New ETC from WisdomTree on Xetra: access to emission certificates from California for the first time

Since Thursday, a new exchange-traded commodity from WisdomTree has been tradable on Xetra and via Börse Frankfurt.

For the first time, the WisdomTree California Carbon ETC gives investors access to trading carbon futures contracts issued by the California Air Resources Board. It tracks the performance of futures contracts on CO2 emission certificates, ICE California Carbon Allowance Vintage Future. Through a rolling mechanism, active futures contracts are rolled into the next active futures contract over a period of 15 days. The rolling period begins on the first trading day in October.

Emissions trading is an instrument of environmental policy to reduce greenhouse gas emissions. Companies that emit carbon dioxide (CO2) must have so-called emission allowances in the form of certificates. If a company wants to emit more carbon dioxide than it owns certificates, it can buy the emission allowances from other companies.

NameAsset classISINManagement feeReference index
WisdomTree California Carbon ETCETCJE00BNG8LN890.99 per centSolactive California Carbon Rolling Futures ER Index

The product offering in Deutsche Börse’s XTF segment currently comprises a total of 2,050 ETFs, 188 ETCs and 235 ETNs. With this selection and an average monthly trading volume of around €19 billion, Xetra is the leading trading venue for ETFs in Europe.

Published on April 20, 2023

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