Both strategies offer Canadian investors the chance to participate in the growth of the global carbon credits markets.
According to Lanz, the carbon credit market is worth approximately US$850 billion today, and some analysts predict it could exceed US$22 trillion in the next 30 years.
Because they provide investors with exposure to a climate-related theme expected to undergo substantial growth in the coming years, Lanz says they arguably represent a thematic investment in a climate-related theme.
Cochrane notes that both the Ninepoint and the Horizons ETFs offer exposure to carbon allowances from cap and trade programs; carbon allowances, in essence, represent the quantity of carbon companies in certain regulated markets are allowed to emit in a given year.