ETF Watch: VanEck Plans Green Bond Fund

VanEck makes a filing for what could be the first ‘green’ bond ETF in the U.S.

ETF.com
|
Reviewed by: etf.com Staff
,
Edited by: etf.com Staff

A fonrecent filing from VanEck outlines plans for an ETF that would focus on bonds that are issued with “green” goals in mind. The VanEck Vectors Green Bond ETF is set to list on the NYSE Arca and will invest in investment-grade and high-yield securities.

The prospectus identifies green bonds as fixed-income securities issued for purposes such as climate mitigation, climate adaptation or a variety of environmentally beneficial goals.

Fund Goals

Those goals can include developing clean and renewable energy sources, energy efficiency and natural-resource conversation. Component securities can be issued by corporate or government organizations and must have a “clearly defined use of proceeds,” the prospectus said.

It noted that the index includes 155 bonds from 88 issuers, with a weighted average maturity of 6.14 years, as of Oct. 28.

There has been a resurgence in environmental/socially responsible/governance ETF filings and launches during 2016, so it’s not surprising to see a fixed-income fund put into registration.

The filing did not include a ticker or expense ratio.

Contact Heather Bell at [email protected].

 

etf.com is the single source for ETF intelligence. We provide real-time ETF news and analysis to educate investors and drive financial knowledge in the space. Our personalized and accurate information, alongside industry-leading financial tools, are depended upon to develop winning investment and financial decisions. At etf.com, we strive to serve both the individual investor as well as the professional financial advisor to educate and grow the ETF community.