KRANESHARES GLOBAL CARBON STRATEGY ETF (KRBN)

What this ETF is trying to do

The KRANESHARES GLOBAL CARBON STRATEGY ETF (ticker: KRBN) is an exchange-traded fund designed to track carbon market strategies. Based on its top holdings, the fund currently holds a significant amount of short-duration index funds and money market instruments.

What the numbers show

The performance of KRBN can be looked at in two ways: price return and total return. Price return only tracks how the share price moves, while total return includes the impact of distributions.

• Year-to-Date (YTD): The YTD price return is approximately -5.06%. The YTD total return is also approximately -5.06%.

• One Year: The one-year price return was approximately -0.56%. However, the one-year total return was approximately 1.34%.

• Three Year: The three-year price return was approximately -7.46%, while the three-year total return was approximately 4.94%.

• Five Year: The five-year total return was approximately 20.59%.

The current price of the ETF is $33.61. An estimated price from roughly one year ago was approximately $33.80.

Income and distribution explanation

KRBN has a distribution yield of approximately 2.00%. This means the cash distributions represent about 2% of the ETF's price. The trailing distributions over the last year totaled approximately $0.67 per share.

It is important to note that the distribution frequency for this ETF is described as "irregular" or "less frequent," with only one payout recorded in the last 12 months. Because the total return figures are higher than the price return figures over the one-year and three-year periods, it shows that distributions have added value to the overall return.

NAV erosion explanation

The fund has an erosion-risk score of 94, which is labeled as "Stable / sideways," and the erosion severity is rated as "good." There is no severe erosion-risk flag for this ETF.

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion. While the share price has seen some declines in certain timeframes, the erosion-risk score suggests the price movement is currently considered stable or sideways.

Pros

• The ETF has a positive five-year total return of approximately 20.59%.

• The total return has historically been higher than the price return, meaning distributions have helped boost overall performance.

• The erosion-risk score is considered "good."

Cons

• The YTD price return is negative at approximately -5.06%.

• Distributions are irregular and do not happen on a frequent, predictable schedule.

Beginner takeaway

When looking at KRBN, it is important to distinguish between the share price and the total return. While the share price has fluctuated, the total return (which includes distributions) has shown different results over one, three, and five-year periods. Because the distributions are irregular, investors should not rely on them as a steady source of regular income.