XCO2 - VanEck Global Carbon Credits ETF (Synthetic)

[Sean K]

Well, this started well, but I sold out of this last week for a $100 loss, or so. While I like the narrative, I just don't understand the instrument enough. Back to the school hall for me, for now.

 

[frugal.rock]

New low today. $19.08. ?

 

[qldfrog]

New low today. $19.08. ?

View attachment 151412

In that supposedly new green age, how could carbon price be so low when the use of fossil fuel is going higher and higher especially in the EU ..i would expect all these coal burning power stations buying a lot of carbon credit

 

[Sean K]

In that supposedly new green age, how could carbon price be so low when the use of fossil fuel is going higher and higher especially in the EU ..i would expect all these coal burning power stations buying a lot of carbon credit

That is my theory on this. I just can't see how we get anywhere near net zero without a lot of carbon offsetting. The instrument this mimics has done extremely well longer term, this might be a lull.

 

[frugal.rock]

Chart update. Cycling along.
Every chance it will push out of range to the upside, on this occasion.

UK carbon emissions monthly for some further reference.

 

[Sean K]

Chart update. Cycling along.
Every chance it will push out of range to the upside, on this occasion.

View attachment 153182

UK carbon emissions monthly for some further reference.

View attachment 153183

Looks good for a break up doesn't it.

 

[Sean K]

Looks good for a break up doesn't it.

Well, it broke up @frugal.rock , but has come back down to a bit of support.

It's had 4 months to give us some idea about how it's going to go and react to the general market. Still not sure, and I still have got no idea how the underlying instrument it tracks really works. But, so far, it's going up...

 

[qldfrog]

Well, it broke up @frugal.rock , but has come back down to a bit of support.

It's had 4 months to give us some idea about how it's going to go and react to the general market. Still not sure, and I still have got no idea how the underlying instrument it tracks really works. But, so far, it's going up...

View attachment 154526

Just a thought: could this be actually a pure narrative stock:
Talk ev,green world and it goes up then media focus eases and it goes down

 

[Sean K]

Just a thought: could this be actually a pure narrative stock:
Talk ev,green world and it goes up then media focus eases and it goes down

It's tracking something that's real. ICE Carbon Futures. At least I think it's real.... Bernie could be running from his jail cell for all I know.

 

[Sean K]

This is part of the reason that I was drawn to this ETF. Big organisations who emit CO2 are going to be forced to buy carbon credits to meet net zero. I still don't know how it exactly influences the underlying instrument though...

 

[Sean K]

Coming up to two years and this has not gone as anticipated. The historical performance of the benchmark was extremely good but they've had a tough couple of years. Maybe the carbon credit industry is a furphy.

 

[divs4ever]

Coming up to two years and this has not gone as anticipated. The historical performance of the benchmark was extremely good but they've had a tough couple of years. Maybe the carbon credit industry is a furphy.


View attachment 170219

well you have a synthetic derivative ( no tangible assets in the portfolio basket ) betting on a synthetic problem ( nature is very capable of a adjusting , adapting and correcting most major problems except maybe all-out thermo-nuclear war and asteroid strikes )

holders ( rather than traders ) of BBUS face the same challenges

Top 10 Holdings​

As of 05 Feb 2024, 12:10 pm AEDT
Total Holdings
8
Category Average
46.19

Distinct Portfolio
Yes
Portfolio Turnover
--
Top 10 Holdings

CODE	COMPANY	ASSET
--	Ecx Emission Dec24	48.90%
--	Uk Emiss Allow Fu Dec24	24.61%
--	Rggi Vintage 2023 Dec24	5.12%

eight holdings according to the listing

only 3 listed and about 20% of the 'portfolio' 'dark '

NAV $20.010

Net Assets $5.588M

Management Cost 0.45%

pays annually ... but hasn't yet aid a div.

looks like a trader's toy to me

 

[qldfrog]

Coming up to two years and this has not gone as anticipated. The historical performance of the benchmark was extremely good but they've had a tough couple of years. Maybe the carbon credit industry is a furphy.


View attachment 170219

Not helped by a Csiro study on Carbon capture.. now completed but not allowed to be released.
Billions went into CCP ..carbon capture plant.. but as every scientist could tell you, extracting CO2, compressing it to put it back in an u/g cave or reservoir is an heresy energy wise...so does not make sense.
So the only carbon capture..for 2 decades only and before the next fire or fallen tree, is a forest.
These etfs mean nothing and soon going to be valued as such