Global warming is becoming an issue that few can ignore, and perhaps an exchange traded fund (ETF) will soon be dedicated to tracking the issue.
The first step toward that is already on its way: investment bank UBS is set to unveil a derivatives index that will track the greenhouse effect, reports the Financial Times. The index is designed to follow along with the price of carbon emission credits and global temperatures – as those rise, so will the index.
According to the UBS website, the UBS Global Warming Index is primarily composed of weather monthly futures contracts in 15 U.S. cities. As that market grows, the index will likely add other non-U.S. cities.
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