“Investors are increasingly incorporating environmental and social factors into their investment process, alongside traditional financial risk and return metrics,” said Ed Lopez, Head of ETF Product with VanEck, in a statement. “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.”
Green bonds also often feature low correlations to other fixed income assets, a possible advantage for income investors at a time of diverging monetary policies throughout much of the developed world.
GRNB has a 30-day SEC yield of 1.38%. The fund is down 4.08% year-to-date.
For more information on the fixed-income markets, visit our bond ETFs category.