VanEck Announces Lower Expense Ratio and Index Change For VanEck Vectors Green Bond ETF (GRNB)
VanEck announced that the expense ratio of the VanEck Vectors Green Bond ETF (GRNB) has been lowered, and the fund’s underlying index has changed. Effective September 1, 2019, the expense cap for GRNB has been reduced from 0.30% to 0.20%,1 and the fund seeks to track, before fees and expenses, the performance of the S&P Green Bond U.S. Dollar Select Index.
The fund’s new index is comprised of U.S. dollar-denominated green bonds that are issued to finance projects expected to have a positive environmental impact. To be eligible for inclusion, issuers must disclose the bond’s use of proceeds, and the bond must be designated as green by the Climate Bonds Initiative (CBI) based on its assessment of the projects being financed. The CBI is an investor-focused non-profit organization that is working to promote large-scale investment in the low carbon economy.
VanEck regularly evaluates fund expenses to identify opportunities to lower shareholder costs, and has a history of reducing fees when possible. This latest fee reduction allows investors to build a sustainable investment portfolio at a lower cost.
“Interest in sustainable investing continues to grow, as investors increasingly recognize the long-term impact that risk factors, such as climate change, may have on their portfolios,” said Bill Sokol, ETF product manager at VanEck. “Green bonds may be an attractive environmental, social, and governance (ESG) solution for fixed income investors because they are a straightforward and direct way to invest sustainably. Investors can incorporate U.S. dollar-denominated green bonds into a core fixed income allocation without sacrificing yield or adding currency risk.”
VanEck has been a signatory of the Principles for Responsible Investment (PRI) since March 2017. Our approach to responsible investment within our active strategies includes incorporating ESG factors into the investment process and actively engaging with the companies we invest in. VanEck also offers passively managed ETFs that allow investors to efficiently build liquid, transparent and low-cost sustainable investment portfolios. In addition to GRNB, which is the only U.S.- listed ETF providing targeted exposure to the U.S. dollar-denominated green bond market, VanEck also offers VanEck Vectors Low Carbon Energy ETF (SMOG), which provides access to companies engaged in clean and alternative energy.