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Thoughts on Carbon Credits & the XCO2 ETF

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Thoughts on Carbon Credits & the XCO2 ETF

If it's not too late this week, is it possible to get your views on having continued exposure to carbon credits and the XCO2 ETF as a vehicle for doing so, including appropriate entry points. Do you see this as an exposure with a lot of potential upside over time?

Answer

Hi Darren,

Firstly thanks for mentioning a cut off time, for subscribers that aren’t aware its 12 O’clock on Friday.

Carbon credits aren’t our area of expertise, this might even be the first time we’ve specifically discussed the XCO2 ETF – its only got a $4.3mn market cap which illustrates the lackluster pick up be investors.

Hence we can only comment on this ETF from a “charting perspective” – technically it looks good risk/reward around the $22 area, or 3% lower.

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Carbon credits ETF (XCO2)
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