The VanEck Vectors Green Bond ETF (NYSEArca: GRNB), the first fixed income exchange traded fund offering exposure to green bonds, is getting less expensive for investors to own following a recent fee cut.
GRNB’s annual expense ratio has been reduced to 0.30%, or $30 on a $10,000 investment, from 0.40%. The new expense ratio went into effect on Sept. 1st.
Green bonds are debt securities issued to finance projects that promote climate change mitigation or adaptation or other environmental sustainability purposes. The new breed of green bonds gained momentum in global market ever since the European Investment Bank issued the first green bond in 2007.
GRNB tracks the S&P Green Bond Select Index, which is “comprised of labeled green bonds that are issued to finance environmentally friendly projects, and includes bonds issued by supranational, government, and corporate issuers globally in multiple currencies,” according to VanEck.
GRNB holds 133 bonds and has an effective duration of 6.38 years.