It is an exchange traded fund that aims to go green in more ways than one.

The Emerging Markets Carbon Reduction and Climate Improvers ETF (EMCR), run by DWS Group, invests in public companies that reduce their carbon footprint. It is a global strategy that seems to be paying off. It has increased by 57% in the past two years.

According to Arne Noack, the company’s head of systematic investment solutions, this style of net-zero carbon reduction strategy is in high demand.

“EMCR is a broadly diversified emerging markets index that really strives to track the market cap-weighted index,” he told CNBC’s “ETF Edge” last week.

Noack, who runs the ETF, wants to help reduce its carbon footprint by 60%, even as the urgency changes.

Prices in the carbon credit market have collapsed due to the war between Russia and Ukraine.

“The agenda has shifted somewhat, quite understandably,” Noack said Monday. “But in the long run, the topic of climate change and carbon reduction will come back on a broader agenda.”

Despite the strong performance of the ETF, it has run into difficulties. EMCR is down 3% since Russia invaded Ukraine last month. Plus, it’s 5% off so far this year.


This post An ETF focused on markets that reduce the carbon footprint

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