VanEck has lowered the expense ratio on VanEck Vectors Green Bond ETF (GRNB). Effective 1 September, the expense cap for GRNB was reduced from 0.40 per cent to 0.30 per cent.
GRNB is the first and only US-listed ETF providing targeted exposure to the fast-growing green bond market. It seeks to track the S&P Green Bond Select Index, which is comprised of labelled green bonds that are issued to finance environmentally friendly projects, and includes bonds issued by supranational, government, and corporate issuers globally in multiple currencies.
Additionally, bonds must be flagged as “green” by the Climate Bonds Initiative (CBI), an investor-focused non-profit organization that is working to promote large-scale investment in the low carbon economy.
“Investors are increasingly incorporating environmental and social factors into their investment process, alongside traditional financial risk and return metrics,” says Ed Lopez, Head of ETF Product with VanEck. “There is increasing recognition that incorporating these factors may result in better long-term investment outcomes. This fee reduction will allow investors to build sustainable fixed income portfolios that have a positive environmental impact, without a significant impact to their risk and return profile.”
Source ETF Express