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 launchFinancial 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.
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.
Here’s a comparison with Proshares Ultra Oil & Gas ETF (DIG):
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:
- Kingdom™ Seismic and geological interpretation software
- Geological interpretation software using Petra™
- Upstream Energy Information
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 DestructionGreenpeace
Larry the Cable Guy would say:
“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
I used Landmark most of the time from 1988 to 2017. However, I gradually switched over to Kingdom from 2017-2020. I wish I had switched sooner.
Until you mentioned NetZero I thought NTZO stood for NUTZO. Still do!
No reason it can’t be both. I view them as synonymous terms.
Are Landmark and Kingdom condom brands? Maybe I, too, should switch? Any and all advice from WUWT denizens is appreciated.
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 🙂
I used Geoquest from 1997 to 2001… It wasn’t awful. On the whole, I prefer Kingdom.
It is amazing how money, & lots of it, always seeps into Climate Change concerns & worries, oh & scary stories I suppose!!! How very strange!!!
A ‘real world’ impact.
Is this like giving out an open invitation to a birthday party and nobody turns up?
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.
When companies running the trading claim to be “nonprofit”, there is a problem! Where is their incentive?
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).
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.
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.
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.
ah, a man of few (no) words.
Why waste any where none are necessary.
‘why waste time say lot word when few word do trick’
Can I have some of your money….
If you can loan me 20, I’ll loan you 10.
Thanks, David. Looks like it’s still true: P.T. Barnum”A fool and his money are soon parted”.
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.
When you attempt to cut & paste from the text of the article, you get stern earn about copyright issues.
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):
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.
“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.”
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.
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. The full text of the FT article can be read by clicking the link.
In the past, I think Anthony has been threatened by the New York Times for quoting their articles. And we were threatened by a journalist for using his copyrighted photo in a post that I wrote. That’s why, I try to source as many images as possible from government websites.
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!”
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”.
“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. 🙂
Don’t copy paste, paraphrase!
Are you a nasty bot or a stupid real person?
Griff on Adderall… 🤪
Artificial Stupidity isn’t quite that advanced yet.
He is a real person who rants and rants a lot, this comment has no evidence produced so it is just another meaningless rant.
Buddy, I don’t know for certain where you are commenting, it clearly is not here.
If you are so right, and everyone else is so wrong, why do you care?
He should be rich by now, having exploited all the correct predictions of the IPCC/watermelons.
He’s a bot or troll. Either way, it/he doesn’t care.
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.
So, a financial ponzi scheme created by a bunch of lie spewing socialist a$$wipes is already collapsing. Okely dokely.
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.
No lesson learned when one is using OPM.
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.
I suppose that NTZO stands for Net Zero?
The investors would be better off buying gold.
Apparent Net Zero was an optimistic name for the fund, as it’s been a Net Loss. LOL.
With which they can buy food and ammunition.
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.
Correction: $25,000 per month management fee.
Or, 15% annually of the money under management.
Not interested in Larry the Cable Guy bit.
Pucker up, buttercup.
Looks like Kahlua and milk.
Good for the stomach as well as the mood!
I assume you can take a short position on ETFs? Might seem a wise move.
most brokerages don’t allow naked shorts. See post above by Mumbles to know why.
The problem with shorts is that the price can’t fall below zero-point-zero.
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.
Trading on insider information will get you Federal jail,… unless you’re a member of Congress.
Instead of “Richer than Croeus” you’ll be “Richer than Creases”™, which is Nancy Pelosi’s new nickname.
Goodness, they hold Google – one of the biggest energy users on the planet which one way or another is largely fossil fuel dependent!
Mark Ingraham, your tin-foil hat is on too tight.
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.”
Investing in a sector repeatedly wracked with bankruptcies indicates extreme hubris and delusion.
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.
Those Canadian truckers shoulda Super Glued™ their 18-wheelers to the roadway, eh?
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.
It damaged their critical thinking skills far more than I can attribute to solvent.
Perhaps you have cause and effect reversed?
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?
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.
Ingraham has been banned for his desire to bomb every thread…
Wasn’t he banned from his own blog?
Most people who talk about peak oil haven’t a clue. No reason to believe you’re any different.
Not just peak oil, but he’s claiming we are have actually run out of oil and government is hiding it from us.
Just because the MSM constantly trumpets climate change fears doesn’t mean the people believe it.
Its the old “some of the time” can last a long time problem.
Off topic, but less that Ingraham’s usual logorrhea.
Just shows how extraordinarily lucky we were that this man didn’t become President.
he’s terrified that the climate hoax may evaporate
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.
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.
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.
Dr Erhlich, is that you?
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.
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…
“reality of peak oil” are you from the 1970s?
Wow, so what you are saying is we don’t have to worry about CO2 wiping us out in 2030?
“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?
So we have to see that geezer touching his own moobs every time there’s an article with a humour element?