“Today there are almost $475 billion in green bonds outstanding, with over $150 billion issued in 2017 alone,” said Schulten. “That market is global and spread across a range of public and corporate issuers.”
Over 44% of BGRN’s holdings are agency or super-national debt while another 15.65% are issued by financial institutions. About 61% of the new ETF’s holdings have maturities ranging from three to 10 years.
Green bonds “offer investors the ability to pair their financial and environmental objectives,” said Schulten. “Investors can still access the bond market as a way of seeking income and adding diversification in a broad portfolio. At the same time, they can know that their investment will go towards funding projects designed to address climate and other environmental issues.”
BGRN’s portfolio is highly rated as 77% of its holdings have AAA, AA or A credit ratings. The new ETF charges 0.20% per year, or $20 on a $10,000 investment.
For more information on new fund products, visit our new ETFs category.