Since Thursday, a new exchange-traded commodity from the issuer WisdomTree has been tradable via Xetra and Börse Frankfurt.
With WisdomTree Carbon, investors have access to trading in EU emission certificates for the first time. Emissions trading is an instrument of environmental policy to reduce greenhouse gas emissions. Companies that emit carbon dioxide (CO2) must have so-called emission rights in the form of certificates issued by the EU. If a company wants to emit more carbon dioxide than it has certificates for, it can buy the emission rights from other companies. Emissions trading in Europe was introduced in 2005 as part of the Kyoto climate change agreement.
The WisdomTree Carbon tracks the performance of futures contracts on European Union CO2 Emission Allowances. The futures contracts held in the index are rolled into the next futures contracts over a ten-day period each November.
|Name||Asset class||ISIN||Ongoing charges||Reference index|
|WisdomTree Carbon||ETC||JE00BP2PWW32||0.40 per cent||Solactive Carbon Emission Allowances Rolling Futures Index|
The product offering in Deutsche Börse’s XTF segment currently comprises a total of 1,697 ETFs and 217 ETPs. With this selection and an average monthly trading volume of around €17 billion, Xetra is the leading trading venue for ETFs in Europe.