The objective of the TD Worldwide Carbon Credit Index ETF is to track, as closely as is practical and prior to deducting fees and expenditures, the performance of a global carbon credits market index. Its current benchmark, the Solactive Global Carbon Credit CAD Hedged Index, gauges the investment return of international cap-and-trade carbon emission credits.
“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,” Cooper said.
The unique TD ETF offers investors exposure to a market with attractive long-term growth potential, as the market for carbon credits has shown phenomenal growth in trading volumes as well as carbon prices.
It also unlocks opportunities for diversification and growth, as carbon credits give exposure to the energy transition economy, while having historically had little correlation with traditional asset classes like fixed income and equities.
TCBN also provides competitively priced exposure to the carbon credit market. Its management fee of 0.65% is among the lowest in North America for this asset class, TDAM said.
