KEUA ETF — Holdings & Analysis

The KraneShares European Carbon Allowance Strategy ETF (KEUA) is an exchange-traded fund designed to track the performance of a portfolio of futures contracts on carbon credits issued under the European Union Emissions Trading System (EU ETS). The fund focuses on carbon credit futures that mature in December of the next one to two years. KEUA aims to provide investors with exposure to the European carbon allowance market, allowing them to participate in the potential upside of carbon credit prices as companies strive to meet emissions reduction targets. The fund invests at least 80% of its net assets in instruments that provide exposure to European carbon allowances.

The expense ratio for the KraneShares European Carbon Allowance Strategy ETF (KEUA) is 0.87%. This means that for every $10,000 invested in the fund, $87 is charged annually to cover operating expenses. While there isn't a directly comparable category average for carbon allowance ETFs, this expense ratio is relatively high compared to broader equity ETFs, where expense ratios can often be found below 0.50%. this may be worth researching cost when evaluating the potential returns of KEUA.

As of 2026-03-15, the top holdings in the KraneShares European Carbon Allowance Strategy ETF (KEUA) are: 1) Kraneshares Sust Ultra Shrt Dur Idx ETF (KCSH) at 66.06%, which is another ETF. 2) State Street Instl US Govt MMkt Premier (GVMXX) at 13.11%, a money market fund. These holdings indicate that KEUA's strategy involves investing in other ETFs and money market instruments to gain exposure to the carbon allowance market. The remaining holdings are smaller and contribute less significantly to the fund's overall performance.

Evaluating KEUA as a long-term investment requires careful consideration of its unique focus and associated risks. KEUA provides exposure to European carbon allowance futures, making it sensitive to changes in environmental regulations and carbon emission policies. The fund's expense ratio of 0.87% is relatively high, which can impact long-term returns. With a beta of 0.56, KEUA exhibits lower volatility compared to the broader market. Past performance does not guarantee future results, and investors should assess their risk tolerance and investment goals before considering KEUA for long-term investment.

KEUA is unique in its focus on European carbon allowance futures, making direct comparisons challenging. However, when considering similar ETFs that offer exposure to carbon-related markets, factors such as expense ratio, AUM, and investment strategy should be compared. KEUA's expense ratio of 0.87% may be higher than some broader market ETFs. The fund's AUM is relatively small, which could impact liquidity and trading costs. KEUA's strategy of investing in carbon allowance futures distinguishes it from ETFs that invest in carbon-reducing companies or clean energy technologies.

According to the provided data, the KraneShares European Carbon Allowance Strategy ETF (KEUA) has a dividend yield of 0.00%. This indicates that the fund does not currently distribute any dividends to its shareholders. Investors seeking income-generating investments may want to consider other ETFs with a history of dividend payments. The fund's focus is primarily on capital appreciation through exposure to European carbon allowance futures, rather than generating income through dividends.