UN-backed climate ETF “on brink of failure”… Now that’s funny!

If you are among the 99.9% of literate people who know what an ETF is, please skip the following explanation…

What Is an Exchange-Traded Fund (ETF)?

An exchange-traded fund (ETF) is a type of pooled investment security that operates much like a mutual fund. Typically, ETFs will track a particular index, sector, commodity, or other asset, but unlike mutual funds, ETFs can be purchased or sold on a stock exchange the same way that a regular stock can. An ETF can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities. ETFs can even be structured to track specific investment strategies.

The first ETF was the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 Index, and which remains an actively traded ETF today.

Investopedia

Now, back to our story…

Guest “Now that’s funny right there” by David Middleton

Climate ETF on brink of failure months after UN summit launch

Financial Times

FT (Financial Times) appears to be very touchy about being quoted. So I won’t quote anything other than the headline in this post.

Impact Shares MSCI Global Climate Select ETF (NTZO) was launched with great fanfare during COP 26 in Glasgow…

UN and partners launch climate-focused ETF
By Adva Saldinger // 08 November 2021

The United Nations and exchange-traded funds may seem an unusual combination. But on Wednesday, nonprofit ETF manager Impact Shares, in partnership with the U.N. Capital Development Fund, launched a climate-focused ETF.

The Impact Shares MSCI Global Climate Select ETF, or NTZO ETF, will be managed by Impact Shares, which is backed by The Rockefeller Foundation. It includes companies that meet a set of strict climate and other criteria.

Unlike some other climate ETFs, NTZO completely excludes all companies that own or profit from fossil fuels. It also requires participants to adhere to the principles of the United Nations Global Compact and bars any that profit from weapons, guns, alcohol, tobacco, or palm oil.

[…]

Devex

NTZO has apparently drawn little more than net-zero interest from investors, amassing less than $2 million and will likely be shut down in March according to the Financial Times.

Why is NTZO about to go net zero?

NTZO is constructed with the aim to track the performance of the MSCI ACWI Climate Pathway Select Index (the “Index”). The Index is constructed from the MSCI ACWI Index by excluding securities based on certain ESG and Climate Change related criteria, followed by an optimization-based approach that aims to:

*Increase the exposure to companies participating in opportunities associated with the transition to a low carbon economy.

*Increase the weight of companies with science-based emission reduction targets.

*Follow a decarbonization trajectory: reduce Index’s weighted average carbon intensity by at least 7% YoY and 30% relative MSCI ACWI Index.

*Significantly improve the ESG profile of the Index: at least 25% higher index’s ESG Score (weighted average ESG Score of index constituents) compared to MSCI ACWI Index.

[…]

Impact Shares

Here’s a comparison with Proshares Ultra Oil & Gas ETF (DIG):

NTZO (blue) vs DIG (black), Market Watch

NTZO avoids all of the stocks that DIG goes long on.

IHS Markit Ltd? I interpret 3d seismic surveys on an IHS platform and download well logs from an IHS database. Among the many upstream oil & gas related products and services IHS provides are:

I use multiple IHS products and services every day I go to work exploring for oil & gas. Of course, all of these products and services run on Microsoft operating systems. And pretty well every map and cross section I generate winds up as an Adobe PDF. Do you think NTZO fund managers realize that the oil & gas industry benefits from IHS, Microsoft, Adobe and many other tech companies they invest in? Just ask Greenpeace…

How Tech Companies are Helping Big Oil Profit from Climate Destruction

Greenpeace

Larry the Cable Guy would say:

https://memegenerator.net/instance/69435996/larry-the-cable-guy-now-thats-funny-i-dont-care-who-you-are
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February 23, 2022 11:08 pm

“completely excludes all companies that own or profit from fossil fuels”
Pretty sure all of those companies own some fossil fuels in the tanks of their cars/trucks

p.s. I also use Kingdom daily

Bryan A
Reply to  David Middleton
February 24, 2022 5:09 am

Until you mentioned NetZero I thought NTZO stood for NUTZO. Still do!

D. J. Hawkins
Reply to  Bryan A
February 24, 2022 6:51 am

No reason it can’t be both. I view them as synonymous terms.

Dave Fair
Reply to  David Middleton
February 24, 2022 8:51 am

Are Landmark and Kingdom condom brands? Maybe I, too, should switch? Any and all advice from WUWT denizens is appreciated.

Reply to  David Middleton
February 24, 2022 4:34 pm

I also started using Landmark in 88, but probably a bit off topic so won’t bring up my views on the pros and cons of Landmark/Kingdom/Insight seismic data handling (and I dare not mention the evil blue one 🙂

Alan the Brit
February 23, 2022 11:37 pm

It is amazing how money, & lots of it, always seeps into Climate Change concerns & worries, oh & scary stories I suppose!!! How very strange!!!

Coeur de Lion
February 23, 2022 11:53 pm

A ‘real world’ impact.

Alexy Scherbakoff
February 24, 2022 12:55 am

Is this like giving out an open invitation to a birthday party and nobody turns up?

Last edited 3 months ago by Alexy Scherbakoff
LdB
Reply to  Alexy Scherbakoff
February 24, 2022 12:58 am

More like an open invitation to cover-charge party that no-one turns up to

=> “Impact Shares has been spending about $25,000 a month to manage the ETF”
The management wasn’t doing it for free they were trying to get snouts in the trough.

Last edited 3 months ago by LdB
Reply to  LdB
February 24, 2022 7:51 am

Yes!

When companies running the trading claim to be “nonprofit”, there is a problem! Where is their incentive?

But on Wednesday, nonprofit ETF manager Impact Shares, in partnership with the U.N. Capital Development Fund, launched a climate-focused ETF.”

Dave Fair
Reply to  ATheoK
February 24, 2022 9:01 am

All money-making entities must make a profit to survive. The only difference is how the profits are divvied up. For example, cooperatives normally distribute portions of its accumulated profits on an annual or other long-term basis to their member/consumers.

Just one of the problems for a “non-profit” is that without profit there is no way to survive downturns of any sort. That is one of the reasons socialistic systems always fail; they eat the Goose that Lays the Golden Egg (free market capitalism).

observa
February 24, 2022 1:38 am

Larry the cable guy can laugh now but just you wait and see with all those stranded assets-
China starts building 33 GW of coal power in 2021, most since 2016 -research (msn.com)

Xi on blower to Putin: How’s the annexation of Ukraine going”

Putin: No worries with the woke broke West needing 30% of their gas from us. Shouldn’t be too long before you can annexe Taiwan now they’re almost completely reliant on your solar panels and batteries.

Xi: Yeah just got to get this Evergrande thing sorted and ready to roll to get our hands on those chip factories. All the best comrade.

observa
Reply to  observa
February 24, 2022 3:53 am

Meanwhile back in woke broke land they want more Greening-
Wind Industry Warns EU to Take Urgent Action as China Rises (energyconnects.com)

All that free electricity from Gaia and they can’t compete with expensive coal power! What’s their problem here? griff will have to explain it to us.

Clyde Spencer
Reply to  observa
February 24, 2022 10:08 am

I think that the European NATO members should put turbines on their tanks. They can take advantage of the wind from their forward speed to power the tanks. It would be a good incentive to never retreat as they would then lose power.

Vuk
February 24, 2022 2:01 am

…..

Last edited 3 months ago by Vuk
John Endicott
Reply to  Vuk
February 24, 2022 5:05 am

ah, a man of few (no) words.

Richard Page
Reply to  John Endicott
February 24, 2022 5:28 am

Why waste any where none are necessary.

DonM
Reply to  Richard Page
February 24, 2022 11:38 am

https://youtu.be/CdhIaiOirSE

‘why waste time say lot word when few word do trick’

Last edited 3 months ago by DonM
fretslider
February 24, 2022 2:26 am

Can I have some of your money….

MarkW
Reply to  fretslider
February 24, 2022 8:34 am

If you can loan me 20, I’ll loan you 10.

Ron Long
February 24, 2022 2:44 am

Thanks, David. Looks like it’s still true: P.T. Barnum”A fool and his money are soon parted”.

Tom Abbott
February 24, 2022 3:29 am

From the article: “FT (Financial Times) appears to be very touchy about being quoted. So I won’t quote anything other than the headline in this post.”

That, I don’t understand. That would be like waving a red flag in front of a bull, to me. So what if the Financial Times is touchy? Give me the quote and I’ll quote it.

Tom Abbott
Reply to  David Middleton
February 24, 2022 5:02 am

I see.

John Endicott
Reply to  David Middleton
February 24, 2022 5:14 am

You mean like this (1st para is the text they add to the copy, the 2nd (starting with “A UN-backed…”) is what I actually highlighted and copied):

Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found at https://www.ft.com/tour.

https://www.ft.com/content/84196790-2030-44d7-988c-b6e3408f9b4b

A UN-backed green investment fund is on the brink of failure three months after its launch during the Glasgow climate summit because institutions including big banks never delivered expected seed funding.

Sorry FT, but quoting excerpts for commenting upon is generally considered fair use and not a breach of copyright no matter how much “scare text” you insert into the copy.

Last edited 3 months ago by John Endicott
Tom Abbott
Reply to  John Endicott
February 24, 2022 6:01 am

“Sorry FT, but quoting excerpts for commenting upon is generally considered fair use and not a breach of copyright no matter how much “scare text” you insert into the copy.”

Exactly right.

To be fair to FT, they discouraged copying “articles”, which would be a breach of copyright. But most people don’t do that, they abide by the rules and do excerpts which are perfectly legal.

Clyde Spencer
Reply to  David Middleton
February 24, 2022 10:19 am

And WUWT and I were annoyed by an academic who was upset that I cited his published work for an article where I was asserting an interpretation of data that was opposite to his conclusions. He specifically complained that he didn’t like his work being used to support conclusions he didn’t agree with. While I didn’t say it, my thoughts went to the infamous quote of Sitting Bull to General Custer: “TS pale face!”

MarkW
Reply to  Clyde Spencer
February 24, 2022 11:44 am

Reminds me of Phil Jones whining “Why should I show you my data when I know you’ll try and find something wrong with it”.

Tom Abbott
Reply to  David Middleton
February 25, 2022 3:37 am

“When it comes to asserting fair use vs, getting annoying emails from litigious publishers/journalists, my policy is to take the option that will lead to less headaches for WUWT”

I think I now see why you are a little careful about copyrights. There was more to the story. 🙂

rhs
Reply to  David Middleton
February 24, 2022 8:10 pm

Don’t copy paste, paraphrase!

Trying to Play Nice
February 24, 2022 3:33 am

Are you a nasty bot or a stupid real person?

Tom in Florida
Reply to  Trying to Play Nice
February 24, 2022 4:20 am

Griff x10^42

Carbon Bigfoot
Reply to  Trying to Play Nice
February 24, 2022 5:13 am

Griff’s cousin.

Reply to  Trying to Play Nice
February 24, 2022 9:27 am

Artificial Stupidity isn’t quite that advanced yet.

Sunsettommy(@sunsetmpoutlookcom)
Editor
Reply to  Trying to Play Nice
February 24, 2022 9:42 am

He is a real person who rants and rants a lot, this comment has no evidence produced so it is just another meaningless rant.

2hotel9
February 24, 2022 4:09 am

Buddy, I don’t know for certain where you are commenting, it clearly is not here.

Tom in Florida
February 24, 2022 4:10 am

If you are so right, and everyone else is so wrong, why do you care?

Carlo, Monte
Reply to  Tom in Florida
February 24, 2022 4:31 am

He should be rich by now, having exploited all the correct predictions of the IPCC/watermelons.

John Endicott
Reply to  Tom in Florida
February 24, 2022 4:55 am

He’s a bot or troll. Either way, it/he doesn’t care.

Clyde Spencer
Reply to  Tom in Florida
February 24, 2022 9:58 am

If he had the courage of his convictions he would keep quiet and just sell short. He could then tell us he had the last laugh, and will be enjoying his new mansion in Martha’s Vineyard.

2hotel9
February 24, 2022 4:10 am

So, a financial ponzi scheme created by a bunch of lie spewing socialist a$$wipes is already collapsing. Okely dokely.

Tom in Florida
February 24, 2022 4:25 am

The #1 rule in investing is to take the emotions out and proceed on facts and data. Emotional investing always fails. A lesson usually learned the hard way.

Dave Fair
Reply to  Tom in Florida
February 24, 2022 9:09 am

No lesson learned when one is using OPM.

John Endicott
February 24, 2022 5:03 am

LOL. NTZO High: $20.20 in Nov 2021 when it started, Low $17.97 (Yesterday) If you were to simply draw a straight line between those two points, you’d end up with a chart that practically mirrors the actual price movement of NTZO (it’s been a pretty smooth and steady march downward, no really large swings in price). In short a loser since day 1.

Tom Abbott
Reply to  John Endicott
February 24, 2022 6:03 am

I suppose that NTZO stands for Net Zero?

The investors would be better off buying gold.

John Endicott
Reply to  Tom Abbott
February 24, 2022 7:10 am

Apparent Net Zero was an optimistic name for the fund, as it’s been a Net Loss. LOL.

2hotel9
Reply to  Tom Abbott
February 24, 2022 7:48 am

With which they can buy food and ammunition.

Joel O’Bryan(@joelobryan)
Reply to  John Endicott
February 24, 2022 6:29 am

The fund manager takes $25,000 in management fee to pay himself. That’s where the steady the decline comes from. It only attracted 2 big individual investors and only had $2million under management. One Swiss investor put in $1million. The other put in $500,000 usd. The rest came from banks like Santander, BofA, that pledged to invest in it but with caveat that only minority stakes of no more than 5% to 20% of assets under management.

One investor quoted in the article said, they “resented” the way the fund was pitched.
The fund manager is Ethan Powell, founder of Dallas-based Impact Shares, the fund manager,… someone to avoid giving your money to.

Joel O’Bryan(@joelobryan)
Reply to  Joel O’Bryan
February 24, 2022 6:55 am

Correction: $25,000 per month management fee.

Clyde Spencer
Reply to  Joel O’Bryan
February 24, 2022 10:23 am

Or, 15% annually of the money under management.

Danley Wolfe
February 24, 2022 5:24 am

Not interested in Larry the Cable Guy bit.

Mumbles McGuirck
Reply to  Danley Wolfe
February 24, 2022 5:44 am

Pucker up, buttercup.

NekkidLarry.jpg
Reply to  David Middleton
February 24, 2022 8:00 am

Looks like Kahlua and milk.
Good for the stomach as well as the mood!

MarkW
Reply to  Danley Wolfe
February 24, 2022 8:38 am

Condolences

Mumbles McGuirck
February 24, 2022 5:45 am

I assume you can take a short position on ETFs? Might seem a wise move.

Joel O’Bryan(@joelobryan)
Reply to  Mumbles McGuirck
February 24, 2022 6:33 am

most brokerages don’t allow naked shorts. See post above by Mumbles to know why.

Joel O’Bryan(@joelobryan)
Reply to  David Middleton
February 24, 2022 7:03 am

The problem with shorts now is the Robinhood crowd can band together and drive up the price, buy those Calls, and make a [kil ling ] on the short sellers.

Joel O'Bryan(@joelobryan)
Reply to  David Middleton
February 24, 2022 10:00 am

Trading on insider information will get you Federal jail,… unless you’re a member of Congress.

Mumbles McGuirck
Reply to  Joel O'Bryan
February 24, 2022 12:58 pm

Instead of “Richer than Croeus” you’ll be “Richer than Creases”™, which is Nancy Pelosi’s new nickname.

Earl Rodd
February 24, 2022 6:30 am

Goodness, they hold Google – one of the biggest energy users on the planet which one way or another is largely fossil fuel dependent!

D. J. Hawkins
February 24, 2022 6:50 am

Mark Ingraham, your tin-foil hat is on too tight.

Clyde Spencer
Reply to  D. J. Hawkins
February 24, 2022 10:01 am

I think the problem is that it isn’t tight enough and some 6G radiation from the future is managing to leak in. Perhaps he should use design specifications from “The Man in the Iron Mask.”

February 24, 2022 7:43 am

NTZO has apparently drawn little more than net-zero interest from investors, amassing less than $2 million and will likely be shut down in March according to the Financial Times.”

Investing in a sector repeatedly wracked with bankruptcies indicates extreme hubris and delusion.

Clyde Spencer
Reply to  ATheoK
February 24, 2022 10:31 am

The ‘woke’ crowd is impressed by symbolic actions. (Like Super-glue sniffing while prone on the pavement.) They are now appropriately paying for it. However, I wonder how BofA customers and stockholders feel about squandering money on symbolic actions.

Mumbles McGuirck
Reply to  Clyde Spencer
February 24, 2022 1:00 pm

Those Canadian truckers shoulda Super Glued™ their 18-wheelers to the roadway, eh?

Reply to  Clyde Spencer
February 28, 2022 7:17 pm

I knew some kids that sniffed airplane glue dumped into a paper bag back in the sixties. It damaged their critical thinking skills far more than I can attribute to solvent.

Puzzling. I’ve wondered if their deep breathing in those bags caused lack of oxygen damage to the brain. They’d inhale those bags until they fainted.

TonyG
Reply to  ATheoK
March 1, 2022 9:04 am

It damaged their critical thinking skills far more than I can attribute to solvent.

Perhaps you have cause and effect reversed?

Keith Harrison
February 24, 2022 8:10 am

Understand the poor results, but isn’t that how stakeholder capitalism or ESG are supposed to work? Invest money, make none, but do good!

Why would anyone shutdown a fund that Larry Fink and his like tell us plebs is the way of the new pathway to a better place?

MarkW
February 24, 2022 8:32 am

Millions of Chinese and Indians are already dying?
According to you, we should have completely run out of oil months ago.

Ingraham has been banned for his desire to bomb every thread and force everyone to talk about what he wants to talk about. He’s also incapable of seeing any data that doesn’t match whatever delusion he’s pushing today. He’s a lot like Barry.

TonyG
Reply to  MarkW
February 24, 2022 12:10 pm

Ingraham has been banned for his desire to bomb every thread…

Wasn’t he banned from his own blog?

jeffery p
February 24, 2022 8:40 am

Most people who talk about peak oil haven’t a clue. No reason to believe you’re any different.

MarkW
Reply to  jeffery p
February 24, 2022 9:17 am

Not just peak oil, but he’s claiming we are have actually run out of oil and government is hiding it from us.

markl
February 24, 2022 8:45 am

Just because the MSM constantly trumpets climate change fears doesn’t mean the people believe it.

Dave Fair
Reply to  markl
February 24, 2022 9:18 am

Its the old “some of the time” can last a long time problem.

MarkW
February 24, 2022 9:16 am

Off topic, but less that Ingraham’s usual logorrhea.

https://www.foxnews.com/politics/john-kerry-russia-ukraine-war-climate-change

BobM
Reply to  MarkW
February 24, 2022 10:40 am

Just shows how extraordinarily lucky we were that this man didn’t become President.

Joseph Zorzin
Reply to  MarkW
February 24, 2022 10:47 am

he’s terrified that the climate hoax may evaporate

Doonman
Reply to  Joseph Zorzin
February 25, 2022 6:31 pm

You have to boil ketchup before it can be bottled. It’s good to know Heinz uses all fossil free energy to do that.

But one must wonder where all the carbon free plastic bottles come from since Heinz abandoned silica based glass bottles years ago.

Clyde Spencer
February 24, 2022 9:55 am

At this rate inventory will hit zero in six months and American will starve by 2025.

Please be sure to come back in 6-months to rub it in when your prediction comes true. If it doesn’t, you can use the space to officially move your goalpost.

MarkW
Reply to  Clyde Spencer
February 24, 2022 11:40 am

He actually believes that the oil wells will continue to gush at current rates, and then one day, their output will suddenly drop to nothing in a matter of minutes, and he’s the only one who has figured this out.

wadesworld
February 24, 2022 9:55 am

Dr Erhlich, is that you?

R.T.Dee
February 24, 2022 1:25 pm

NTZO = Not So (according to the economically literate).
Net Zero: An ace tennis shot just scraping the top of the net. A virtual impossibility to attain.

bonbon
February 24, 2022 1:48 pm

Glad to hear IHS stuff is used – although a lot of that stuff was developed on Integraph Microstation Unix, Oracle, and proprietary C++ – I should know…

yarpos
February 24, 2022 10:23 pm

“reality of peak oil” are you from the 1970s?

Pat from Kerbob
February 25, 2022 11:21 am

Wow, so what you are saying is we don’t have to worry about CO2 wiping us out in 2030?

Great
party time

February 26, 2022 9:42 am

American will starve by 2025″

“America” will starve .. lose the “n” 😉
Paul Ehrlich must have sown his wild oats in whatever exotic country you come from.
Need help getting a green card?

February 26, 2022 9:45 am

So we have to see that geezer touching his own moobs every time there’s an article with a humour element?

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