Inside The Impressive Recent Gains For The iPath Global Carbon ETN (GRN)

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September 19, 2017 1:00pm NYSE:GRN


Don’t look now, but an obscure fund that we reported on nearly one year ago in this piece (9/28/16) when it had a $5 handle, has risen precipitously since mid-August with a notably uptick in trading volume.

GRN (iPath Global Carbon ETN, Expense Ratio 0.75%), which is the only ETP of its kind in terms of being linked to the “Carbon Allowances” segment, is trading with a high $8 handle presently. Volatility seems to be the name in this particular segment and fund, for if one goes back on a chart for GRN one will note that in spite of scant trading volume on an average daily basis (the fund averages only about 2,200 shares traded daily) the fund certainly can move several standard deviations in no time flat.


As we profiled in the past when we covered GRN last September, iPath’s website states “The Index is designed to measure the performance of the most liquid carbon-related credit plans. Each carbon-related plan included in the Index is represented by the most liquid instrument available in the marketplace. The Index expects to incorporate new carbon-related credit plans as they develop around the world.”

Trading at a new 52-week high just last Thursday before settling in to current levels, GRN trading volume has increased relative to its paltry daily averages, as we have seen a couple sessions where more than 10,000 shares exchanges hands daily. Of course with only $1.2 million invested in the fund currently though, it is far from maturity in spite of debuting back in 2008, and rarely sees any notable creation activity, just short-term retail type trading it seems.

The fund invests in little known “ICE ECX EUA Futures,” which like the ETN itself, is likely a market still mostly in obscurity. As we argued last year when we covered the fund at significantly lower levels, with all of the talk about “Global Climate Change,” we would expect such a fund and perhaps segment to attract more popularity and attention in ETP land — and thus it has caught our interest once again today thanks to the short term momentous move higher.

The iPath Global Carbon ETN (NYSE:GRN) was trading at $8.54 per share on Tuesday afternoon, down $0.03 (-0.35%). Year-to-date, GRN has gained 12.22%, versus a 12.87% rise in the benchmark S&P 500 index during the same period.

GRN currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #68 of 130 ETFs in the Commodity ETFs category.

Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Paul Weisbruch

paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.

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