At a glance
KCCA charges 0.95% a year, above the 0.86% average of the 7 funds most like it (the 6th cheapest of 8). It has $116.6M in assets, the 8th largest of that group; it paid 2.79% of its price in distributions over the past 12 months, annual. Over the past year it returned −0.2% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned −7.4% a year. At its worst it fell 29.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 17 months after the low.
The short version
KraneShares California Carbon Allowance Strategy ETF (KCCA) tracks the S&P Carbon Credit CCA Excess Return Index. That index holds futures on California Carbon Allowances, which are permits to emit greenhouse gases under the linked California–Quebec cap-and-invest program. The fund is a commodity pool and holds its futures through a Cayman Islands subsidiary. Its returns depend on climate policy in one regional market, not on stocks, and it charges 0.95% a year.
Price history
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KCCA -0.2% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| KCCA official prospectus, to Dec 31, 2025 | — | -11.56% | — | — | — | -1.93% |
| S&P 500 Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +17.88% | — | — | — | +13.24% |
| S&P Carbon Credit CCA Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | -10.75% | — | — | — | -0.62% |
| KCCA price data to Oct 27, 2026 | +2.3% | -0.2% | -7.4% | -2.3% | — | -1.3% |
- Over the year to Oct 27, 2026, KCCA returned -0.2%, 8th of 8 among similar funds.
- Its 5-year annualized return was -2.3%.
- Its worst full calendar year was 2022 (-17.5%); its best was 2023 (+34.1%).
- The deepest fall in its price history was 41.1% (Feb 5, 2024 to Apr 14, 2025), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +2.3% | — |
| 2025 | -11.8% | -11.56% |
| 2024 | -16.4% | +16.52% |
| 2023 | +34.1% | +34.05% |
| 2022 | -17.5% | -16.73% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 18.8% over that stretch · deepest drop along the way 29.5%, back to its old high 16.8 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.4800 | -92.0% |
| 2024 | $6.0000 | +538.3% |
| 2023 | $0.9400 | +1466.7% |
| 2022 | $0.0600 |
What's inside
As of Jun 30, 2026, the fund held 1 securities; the ten largest made up 79.05% of assets, and 3.4% sat in cash and money-market holdings.
| Fund held | Weight | |
|---|---|---|
| KRANESHARES SUST U S D I ETF MUTUAL FUND | 79.05% |
By country
United States 79.05%By asset type
Stocks 79.05%What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $5.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +5.32%, +7.88%, +1.15%.
How it works
The index measures futures contracts on California Carbon Allowances. It uses only contracts that expire in December of the next one or two years. Each allowance lets its owner emit one ton of carbon dioxide. Regulators set a cap on total emissions. Lowering the cap over time tends to make allowances scarcer and pricier, and raising it would do the opposite. Quebec's market has been linked to California's since 2014, and the prospectus says Quebec issues roughly 17–18% of the allowances each year.
The fund does not have to copy the index exactly. It may hold other expiry dates, weight contracts differently or trade on different dates. It holds the futures through a wholly owned Cayman Islands subsidiary, which tax rules limit to 25% of total assets at each quarter-end. Futures need only a small deposit, so most of the money sits in collateral. As of June 30, 2026, about 79% was in an affiliated KraneShares ETF and 3.4% was in cash. A single December 2026 allowance futures contract supplied exposure equal to about 100% of net assets.
An "excess return" index leaves out interest on collateral, so the fund aims for index returns plus whatever its collateral earns. It must keep at least 80% of net assets in California allowance exposure. The CFTC regulates it as a commodity pool. Turnover was 42%.
What it really costs
- KCCA charges 0.95% a year, versus an average of 0.86% for the similar funds below (6th of 8, cheapest first).
- Of that, 0.78% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $97 in the first year and $1,166 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| KCCA | $97 | $303 | $525 | $1,166 |
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
KCCA is a narrow bet on a single regulated carbon market, with deep drops in its record, so it fits best as a small side position rather than a core holding.
KCCA has moved independently of stocks. Its one-year beta was 0 as of October 27, 2026. It launched in October 2021, so it has no record in the 2008 or 2020 crashes. In the 2022 bear market it fell 29.5% between January 3 and March 7, 2022, and took about 17 months to recover. Its deepest drop was 41.1%, from February 2024 to April 2025, and it had not recovered as of October 27, 2026. Anyone who needs cash during a slump like that may have to lock in losses. It pays once a year, with a trailing yield of 2.79% as of October 27, 2026. Costs run $97 in the first year in the SEC's $10,000 example. Past results don't predict future returns. A plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want a small position tied to California–Quebec carbon allowance prices, which showed a one-year beta of 0 to stocks as of October 27, 2026.
- People who accept policy risk, since allowance prices depend on how regulators set, lower or raise the emissions cap.
- Long-horizon holders who can sit through deep drops, like the 41.1% fall from February 2024 to April 2025.
Look elsewhere if
- Investors wanting broad diversification: as of June 30, 2026, its exposure came from one December 2026 futures contract on one regional program.
- Cost-focused investors: the 0.95% expense ratio adds up to $1,166 over 10 years in the SEC's $10,000 example.
- Anyone who may need the money soon: the fund had not recovered its 2024–2025 losses as of October 27, 2026.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| KCCA this fund | 0.95% | $116.6M | -0.2% | -7.4% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
What does KCCA actually invest in?
KCCA invests in futures on California Carbon Allowances, which are permits to emit one ton of carbon dioxide under the linked California–Quebec program. As of June 30, 2026, a December 2026 allowance futures contract supplied exposure equal to about 100% of net assets. Most of the actual cash sat as collateral: about 79% in an affiliated KraneShares ETF and 3.4% in cash. Net assets were about $116.6 million.
Is KCCA good for a retirement portfolio?
KCCA is a high-risk satellite holding, not a core one. It has moved independently of stocks, with a one-year beta of 0 as of October 27, 2026. It has also fallen hard. Its deepest drop was 41.1%, from February 2024 to April 2025, and it had not recovered as of October 27, 2026. Its value depends on regulators' decisions about one regional carbon market, so it may suit only a small slice of a diversified portfolio.
Does KCCA pay a dividend?
Yes, but only once a year. Over the 12 months to October 27, 2026, it paid $0.48 per share, a trailing yield of 2.79%. Carbon allowances pay no income themselves. The fund's collateral, which sits in short-term holdings, is the natural source of earnings. Investors who need regular monthly or quarterly income would not get it here, and annual payouts can vary from year to year.
What is KCCA's expense ratio?
KCCA's expense ratio is 0.95% a year, per the prospectus filed July 29, 2026, and that includes a 0.78% management fee. In the SEC's standard example, $10,000 earning 5% a year would cost about $97 after one year, $303 after three, $525 after five and $1,166 after ten. That is a high price compared with broad stock index funds, though few funds offer this exact exposure.
How has KCCA performed compared with the S&P 500?
KCCA has trailed the S&P 500 by a wide margin. Through December 31, 2025, the fund returned -1.93% a year since its October 2021 launch, while the S&P 500 returned 13.24%. Its 2025 return was -11.56%, against 17.88% for the S&P 500. Results swing widely: it gained 34.05% in 2023 and lost 16.73% in 2022. Price returns as of October 27, 2026 were -0.2% over one year.