The passively managed fund leverages unique electricity futures contract methodology through ICE-backed index
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.
“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.”
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).
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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.”
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“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.
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