Meritz Securities Launches Korea's First European Carbon Emission Allowance ETN

[Asia Economy Reporter Ji Yeon-jin] Meritz Securities (CEO Choi Hee-moon) announced on the 8th that it has launched the country's first exchange-traded note (ETN) tracking the European carbon emission allowances futures, the world's largest carbon emissions market.

The products were launched in two types depending on currency hedging: ▲Meritz S&P European Carbon Emission Allowances Futures ETN (H) ▲Meritz S&P European Carbon Emission Allowances Futures ETN.

Carbon emission allowances are rights to emit greenhouse gases. Companies can use greenhouse gases within their allocated emission allowances, and any surplus or deficit allowances can be traded in the market. Due to global carbon neutrality policies, carbon emission allowances, known as Green raw materials, are emerging as a new investment asset for investors.

The 'Meritz S&P European Carbon Emission Allowances' tracks the 'S&P GSCI Carbon Emission Allowances ER' index, which consists of carbon emission allowances futures traded in Europe, the world's largest carbon emissions market. Investors can invest without tracking error except for management fees in European carbon emission allowances futures listed on the ICE Futures Exchange. Depending on investor preference, currency-hedged or currency-exposed products are available, with annual fees of 0.30% and 0.40%, respectively.

Lee Joong-hoon, Executive Director of Meritz Securities Derivatives Division, said, "Recently, as countries worldwide announce eco-friendly policies, demand for carbon emission allowances is increasing," adding, "With this listing, investors will be able to conveniently invest in European carbon emission allowances futures products."

This content was produced with the assistance of AI translation services.