“Issuance estimates for 2018 point to further growth. The Climate Bonds Initiative’s official estimate is for $250-300 billion of new green bonds,” according to VanEck.
Socially responsible investments have become an increasingly popular theme in the equities space, and fixed-income investors may also have the opportunity to retrofit their portfolios with a green bond exchange traded fund to potentially enhance overall returns while maintaining a socially responsible mindset.
Green funds remain a popular play, especially over the past decade as rising concerns over climate change helped fuel the investment theme. The investments typically draw younger and more environmentally minded investors who see profits in the nascent green industry.
“Green bond market growth shows no signs of slowing following last year’s record issuance. In fact, out of all possible bond types, heads of debt capital markets at 20 of the top investment banks are most optimistic about green bond volume,” said VanEck.
For more information on the fixed-income markets, visit our bond ETFs category.