190: Carbon Index Investing with Kraneshares' Luke Oliver

Sam interviews Kraneshares' Luke Oliver on their Global Carbon ETF and the current state of the carbon allowance market. Sam and Derek then discuss the investment potential and market for this fund... and both make a big move - listen to find out what happened! Luke Oliver is a Managing Director and Head of Strategy at KraneShares. He has extensive experience as a leader within the ETF and investment industry, having built businesses, diverse teams, and bringing innovative product solutions to market. Prior to his asset management experience, Luke was part of the award-winning Foreign Exchange division of Deutsche Bank in both London and New York. Luke holds FINRA series 3, 7, 24, and 63 licenses. About the Kraneshares Global Carbon ETF:  The KraneShares Global Carbon ETF (the “Fund”) seeks to provide a total return that, before fees and expenses, exceeds that of the IHS Markit Global Carbon Index (the ‘‘Index’’) over a complete market cycle. KRBN is benchmarked to IHS Markit’s Global Carbon Index, which offers broad coverage of cap-and-trade carbon allowances by tracking the most traded carbon credit futures contracts. The index introduces a new measure for hedging risk and going long the price of carbon while supporting responsible investing. Currently, the index covers the major European and North American cap-and-trade programs: European Union Allowances (EUA), California Carbon Allowances (CCA) and the Regional Greenhouse Gas Initiative (RGGI). Listen to ILAB 190 on iTunes here or subscribe on your favorite podcast app. Where we are: Johnny FD – Ukraine / IG @johnnyfdj Sam Marks – Barcelona/ IG @imsammarks Derek Spartz - Venice Beach / IG @DerekRadio Sponsor: Fundrise Fundrise makes investing in private real estate as easy as investing in stocks, bonds or mutual funds. Get started in just a few minutes at Fundrise.com/LikeaBoss Support Invest Like a Boss: Join our Patreon Discussed: KraneShares Global Carbon ETF | KRBN The Impact and ESG Case for Global Carbon Allowance Exposure in Portfolios Carbon Pricing: Investing in a changing climate   Like these investments? Try them with these special ILAB links: ArtofFX – Start with just a $10,000 account (reduced from $25,000) Fundrise – Start with only $1,000 into their REIT funds (non-accredited investors OK) Betterment – Get up to 1 year managed free Wealthfront – Get your first $15,000 managed free PeerSktreet – Get a 1% yield bump on your first loan *Johnny and Sam use all of the above services personally. Time Stamps: 07:53 – How does Carbon Credits work? 11:17 – What is “Cap and Trade”? 14:38 – Which companies have to apply with this standard? 16:15 – What is the difference between carbon offsets and carbon allowances? 21:17 – Since there is an increase in cost for carbon emissions over time, will innovations and carbon offsets make the increase in cost more manageable? 24:16 – Can you explain the opportunity to profit through investment via the Paris Agreement? 27:28 – Are the Kraneshares Global Carbon ETF, stocks or some other form of assets? 28:29  – Patreon Question: what are the risks involved in the funds and why have the price of carbon credits only recently risen after being around for so long? 36:49 – What kind of investors are suited for the Global Carbon ETF? 40:04 – Can you tell us more about Kraneshares other products and services? 44:09 – Sam and Derek review If you enjoyed this episode, do us a favor and share it! Also if you haven’t already, please take a minute to leave us a 5-star review on iTunes and claim your bonus here!  Copyright 2021. All rights reserved. Read our disclaimer here