Carbon Credits Strategy ETF

Reasons to Consider NTRL

Combating Climate Change

NTRL invests in carbon futures across different geographies, with the aim of capping emissions in line with the 2015 Paris Agreement (an international treaty on climate change).

High Growth Potential

Expectations for tighter emissions caps have pushed demand for carbon allowances globally. Between 2018 and 2022, the total value of compliance carbon markets more than quadrupled, from $186bn to $856bn.1

Portfolio Diversification

Historically carbon allowance futures have a low correlation to traditional portfolio asset classes.2

1Refinitiv, Feb 2023
2Global X ETFs, May 2023. "Introducing the Carbon Credits Strategy ETF (NTRL)"

Key Information As of 05/26/23

Inception Date 05/24/23
Total Expense Ratio 0.39%
Net Assets $1.36 million
NAV $34.07
Fact Sheet

ETF Summary

The Global X Carbon Credits Strategy ETF (NTRL) seeks to provide exposure to multiple emissions trading schemes globally by investing in the most actively traded carbon credit futures. Specifically, NTRL takes long positions in futures that require “physical delivery” of emission allowances issued under “cap and trade” regimes, including those administered in the European Union, United Kingdom, and the state of California, as well as by an alliance of states in the northeastern U.S.

ETF Objective

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.

Trading Details As of 05/26/23

Ticker NTRL
Bloomberg Index Ticker ICECRBNT
CUSIP 37960A586
ISIN US37960A5864
Primary Exchange NYSE Arca
Shares Outstanding 40,000
Number of Holdings 7
30-Day Median Bid-Ask Spread N/A

Distributions As of 05/26/23

30-Day SEC Yield N/A
Distribution Frequency Semi-Annually

ETF Prices As of 05/26/23

NAV $34.07 Daily Change -$0.13 -0.38%
Market Price $34.41 Daily Change $0.15 0.44%

Performance History

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Performance is shown on a total return basis (i.e., with gross income reinvested, where applicable). Cumulative return is the aggregate amount that an investment has gained or lost over time. Annualized return is the average return gained or lost by an investment each year over a given time period.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. High short-term performance, when observed, is unusual and investors should not expect such performance to be repeated.

Top Holdings As of 05/26/23

Exposure (%) Ticker Name SEDOL Price/Unit ($) Units Held Exposure Amount ($) Market Value ($) Market Value (%)
51.72 MOZ23 Comdty ECX EMISSION DEC23 88,106.20 8.00 704,849.59
21.01 LUDZ23 Comdty CALCARBALLOWV2023 DEC23 31,810.00 9.00 286,290.00
19.22 UKEZ3 Comdty UK EMISS ALLOW FU DEC23 65,472.89 4.00 261,891.55
5.06 LUIZ23 Comdty RGGI VINTAGE 2023 DEC23 13,800.00 5.00 69,000.00
B 06/20/23 BNHV2X3 1.00 400,000.00 398,745.83 29.26
B 07/18/23 BMWBS00 0.99 400,000.00 397,257.36 29.15
B 08/24/23 BMTY6D1 0.99 400,000.00 395,068.54 28.99
CASH 1.00 172,167.23 171,740.48 12.60
Holdings are subject to change. "Cash" denotes U.S. dollars.

ETF Research

Investing involves risk, including the possible loss of principal. Diversification does not ensure a profit or guarantee against a loss. The Fund invests in carbon credit futures. The price and performance of futures may differ from the current price of carbon credits. These differences could be significant. Futures are subject to margin requirements, collateral requirements and other limits that may prevent the ETF from achieving its objective. Margin requirements for futures and costs associated with rolling (buying and selling) futures may have a negative impact on the fund’s performance and its ability to achieve its investment objective.

A cap and trade regime is a market-based mechanism that governments or regulatory bodies use to reduce carbon dioxide and other greenhouse gases from entering the atmosphere. A cap and trade program is designed to set a geographic limit on the amount of carbon dioxide that can be emitted into the atmosphere by specific sectors of the economy. This limit declines on an annual basis, with the intention of reducing the overall amount of carbon dioxide emitted over time. Companies and other entities that are obliged to comply within a specific cap and trade program must either reduce their emissions below their allowable annual limit, or use additional carbon credits which at least equal their emissions above their annual limit to comply with the program.

The Fund relies on the existence of cap and trade regimes. There is no assurance that cap and trade programs will continue to exist. Cap and trade may not prove to be an effective method of reducing greenhouse gas emissions. As a result, or due to other factors, cap and trade programs may be terminated or may not be renewed upon their expiration. Carbon allowance derivatives may be subject to changes in regulatory decisions, macroeconomic factors, and changes in business cycles.

The Fund expects to gain Carbon Futures exposure by investing in a subsidiary of the Fund organized under the laws of the Cayman Islands. The Subsidiary is not registered under the 1940 Act, and, unless otherwise noted in the prospectus, is not subject to all the investor protections of the 1940 Act. The Fund and the Subsidiary will be considered commodity pools, thereby subjecting the Fund to regulation under the Commodity Exchange Act and CFTC rules. Registration as a CPO imposes additional compliance obligations on the Advisor and the Fund related to additional laws, regulations, and enforcement policies, which may increase compliance costs and may affect the operations and financial performance of the Fund.

International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. NTRL is non-diversified.

Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The market price returns are based on the official closing price of an ETF share or, if the official closing price isn’t available, the midpoint between the national best bid and national best offer (“NBBO”) as of the time the ETF calculates current NAV per share, and do not represent the returns you would receive if you traded shares at other times. NAVs are calculated using prices as of 4:00 PM Eastern Time. Indices are unmanaged and do not include the effect of fees, expenses or sales charges. One cannot invest directly in an index.

Carefully consider the Fund’s investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Fund’s summary or full prospectuses. Please read the prospectus carefully before investing.

Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC or Mirae Asset Global Investments. Global X Funds are not sponsored, endorsed, issued, sold or promoted by ICE Data Indices, LLC, nor does ICE Data Indices, LLC make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO, Global X nor Mirae Asset Global Investments are affiliated with ICE Data Indices, LLC.

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