'Green bond' ETF launched by VanEck

Fund is collection of debt used to finance pro-environment projects

Mar 6, 2017 @ 1:09 pm

By InvestmentNews

VanEck has launched what it claims is the first "green bond" exchange-traded fund.

The VanEck Vectors Green Bond ETF (GRNB) consists of bonds issued "to finance projects or activities that promote climate change mitigation or adaptation, or for other environmental sustainability purposes," the firm said in a release.

VanEck said issuance of green bonds has grown rapidly since the European Investment Bank issued the first green bond in 2007. According to the Climate Bonds Initiative (CBI), an investor-focused nonprofit working to promote large-scale investment in the low-carbon economy, $81 billion of green bonds were issued in 2016 and $150 billion is expected to be issued in 2017.

(More: Impact investing in the age of President Trump)

The new VanEck ETF seeks to track the performance and yield characteristics of the S&P Green Bond Select Index (SPGRNSLT), whose requirements for securities include a bond issuer's disclosure of the rationale for issuance, the use of proceeds and being flagged as "green" by the CBI.

"Green bonds are simply conventional bonds with an environmentally friendly use of proceeds," said Ed Lopez, head of ETF product management and marketing at VanEck. "Global bond investors can make an allocation to green bonds without significantly altering the risk and return profile of their portfolio."

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

How are financial services reacting to 'Times Up?'

There is much left to be done to reach full equality, say Estee Jimerson of Envestnt, but things are improving.

Latest news & opinion

Morningstar evolving well beyond its origins analyzing mutual funds

Led by CEO Kunal Kapoor, firm is moving way past ratings — and financial advisers are paying close attention.

Focus Financial IPO could be a sell signal for RIAs

The $100 million stock offering will fine-tune RIA valuations.

Ex-Edward Jones broker sues former firm, alleging racial bias

Complaint alleges the firm's policies limit African-Americans' 'income and advancement opportunities'

Piwowar defends SEC's best-interest rule

SEC commissioner says the Department of Labor rule set up an 'unworkable, impossible set of standards for people to comply with.'

RIA in a Box acquired by private equity firm Aquiline Capital

New owners plan more growth for the software service provider.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print