demand for EUAs as companies strive to meet emissions reduction targets. The limited supply of EUAs also contributes to price appreciation potential.
Moat and Competitive Advantages
Competitive Edge
KEUA offers investors direct exposure to the European carbon allowance market. The ETF's strategy of using EUA futures contracts can provide leveraged returns compared to directly holding allowances. KraneShares' experience in managing specialized ETFs is also a competitive advantage. The ETF's focus on EUAs provides a targeted exposure to the region with the most developed carbon market. The main drawback is that it does not hold actual EUA's.
Risk Analysis
Volatility
KEUA exhibits high volatility due to the speculative nature of the carbon allowance market and the leverage inherent in futures contracts.
Market Risk
The ETF is subject to regulatory risk, as changes in EU climate policies can significantly impact EUA prices. Economic downturns can also reduce demand for EUAs, leading to price declines. Additionally, future contracts contain roll risk.
Investor Profile
Ideal Investor Profile
KEUA is suitable for investors seeking exposure to the European carbon allowance market as a tool for hedging against carbon-intensive investments or as a speculative investment on the expectation of rising carbon prices.
Market Risk
KEUA is best suited for investors with a high-risk tolerance and a good understanding of carbon markets and futures contracts. It's more suited to active traders and those with a shorter term horizon.
Summary
The KraneShares European Carbon Allowance Strategy ETF (KEUA) provides investors with exposure to the European Union Allowance (EUA) carbon credit market through futures contracts. Its performance is highly dependent on the fluctuations of EUA prices, influenced by EU climate policies and economic conditions. This ETF suits risk-tolerant investors who understand carbon markets and are looking to speculate on or hedge against carbon prices. While it offers a targeted approach to EUAs, its high volatility and reliance on futures contracts should be carefully considered.
Peer Comparison
Sources and Disclaimers
Data Sources:
- KraneShares Official Website
- ETF.com
- Bloomberg
Disclaimers:
The information provided is for informational purposes only and should not be considered as financial advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Market share data is estimated based on available information and may not be exact.
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.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.