FORGET STOCKS, IT’S EMISSIONS

Sick of Stocks? Trade Carbon
Zoe Van Schyndel, December 30, 2008 (The Motley Fool)

“Many investors have just about had it with stocks. And with ETF innovation continuing at breakneck pace, you can invest in markets that have just about nothing to do with investments you're familiar with…the AirShares EU Carbon Allowances Fund (NYSE: ASO) gives investors a chance to access the carbon trading market in Europe. The fund is an extension of the ETF concept, but instead of a mutual fund, it is organized as a commodity pool. The fund is the first exchange-traded product that provides exposure to carbon emission markets without counterparty credit risk. Although shares of the fund may be bought and sold like other exchange-traded vehicles, there are some significant differences…

“Inception date: Dec. 15, 2008…Expense ratio: 0.85%…Net assets: $5 million…

“…the AirShares fund is passively managed and does not track an index; instead, it tracks a basket of exchange-traded futures contracts for European Union Allowances (EUAs), which permit the holder to emit carbon dioxide. The portfolio of the AirShares fund consists of a basket of up to four listed December EUA futures contracts. These investments are unleveraged and are collateralized by cash, cash equivalents, and U.S. government obligations…”