KARB — Carbon Strategy ETF

KARB Fund Overview

KARB — Carbon Strategy ETF is a US ETF managed by ETF Series Solutions, categorised as Alternative. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US ETF
• Manager: ETF Series Solutions
• Category: Alternative
• Assets under management: $815.30K
• 1-year return: -18.2%
• Ticker: KARB
• SEC CIK: 0001540305
• SEC series ID: S000075557
• Share class ID: C000234755

KARB Investment Objective and Strategy

Carbon Strategy ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by ETF Series Solutions.

Investment objective

The Carbon Strategy ETF (the Fund) seeks capital appreciation.

Principal investment strategy

The Fund is an actively managed exchange-traded fund (ETF) that seeks capital appreciation by gaining exposure to the global carbon credit market. The Fund invests in carbon credit futures contracts, which are commodity futures contracts linked to the value of emission allowances (Carbon Futures). The Fund also may invest in (i) ETFs that provide exposure to government or investment grade corporate fixed income securities with maturities up to 12 months; (ii) money market funds; and (iii) cash and cash equivalents, including foreign currency (Collateral Instruments). The Collateral Instruments are intended to provide liquidity and to serve as collateral for the Carbon Futures. The Fund is an actively managed ETF that seeks to achieve its investment objective through its investments in Carbon Futures.

The Fund invests in a portfolio of liquid Carbon Futures that require physical delivery of emission allowances issued under cap and trade regimes. A cap and trade regime is a regulatory program designed to limit, or cap, the total level of emissions of greenhouse gases, particularly carbon dioxide, by companies in regulated industries, such as manufacturers or energy producers. The regulator, such as a governmental entity or supranational organization, issues a limited number of annual emission allowances that allow companies to emit a certain amount of greenhouse gases. Companies are then taxed if they produce a higher level of emissions than allowed. If a company reduces its emissions levels, it can sell, or trade, unused emissions allowances to other companies on the open market. Over time, regulators lower the number of emissions allowances available each year, thereby lowering the total cap on emissions, making emissions allowances more expensive, thereby incentivizing regulated entities to reduce their emissions.

Futures contracts are contractual agreements to buy or sell a particular currency, commodity or financial instrument at a pre-determined price in the future. The Funds use of futures contracts will have the economic effect of financial leverage. Financial leverage magnifies, sometimes significantly, the effect of any increase or decrease in the Funds exposure to the price swings of an asset class underlying such futures contracts and may cause the Funds net asset value (NAV) to experience greater volatility. As a result, the Fund will have the potential for greater gains, as well as the potential for greater losses, than if the Fund does not use futures or other derivatives that have a leveraging effect. When the Fund uses derivative instruments, the Fund will comply with SEC guidelines regarding derivatives instruments, and may hold a significant portion of its assets in cash and/or cash equivalents, including foreign currency.

The Fund invests in Carbon Futures from the United States and Europe. The Fund typically invests in Carbon Futures linked to the value of emissions allowances issued under the following cap and trade regimes: European Union Emissions Trading Scheme (EUA), California Carbon Allowance (CCA), Regional Greenhouse Gas Initiative (RGGI), and United Kingdom Emissions Trading Scheme (UK ETS) (each, a Cap and Trade Regime). As the global carbon credit market grows, the Fund may invest in Carbon Futures linked to emissions allowances issued under other cap and trade regimes. The Fund intends to hold foreign currency or invest in futures contracts on foreign currency in an amount that approximates the notional value of the Funds exposure to non-U.S. denominated Carbon Futures, such as those issued by the EUA and UK ETS.

Exchange Traded Concepts, LLC, the Funds investment adviser (the Adviser), will generally seek to invest in Carbon Futures in weights similar to their trading volumes relative to the overall Carbon Futures market, although the Adviser may determine to increase or decrease such weights based on its expectations for how such trading volumes may change in the future. The Fund will invest indirectly, via the Subsidiary (defined below), in Carbon Futures, which are standardized, liquid futures contracts. As the futures contracts approach expiration, they may be replaced by similar contracts that have a later expiration. This process is referred to as rolling. The Fund typically expects to invest in Carbon Futures that mature in December of the current year and of the following year, although the Fund may invest in Carbon Futures with other expiration dates.

At times, Carbon Futures with a longer term to expiration may be priced higher than Carbon Futures with a shorter term to expiration, which is known as contango. The Adviser generally will attempt to minimize the negative impact from rolling Carbon Futures that are in contango, when possible, as doing so would result in the Fund selling the expiring contract at a lower price and buying a longer-term contract at a higher price, producing a negative roll yield. Conversely, Carbon Futures with a longer term to expiration may be priced lower than Carbon Futures with a shorter term to expiration, known as backwardation. Rolling Carbon Futures in backwardation generally involves selling an expiring contract at a higher price and buying a longer-term contract at a lower price, producing positive roll yield.

However, there can be no guarantee that such a strategy will produce the desired results. The Fund expects to gain exposure to Carbon Futures by investing in a wholly-owned and controlled subsidiary of the Fund organized under the laws of the Cayman Islands (the Subsidiary). The Adviser also serves as the investment adviser to the Subsidiary. The Funds investment in the Subsidiary is intended to provide the Fund with indirect exposure to Carbon Futures within the limits of current federal income tax laws applicable to investment companies such as the Fund, which limit the ability of investment companies to invest directly in Carbon Futures. The Subsidiary has the same investment objective as the Fund, but it may invest in Carbon Futures to a greater extent than the Fund. Except as otherwise noted, for purposes of this Prospectus, references to the Funds investments include the Funds indirect investments through the Subsidiary.

Because the Fund intends to qualify for treatment as a regulated investment company (RIC) under the Internal Revenue Code of 1986, as amended (the Code), the size of the Funds investment in the Subsidiary will generally be limited to 25% of the Funds total assets, tested at the end of each fiscal quarter. The CFTC has adopted certain requirements that subject registered investment companies and their advisers to regulation by the CFTC if a registered investment company invests more than a prescribed level of its net assets in CFTC-regulated futures or if a registered investment company markets itself as providing investment exposure to such instruments. Due to the Funds potential use of CFTC-regulated futures above CFTC Rule 4.5 limits, it will be considered a commodity pool under the Commodity Exchange Act upon commencement of operations.

The Fund is classified as a non-diversified investment company under the Investment Company Act of 1940, as amended (the 1940 Act) and, therefore, may invest a greater percentage of its assets in a particular issuer than a diversified fund. The Fund may not concentrate its investments ( i.e. , hold more than 25% of its total assets) in any industry or group of related industries. However, t he Fund expects to have significant exposure to Carbon Futures and/or emission allowances issued by cap and trade regimes (using the notional value of any futures in which it invests).

KARB Holdings

Top 1 holdings of Carbon Strategy ETF by percentage of net assets, from the fund's latest SEC N-PORT filing.

View all KARB holdings

KARB Portfolio Allocation

Asset-class allocation of Carbon Strategy ETF by percentage of net assets, from the latest SEC N-PORT filing.

KARB Performance

Total returns for KARB (as of 2026-10-01), from SEC filings.

KARB Risk Information

Risk metrics for KARB, derived from monthly returns in SEC filings.

• 1-year volatility (annualised): 23.0%

KARB Costs and Fees

KARB costs about $131 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.31%
• Gross expense ratio: 1.31%
• Portfolio turnover: 0%
• Brokerage commissions: 3.79 bps of average net assets (SEC N-CEN)

KARB Cashflows

Over the 12 months to 2024-03, Carbon Strategy ETF had net inflows of $259.19K, from monthly SEC N-PORT filings.

KARB Debt Constituents

No individual debt constituents are reported in Carbon Strategy ETF's latest SEC N-PORT filing.

KARB Prospectus and SEC Filings

Official Carbon Strategy ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2023-10-27
• Prospectus (485BPOS) — filed 2022-06-03
• Portfolio holdings (N-PORT) — filed 2024-05-30
• Portfolio holdings (N-PORT) — filed 2024-02-27
• Portfolio holdings (N-PORT) — filed 2023-11-30
• Annual census (N-CEN) — filed 2023-09-13

Related Funds

Other Alternative funds tracked on ABC INVEST:

• iShares 0-3 Month Treasury Bond ETF (SGOV)
• Vanguard Short-Term Inflation-Protected Securities Index Fund (VTAPX)
• SPDR® Bloomberg Barclays 1-3 Month T-Bill ETF (BIL)
• Vanguard Inflation-Protected Securities Fund (VIPSX)
• iShares 0-1 Year Treasury Bond ETF (SHV)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.