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 (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
Distributed by Foreside Fund Services, LLC
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230519005231/en/
Media Sam Marinelli, Gregory FCA on behalf of CNIC Funds
sam@gregoryfca.com 610-246-9928
Tidal Trust II (NYSE:AMPD)
Historical Stock Chart
From Apr 2024 to May 2024
Tidal Trust II (NYSE:AMPD)
Historical Stock Chart
From May 2023 to May 2024