First-Ever Carbon Neutral Commodity Futures Index ETF (NYSE: AMPD) Launches from CNIC Funds and Tidal Financial Services
The passively managed fund leverages unique electricity futures contract methodology through ICE-backed index
HOUSTON–(BUSINESS WIRE)–CNIC Funds, LLC, (CNIC) an investment company that develops commodity-based investment products in partnership with Tidal Financial Services, LLC (Tidal), proudly announces the launch of the exchange-traded fund, CNIC ICE U.S. Carbon Neutral Power Futures Index ETF (NYSE: AMPD).
AMPD is based on U.S. electricity and carbon allowance futures contracts and seeks to track the performance of the ICE U.S. Carbon Neutral Power Index (ticker: ICECNPIT) that was launched on January 18, 2023, by Intercontinental Exchange, Inc. (ICE).
With continued historic inflation, AMPD seeks to deliver investors with a financial instrument that provides inflation mitigation and better portfolio diversification than other commodity-based products currently in the market. Despite electricity’s growing impact on the global economy, it is not directly included in any of the existing major commodity indices.
“Electricity plays a critical role in all aspects of manufacturing and transportation and with a high correlation between the CPI and electricity prices, we believe there is a significant need in the marketplace for this product,” said Timothy J. Kramer, chief executive officer of CNIC. “CNIC is proud to partner with Tidal Financial Services in bringing AMPD to the market as the only commodity-based carbon neutral product that seeks to provide inflation mitigation and portfolio diversification.”
AMPD will track ICECNPIT’s advanced roll methodology that utilizes a 12-month rolling calendar of electricity futures contracts from the six major U.S. power pools. This roll methodology is structured with an attempt to provide sustainable returns while minimizing the seasonality and volatility of the U.S. power market.
“We are pleased to have CNIC list a new ETF benchmarked to the ICE U.S. Carbon Neutral Power Index,” said Varun Pawar, Head of ICE Data Indices. “Leveraging ICE’s deep understanding of commodities and innovative approach to index construction, and a methodology licensed from CNIC, highlights the power of ICE Data Indices’ platform and our ability to offer investors solutions to meet their needs.”
“With the utilization of the six major U.S. power pools, ICECNPIT and AMPD will broadly represent total U.S. electricity consumption and the associated U.S. power prices. We believe there is significant investor demand for a carbon neutral commodity-based financial product and we are excited to be able to team up with ICE and Tidal Financial Services to bring these products to the market.,” said Donald R. Sinclair, Chairman of CNIC. “The launch of ICECNPIT and AMPD illustrates CNIC’s commitment to developing quantitative and market knowledge-based products for investors.”
ICE Data Indices, LLC, is used with permission. “ICE” is a service/trade mark of ICE Data Indices, LLC or its affiliates and has been licensed along with the ICE U.S. Carbon Neutral Power Index (“Index”) for use by CNIC, LLC in connection with CNIC ICE U.S. Carbon Neutral Power Futures Index ETF (the “Product”). Neither CNIC, LLC, Tidal Trust II (the “Trust”), nor the Product, as applicable, is sponsored, endorsed, sold or promoted by ICE Data Indices, LLC, its affiliates or its Third Party Suppliers (“ICE Data and its Suppliers”). ICE Data and its Suppliers make no representations or warranties regarding the advisability of investing in securities generally, in the Product particularly, the Trust or the ability of the Index to track general market performance. Past performance of an Index is not an indicator of or a guarantee of future results.
ICE DATA AND ITS SUPPLIERS DISCLAIM ANY AND ALL WARRANTIES AND REPRESENTATIONS, EXPRESS AND/OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, INCLUDING THE INDICES, INDEX DATA AND ANY INFORMATION INCLUDED IN, RELATED TO, OR DERIVED THEREFROM (“INDEX DATA”). ICE DATA AND ITS SUPPLIERS SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY WITH RESPECT TO THE ADEQUACY, ACCURACY, TIMELINESS OR COMPLETENESS OF THE INDICES AND THE INDEX DATA, WHICH ARE PROVIDED ON AN “AS IS” BASIS AND YOUR USE IS AT YOUR OWN RISK.
About Carbon Neutral Investment Company
CNIC is an investment organization responsible for developing and managing commodity-based investment products. Led by industry executives with 20-plus years of commodity, asset, risk management, and C-suite experience, CNIC applies rigorous fundamental and quantitative analysis with a qualitative overlay to address capital markets needs with innovative products.
About Tidal ETF Services
Formed by ETF industry pioneers and thought leaders, Tidal ETF Services, LLC sets out to thoughtfully disrupt the way ETFs have historically been developed, launched, marketed, and sold. With a focus on helping ETF issuers, Tidal offers a comprehensive suite of services, proprietary tools, and methodologies designed to bring lasting ideas to market. We are advocates for ETF innovation on a mission to help issuers efficiently and effectively launch their ETFs and optimize their growth potential in a highly competitive space. Learn more at tidaletfservices.com.
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks to connect people to opportunity. We provide financial technology and data services across major asset classes that offer our customers access to mission-critical workflow tools that increase transparency and operational efficiencies. We operate exchanges, including the New York Stock Exchange, and clearing houses that help people invest, raise capital and manage risk across multiple asset classes. Our comprehensive fixed income data services and execution capabilities provide information, analytics and platforms that help our customers capitalize on opportunities and operate more efficiently. At ICE Mortgage Technology, we are transforming and digitizing the U.S. residential mortgage process, from consumer engagement through loan registration. Together, we transform, streamline and automate industries to connect our customers to opportunity. Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here. FactSet® is a trademark of FactSet Research Systems, Inc. Other products, services, or company names mentioned herein are the property of, and may be the service mark or trademark of, their respective owners. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).” Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 — Statements in this press release regarding ICE’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE’s Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on February 3, 2022
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (855) 495-1500 or visit our website at www.cnicfunds.com. Read the prospectus or summary prospectus carefully before investing.
Energy Sector Risk. The energy sector is a major emitter of greenhouse gases, its activities may significantly impact the supply and demand of emissions allowances. Rolling Futures Contract Risk: The Fund will invest in and have exposure to futures contracts and is subject to risks related to “rolling” them. Rolling occurs when the Fund closes out of a futures contract as it nears its expiration and replaces it with a contract that has a later expiration. “Cap and Trade” Risk. The ICE California Carbon Allowance Futures Contracts and ICE Regional Greenhouse Gas Initiative Futures Contracts work on the “cap and trade” principle, whereby a cap is set on the total amount of greenhouse gases that can be emitted by the installations (or companies) covered by the system. Cayman Subsidiary Risk. By investing in the Subsidiary, the Fund is indirectly exposed to the risks associated with the Subsidiary’s investments. Commodity-Linked Derivatives Tax Risk. The tax treatment of commodity-linked derivative instruments may be adversely affected by changes in legislation, regulations, or other legally binding authority. Commodity Pool Regulatory Risk. The Fund’s investment exposure to futures instruments will cause it to be deemed to be a commodity pool, thereby subjecting the Fund to regulation under the CEA and CFTC rules. Illiquid Investments Risk. The Fund’s investments may at times become illiquid, this lack of liquidity could be caused by the absence of a readily available market or because of legal or contractual restrictions on sales. New Fund Risk. The Fund is a recently organized management investment company with no operating history. Passive Investment Risk. The Fund invests in the financial instruments included in or representative of the Index regardless of their investment merit. Tracking Error Risk. As with all index funds, the performance of the Fund and its Index may differ from each other for a variety of reasons. Volatility Risk: The price of futures contracts can be volatile and influenced by trade, fiscal, monetary and exchange control programs and political changes. Carbon Allowance Futures Contracts Risk. The value of carbon allowance futures at settlement is determined by reference to the spot price of eligible carbon allowances to be delivered.
The ICE U.S. Carbon Neutral Power Index tracks the broad U.S. electricity market on a carbon-neutral basis. The Index is constructed from electricity futures contracts listed by ICE Futures U.S., which represent the most liquid power futures contracts in the U.S., and carbon allowance futures contracts listed by ICE Futures U.S. designed to offset the carbon emissions from the associated electricity generation
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Sam Marinelli, Gregory FCA on behalf of CNIC Funds
sam@gregoryfca.com
610-246-9928
