(KCCA) KraneShares California - Ratings and Ratios

The KraneShares California Carbon Allowance ETF (NYSE ARCA: KCCA) is designed to track the performance of futures contracts on carbon credits issued under Californias cap-and-trade system. The index focuses exclusively on carbon credit futures contracts that mature in December of the next one to two years, ensuring a targeted exposure to the California Carbon Allowance market. The fund typically aligns its portfolio with the index by investing in the same carbon credit futures contracts, providing investors with a direct play on the states carbon pricing mechanism. The ETF is non-diversified, meaning it can concentrate its holdings in a smaller number of securities, which may heighten risk but also allows for more focused exposure to the California carbon market.

KCCA invests at least 80% of its net assets in instruments tied to California Carbon Allowances, emphasizing futures contracts as its primary exposure. This approach allows the fund to capitalize on price movements in the California carbon market, which is influenced by regulatory requirements, emission levels, and broader environmental policies. As a commodities-focused ETF, KCCA provides a unique way for investors to gain exposure to the growing carbon credit market, which is increasingly relevant as governments and corporations worldwide commit to reducing greenhouse gas emissions.