TD Asset Management (TDAM) has launched TD Global Carbon Credit Index ETF, a new low-cost exchange traded fund providing investors with global exposure to the growing carbon credit market.
"Governments across the globe have adopted the practice of pricing greenhouse gas emissions to tackle climate change,” said Bruce Cooper, Chief Executive Officer, TDAM and Senior Vice President, TD Bank Group. “With this in mind, carbon credits have emerged as an important alternative asset class by putting a price on carbon and creating a market in which companies can trade emissions permits.”
New ETF to track global carbon credits
This ETF seeks to track, to the extent reasonably possible and before the deduction of fees and expenses, the performance of a global carbon credits market index. Currently, it aims to track the Solactive Global Carbon Credit CAD Hedged Index, which measures the investment return of global cap-and-trade carbon emission credits.
"In addition to participating in the transition from fossil fuels to more sustainable energy sources, we expect positive returns from the carbon credit market as well as added diversification benefits within a portfolio," said Cooper. "This new ETF offers investors a convenient and low-cost way to participate in a unique market that benefits from the increase in the price of carbon."
Features of the new ETF include exposure to a growing market, diversification and growth opportunities as well as a management fee of 0.65 per cent.
