At a glance
KRBN charges 0.91% a year. It has $138.2M in assets; it paid 1.93% of its price in distributions over the past 12 months, annual. Over the past year it returned +6.0% with distributions reinvested (S&P 500: +11.5%); over three years it returned +3.1% a year. At its worst it fell 36.4% in the 2022 bear market (S&P 500: 24.5%), and is still below its earlier high.
The short version
KraneShares Global Carbon Strategy ETF (KRBN) tracks the S&P Global Carbon Credit Index Excess Return, a basket of futures on carbon emission allowances from cap-and-trade programs in Europe, the UK and the US. It holds no company shares. Instead, it follows the price of the right to emit carbon, using futures, a Cayman Islands subsidiary and a GS Finance Corp. note. That makes it a narrow, volatile holding, and its expense ratio is 0.91%.
Price history
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KRBN +6.0% 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 | |
|---|---|---|---|---|---|---|
| KRBN official prospectus, to Dec 31, 2025 | — | +23.10% | — | +16.16% | — | +19.05% |
| S&P 500 Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +17.88% | — | +14.42% | — | +16.38% |
| S&P Global Carbon Credit Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +25.12% | — | +7.72% | — | +20.34% |
| KRBN price data to Oct 27, 2026 | -1.8% | +6.0% | +3.1% | +4.1% | — | +11.3% |
- Over the year to Oct 27, 2026, KRBN returned +6.0%.
- Its 5-year annualized return was +4.1%.
- Its worst full calendar year was 2024 (-13.6%); its best was 2025 (+23.1%).
- The deepest fall in its price history was 36.4% (Feb 4, 2022 to Mar 7, 2022), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -1.8% | — |
| 2025 | +23.1% | +23.10% |
| 2024 | -13.6% | -13.73% |
| 2023 | +8.0% | +6.58% |
| 2022 | -12.4% | -10.51% |
| 2021 | — | +108.83% |
| 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 28.2% over that stretch · deepest drop along the way 36.4%, not recovered by the end of the data |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.6700 | -67.8% |
| 2024 | $2.0800 | -24.9% |
| 2023 | $2.7700 | -66.9% |
| 2022 | $8.3600 |
What's inside
As of Jun 30, 2026, the fund held 2 securities; the ten largest made up 78.61% of assets, and 4.11% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| KRANESHARES SUST U S D I ETF MUTUAL FUND | 55.17% | |
| N/A Structured notes | 23.44% |
By country
United States 78.61%By issuer
Other registered funds 55.17%Other 23.44%The bonds mature in 0.6 years on average (weighted by size), with an average coupon of 0%.
Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $9.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -1.71%, +7.28%, +6.73%.
How it works
KRBN tracks the S&P Global Carbon Credit Index Excess Return. The index holds futures on emission allowances. Each allowance is a permit to emit one ton of carbon dioxide under a government "cap-and-trade" program, and the program shrinks the supply of permits over time. Only December contracts maturing in the next one to two years qualify, and each needs at least $10 million in average monthly trading volume over six months. Contracts are weighted by trading volume. Each program gets at least 5%, and no region gets more than 65%. The index rebalances twice a year.
The fund holds its futures through a wholly owned Cayman Islands subsidiary. Tax rules cap that subsidiary at 25% of total assets at each quarter-end. Regulators treat both the fund and the subsidiary as commodity pools. The fund does not have to copy the index exactly. As of June 30, 2026, its largest positions were a December 2026 California carbon allowance future (26.8% of assets), a GS Finance Corp. note tied to European allowance prices (23.4%), and smaller EU, UK and Regional Greenhouse Gas Initiative futures. A euro currency future (11.7%) helped manage currency exposure.
Futures need little cash up front, so most of the money sits as collateral: 55.2% in an affiliated KraneShares short-term bond ETF and 4.1% in cash. "Excess return" means the index counts only futures price moves. The fund adds whatever its collateral earns.
What it really costs
- KRBN charges 0.91% a year.
- 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 $93 in the first year and $1,120 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| KRBN | $93 | $290 | $504 | $1,120 |
In a retirement portfolio
It is a narrow, volatile position in carbon allowance prices: it gained 108.83% in 2021, then lost money in 2022 and 2024.
KRBN offers something most stock and bond funds lack: exposure to carbon prices. Those prices moved only loosely with stocks. The fund's one-year beta, a measure of how closely it tracks the market, was 0.55 as of October 27, 2026. The ride has been rough. The fund launched after the 2020 crash, so it has no 2008 or 2020 record. In the 2022 bear market it fell 28.2%. Its deepest drop, 36.4% from February 4 to March 7, 2022, had not been recovered as of October 27, 2026. Its worst calendar year was 2024, down 13.7%. Someone drawing on savings could be forced to cash out near a low. Income is modest: a 1.93% yield, paid once a year. Costs run 0.91% a year, or $93 in year one on $10,000 under the SEC example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a small position tied to carbon allowance prices in California, Europe, the UK and the northeastern US, rather than company shares.
- Those looking for an asset that moved only loosely with stocks, with a one-year beta of 0.55 as of October 27, 2026.
- People comfortable with policy risk, since prices depend on governments keeping, tightening or loosening their cap-and-trade programs.
Look elsewhere if
- Retirees needing steady income: the trailing yield was 1.93%, paid once a year, as of October 27, 2026.
- Cost-conscious investors: the 0.91% expense ratio adds up to $1,120 over 10 years on $10,000 under the SEC example.
- Anyone uneasy with futures, a Cayman subsidiary, or a 23.4% position in one GS Finance Corp. note that carries counterparty risk.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
No close alternatives found.
Questions investors ask
Is KRBN good for retirement?
KRBN is a specialized, volatile fund rather than a core retirement holding. It tracks carbon allowance futures. Its yearly results swung from a 108.83% gain in 2021 to a 13.73% loss in 2024. Its 36.4% drop from February to March 2022 had not been recovered as of October 27, 2026. It may suit investors who want a small position in carbon prices and can wait out long slumps without needing to cash out.
Does KRBN pay a dividend?
Yes, but only once a year, and the amount is modest. Over the 12 months to October 27, 2026, KRBN paid $0.67 per share, a 1.93% yield. Its returns include whatever its collateral earns, and most of that collateral sits in a short-term bond ETF. Payouts can vary from year to year. Retirees who need regular monthly or quarterly income may want to compare it with funds built for income.
What does KRBN actually hold?
As of June 30, 2026, KRBN got its carbon exposure mostly from futures and a note, not stocks. Its largest positions were a December 2026 California carbon allowance future (26.8% of assets) and a GS Finance Corp. note tied to European allowance prices (23.4%). December 2026 futures on EU, Regional Greenhouse Gas Initiative and UK allowances made up about 5% each. About 55.2% sat in an affiliated KraneShares short-term bond ETF as collateral.
What is KRBN's expense ratio?
KRBN's expense ratio is 0.91% a year, including a 0.78% management fee, according to the prospectus filed July 29, 2026. The SEC's standard example assumes $10,000 invested, a 5% yearly return and shares redeemed at the end of each period. On that basis, costs would total about $93 after one year, $290 after three, $504 after five and $1,120 after ten. No fund with closely matching holdings was found to compare that fee against.
How has KRBN performed compared with the S&P 500?
It depends heavily on the starting point. As of December 31, 2025, KRBN's five-year average annual return was 16.16%, compared with 14.42% for the S&P 500. But that window includes the fund's 108.83% gain in 2021. Measured on prices over the five years to October 27, 2026, KRBN returned only 4.1% a year. It also lost 10.51% in 2022 and 13.73% in 2024.