CO2

SparkChange Physical Carbon EUA ETC

Witholding carbon allowances from polluters, achieving environmental impact and potential returns.

Case for our Physical Carbon EUA ETC

EUAs are increasing in scarcity value

An EUA is a permit to pollute 1 tonne of CO2. The EU Commission issues fewer annually to decrease emissions creating potential for upward price pressure and driving scarcity value.

100% physically-backed by EUAs

Each CO2 is physically-backed by one EUA, adjusted for accumulated management fees since launch. EUAs held within the ETC cannot be used by polluters, ensuring direct environmental impact.

Prevents carbon emissions

While The physical carbon EUA ETC holds EUAs, companies can’t use them to pollute. Withholding allowances triggers an EU law that results in additional allowances being cancelled in future years, reducing supply.

As of 22.04.2024

Product Objective

SparkChange Physical Carbon EUA ETC (CO2) is designed to offer investors a means of accessing physical European Union carbon Allowances (EUAs). Each EUA acts as a permit to pollute 1 tonne of carbon dioxide, so investing in CO2 can prevent emissions by withholding these carbon allowances from polluters. As polluters and investors compete for a reduced supply of EUAs, prices may rise until it becomes too expensive for polluters to continue using dirty fossil fuels. The physical carbon EUA ETC avoids the performance drag associated with EUA futures-based products. The EUA ETC is 100% physically backed by, and tracks the price of, EUAs (excluding fees).

Key Information

Inception Date18/10/2021
Base currencyEUR
Value of EUA Holding€145,637,600
TER89 bps
Replication MethodPhysical
DomicileIreland
ISINXS2353177293

Key Risks

The value of the ETC will be affected by movements in the price of the underlying EUAs, the value may go up as well as down. The abandonment, termination or non-renewal upon expiration of a trading scheme may cause the price of EUAs to fall (potentially to zero). Investors’ capital is at risk and investors may not get back the amount originally invested and should obtain independent advice before making a decision. Any decision to invest should be based on the information contained in the relevant prospectus.

Product Information

TickerCO2
Asset ClassCommodities

Net Asset Values

As of 22.04.2024
NAV€63.13
Value of EUA Holding€145,637,600
Shares Outstanding2,306,841
Issuer AUM$961,786,625
Entitlement Per Security0.9781977393

Product Structure

UCITS CompliantNo
UCITS EligibleYes
ISA EligibleYes
SIPP EligibleYes
UK Fund Reporting StatusYes

Key Service Providers

TrusteeThe Law Debenture Trust Corporation plc
IssuerHANetf ETC Securities plc

Registrations

Austria
Belgium
Denmark
Finland
France
Germany
Ireland
Italy
Luxembourg
Mexico
Netherlands
Norway
Poland
Spain
Sweden
United Kingdom

Listings & Codes

ExchangeTickerRICSEDOLCCYListing Date
LSECO2U LNCO2U.LBNLYQH0$2021-11-04
LSECO2 LNCO2.LBNLYQ702021-11-04
LSECO2P LNCO2P.LBNLYQC5£2021-11-04
XetraFCO2 GYFCO2.DEBNLYQL42022-06-07
Borsa ItalianaCO2 IMCO2.MIBNLYQK32022-06-07
Exchange LSE
Ticker CO2U LN
RIC CO2U.L
SEDOL BNLYQH0
CCY $
Listing Date 2021-11-04
Exchange LSE
Ticker CO2 LN
RIC CO2.L
SEDOL BNLYQ70
CCY
Listing Date 2021-11-04
Exchange LSE
Ticker CO2P LN
RIC CO2P.L
SEDOL BNLYQC5
CCY £
Listing Date 2021-11-04
Exchange Xetra
Ticker FCO2 GY
RIC FCO2.DE
SEDOL BNLYQL4
CCY
Listing Date 2022-06-07
Exchange Borsa Italiana
Ticker CO2 IM
RIC CO2.MI
SEDOL BNLYQK3
CCY
Listing Date 2022-06-07

Returns

CO2 (Fund)EEXX04EA (Index)
1M10.67%10.75%
3M-22.53%-22.36%
6M-26.13%-25.80%
YTD-22.53%-22.36%
12M-33.38%-32.79%
3Y-41.30%
Since Inception (18/10/2021)0.29%2.46%

Performance chart

NAV

Source: HANetf, data as of 31.03.2024. Please note that all performance figures are showing net data. The underlying benchmark is “Carbon EUA”, performance is in EUR. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product. Investors should read the prospectus of the Issuer (“Prospectus”) before investing and should refer to the section of the Prospectus entitled “Risk Factors” for further details of risks associated with an investment in this product. If product is less than 12 months old, YTD field will be calculated since inception. When you invest in ETCs your capital is at risk.

Holdings As of 22.04.2024

Index Details

Knowledge hub

Explore our expert-written monthly fund reports, periodic reviews, and key insights.

Video

Explore the latest video, where SparkChange’s Elliot Waxman and head of research Jan Ahrens joined Proactive’s Stephen Gunnion to share news of the strong uptake of the world’s first ETP backed by physical EU Carbon Allowances, which has sparked ESG investment activism by removing carbon allowances from polluters.

Awards

Best ESG Investment Fund (2024)

ESG Investing Awards

At the ESG Investing Awards 2024, SparkChange Physical Carbon EUA ETC (CO2) won the award for Best ESG Investment Fund. CO2 is designed to offer investors a means of accessing the properties of physical European Union carbon Allowances (EUAs).

About Partner

SparkChange is a provider of specialist carbon investment products and data, enabling investors to achieve both positive environmental impact and potential financial returns. The company was established by experts in environmental products and capital markets technologies to set a new standard in carbon investing. Our mission is to revolutionise access to carbon.

More investors with access means a bigger impact on the environment. That doesn’t just change a world of investing. It can change the future of our planet.