CNIC Funds, in partnership with Tidal Financial Services, has announced the launch of the CNIC ICE U.S. Carbon Neutral Power Futures Index ETF (NYSE: AMPD). This exchange-traded fund is based on U.S. electricity and carbon allowance futures contracts and aims to track the performance of the ICE U.S. Carbon Neutral Power Index (ticker: ICECNPIT), which was launched by Intercontinental Exchange, Inc. (ICE) in January 2023.
AMPD is designed to provide investors with a financial instrument that offers inflation mitigation and improved portfolio diversification compared to other commodity-based products in the market. It addresses the significant role electricity plays in manufacturing, transportation, and its high correlation with the Consumer Price Index (CPI).
Timothy J. Kramer, CEO of CNIC, highlights the need for a product like AMPD that focuses on electricity due to its critical importance and the demand in the marketplace. AMPD is positioned as the only commodity-based carbon neutral product that aims to offer inflation protection and portfolio diversification.
The ETF will track the advanced roll methodology of ICECNPIT, which utilizes a 12-month rolling calendar of electricity futures contracts from the six major U.S. power pools. This methodology aims to deliver sustainable returns while reducing the seasonality and volatility of the U.S. power market.