Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

VanEck

  •   14 December 2022
  •      
  •   

Australia’s first Carbon Credits ETF added to platforms

Sydney, 14 December, 2022 – VanEck today announced that its Global Carbon Credits ETF (Synthetic) (ASX: XCO2) has been added to key platforms managed by HUB24, AMP and BT.

Since its launch on ASX on 13 October 2022, XCO2 has returned 16.39%1 (after fees) to 12 December 2022 and is continuing to attract strong interest from platforms, financial advisers and brokers.

Arian Neiron CEO and Managing Director VanEck, Asia Pacific, said: “XCO2 has generated a great deal of investor interest, well ahead of our expectations. We believe this growth will continue into 2023.”

XCO2 is an Australian first that offers instant access via the ASX to an investment in carbon markets which are viewed as a vital tool to help in the fight against climate change. XCO2 tracks the ICE Global Carbon Futures Index, which sources carbon credit futures prices from the four most actively traded and largest carbon markets and emission trading schemes (ETS) in the world. These are the European Union Emissions Trading Scheme, the Western Climate Initiative (California Cap and Trade Program), the Regional Greenhouse Gas Initiative (RGGI) and the UK Emissions Trading Scheme.

Since its launch XCO2 has been added to HUB24 Invest - CHOICE, AMP MyNorth Investments, BT Panorama Investments and ANZ Grow Wrap Investments, with a number of other platforms signalling XCO2 will be added imminently.

“In the time since we launched XCO2, we have been impressed by the desire to learn about this new asset class. In addition, as part of an overall review, we’ve decided to reduce XCO2’s management fee. The review also examined our operational performance and efficiency,” said Neiron.

“While XCO2’s new fee is in line with similar investments, it provides exposure to the largest and most liquid carbon markets in the world and is managed by a pioneering global firm with an established history in alternative asset classes and futures trading.”

“Carbon credits have historically been lowly correlated to mainstream asset classes and can be potentially used as a hedge against the impact of carbon emissions risks on investor portfolios. XCO2 allows investors to take advantage of the potential rise of carbon credit prices by giving investors access to the biggest global emissions trading schemes.”

“Any rise in carbon prices may also support responsible investing and incentivise pollution reduction schemes and policies as governments work harder to meet global climate agreements. Companies too are better aligning their production with environmental, social, and governance (ESG) investment goals, and many are using carbon credits to do this,” said Neiron.

1 Source: Morningstar Direct

 

  •   14 December 2022
  •      
  •   
banner

Most viewed in recent weeks

The growing debt burden of retiring Australians

More Australians are retiring with larger mortgages and less super. This paper explores how unlocking housing wealth can help ease the nation’s growing retirement cashflow crunch.

Warren Buffett's final lesson

I’ve long seen Buffett as a flawed genius: a great investor though a man with shortcomings. With his final letter to Berkshire shareholders, I reflect on how my views of Buffett have changed and the legacy he leaves.

LICs vs ETFs – which perform best?

With investor sentiment shifting and ETFs surging ahead, we pit Australia’s biggest LICs against their ETF rivals to see which delivers better returns over the short and long term. The results are revealing.

13 ways to save money on your tax - legally

Thoughtful tax planning is a cornerstone of successful investing. This highlights 13 legal ways that you can reduce tax, preserve capital, and enhance long-term wealth across super, property, and shares.

Why it’s time to ditch the retirement journey

Retirement isn’t a clean financial arc. Income shocks, health costs and family pressures hit at random, exposing the limits of age-based planning and the myth of a predictable “retirement journey".

The housing market is heading into choppy waters

With rates on hold and housing demand strong, lenders are pushing boundaries. As risky products return, borrowers should be cautious and not let clever marketing cloud their judgment.

Latest Updates

Interviews

AFIC on the speculative ASX boom, opportunities, and LIC discounts

In an interview with Firstlinks, CEO Mark Freeman discusses how speculative ASX stocks have crushed blue chips this year, companies he likes now, and why he’s confident AFIC’s NTA discount will close.

Investment strategies

Solving the Australian equities conundrum

The ASX's performance this year has again highlighted a persistent riddle facing investors – how to approach an index reliant on a few sectors and handful of stocks. Here are some ideas on how to build a durable portfolio.

Retirement

Regulators warn super funds to lift retirement focus

Despite three years under the retirement income covenant, regulators warn a growing gap between leading and lagging super funds, driven by poor member insights and patchy outcomes measurement.

Shares

Australian equities: a tale of two markets

The ASX seems a market split in two: between the haves and have nots; or those with growth and momentum and those without. In this environment, opportunity favours those willing to look beyond the obvious.

Investment strategies

Dotcom on steroids Part II

OpenAI’s business model isn't sustainable in the long run. If markets catch on, the company could face higher borrowing costs, or worse, and that would have major spillover effects.

Investment strategies

AI’s debt binge draws European telco parallels

‘Hyperscalers’ including Google, Meta and Microsoft are fuelling an unprecedented surge in equity and debt issuance to bankroll massive AI-driven capital expenditure. History shows this isn't without risk.

Investment strategies

Leveraged single stock ETFs don't work as advertised

Leveraged ETFs seek to deliver some multiple of an underlying index or reference asset’s return over a day. Yet, they aren’t even delivering the target return on an average day as they’re meant to do.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.