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Barclays on Thursday launched 11 new exchange-traded notes through its
iPaths lineup, including a much-anticipated fund tracking carbon emissions.
Others have also been racing to get a similar alternative energy ETF or ETN
out the door. But the notes, underwritten by the giant London-based bank, has
gained first-mover status in what no doubt will be a hotly contested field.
Linked to the Barclays Capital Global Carbon Index Total Return, the iPath
Global Carbon ETN (NYSE Arca: GRN) is the first ETN designed to provide
investors with exposure to the global price of carbon.
With global warming gaining increasing attention and being addressed with
new urgency, indexes are being created to capture the market for trading carbon
in world markets.
Such so-called carbon emission credits are traded by companies who get tax
breaks and other incentives for lowering pollutants into the air. These
standards are designed to set limits on the amount of a pollutant that can be
released into the atmosphere and allocates credits among companies creating
emissions. Those that do not use all their emissions credits can sell them to
companies that need them.
By some estimates, the global carbon market is worth more than $50 billion a
year.
XShares has in registration an exchange-traded fund to invest in futures
contracts traded in the European Union based on carbon emissions allowances.
Besides GRN, the 10 others introduced carve up the Dow Jones-AIG Commodity
Index Total Return into subsectors:
- iPath Dow Jones-AIG Tin Total
Return Sub-Index ETN (NYSE Arca: JJT)
- iPath Dow Jones-AIG Sugar
Total Return Sub-Index ETN (NYSE Arca: SGG)
- iPath Dow Jones-AIG Softs
Total Return Sub-Index ETN (NYSE Arca: JJS)
- iPath Dow Jones-AIG Precious
Metals Total Return Sub-Index ETN (NYSE Arca: JJP)
- iPath Dow Jones-AIG Platinum
ETN Total Return Sub-Index (NYSE Arca: PG)
- iPath Dow Jones-AIG Lead ETN
Total Return Sub-Index (NYSE Arca: LD)
- iPath Dow Jones-AIG Cotton
Total Return Sub-Index ETN (NYSE Arca: BAL)
- iPath Dow Jones-AIG Coffee
Total Return Sub-Index ETN (NYSE Arca: JO)
- iPath Dow Jones-AIG Cocoa
Total Return Sub-Index ETN (NYSE Arca: NIB)
- iPath Dow Jones-AIG Aluminum
Total Return Sub-Index ETN (NYSE Arca: JJU)
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