Monday, December 7, 2009

A Great ETF To Play Carbon Dioxide Being Declared A Hazard

The Environmental Protection Agency said today that greenhouse gases are a danger to public health, a decision that may lead to new emissions regulations, in the form of new emission standards for cars, while potentially opening up large emitters such as power plants, crude-oil refineries and chemical plants to limits on their output of carbon dioxide and other gases.

"These long overdue findings cement 2009's place in history as the year when the U.S. government began addressing the challenge of greenhouse-gas pollution and seizing the opportunity of clean-energy reform," said Lisa Jackson, EPA administrator.

Regardless of whether you are believe in global warming or deny it, a potentially good way to profit from this decision is ghrough the Global Carbon Capture ETF, GRN. It is an iPath ETF, and it is up 6% today, but is done 6% YTD:

Note that we track all commodity ETFs live here.

As a bonus, GRN is uncorrelated to pretty much all other commodity ETFs on the maket. That is a huge plus for diversification, please see our previous article.

About GRN:

The Barclays Capital Global Carbon Index Total Return™ ("BGCITR") is designed to measure the performance of the most liquid carbon-related credit plans and is designed to be an industry benchmark for carbon investors. Each carbon-related credit plan included in the BGCITR is represented by the most liquid instrument available in the marketplace. The BGCITR expects to incorporate new carbon-related credit plans as they develop around the world. The BGCITR currently includes two carbon-related credit plans: European Union Emission Trading Scheme or EU ETS Phase II and Kyoto Protocol's Clean Development Mechanism.

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