NEW YORK--(BUSINESS WIRE)--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.
VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. We were one of the first U.S asset managers to offer investors access to international markets. This set the tone for the firm’s drive to identify asset classes and trends -including gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006- that subsequently shaped the investment management industry.
Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of July 31, 2019, VanEck managed approximately $49.9 billion in assets, including mutual funds, ETFs, and institutional accounts. The firm’s capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and transparency are key to the experienced decision-making around market and index selection underlying VanEck’s passive strategies.
Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the firm’s mission.
1GRNB’s gross expense ratio is 1.02% and net expense ratio is 0.20%. Expenses are capped contractually at 0.20% until at least 9/1/20. This cap excludes certain expenses, such as acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses.
An investment in the VanEck Vectors® Green Bond ETF (GRNB®) may be subject to risks which include, among others, green bonds, investing in European and emerging market issuers, foreign securities, foreign currency, credit, interest rate, high yield securities, supranational bond, government-related bond, restricted securities, securitized/asset-backed securities, financial services, utilities, market, operational, call, sampling, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversified and concentration risks, all of which may adversely affect the Fund.
An investment in the VanEck Vectors® Low Carbon Energy ETF (SMOG) may be subject to risks which include, among others, investing in alternative energy companies, investing in European issuers, foreign securities, foreign currency, depository receipts, industrials sector, information technology sector, small- and medium-capitalization companies, equity securities, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified and concentration risks, all of which may adversely affect the Fund. Foreign investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, and changes in currency exchange rates which may negatively impact the Fund's return. Small- and medium-capitalization companies may be subject to elevated risks.
The S&P Green Bond U.S. Dollar Select Index (the “Index”) is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by the Adviser. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). The trademarks have been licensed to SPDJI and have been sublicensed for use for certain purposes by the Adviser. VanEck Vectors Green Bond ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices does not make any representation or warranty, express or implied, to the owners of VanEck Vectors Green Bond ETF or any member of the public regarding the advisability of investing in securities generally or in VanEck Vectors Green Bond ETF particularly or the ability of the Green Bond Index to track general market performance. S&P Dow Jones Indices’ only relationship to the Adviser with respect to the Green Bond Index is the licensing of the Green Bond Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors.
Index returns are not Fund returns and do not reflect any management fees or brokerage expenses. Certain indices may take into account withholding taxes. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses. Index returns assume that dividends have been reinvested.
Fund shares are not individually redeemable and will be issued and redeemed at their net asset value (NAV) only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Shares may trade at a premium or discount to their NAV in the secondary market. You will incur brokerage expenses when trading fund shares in the secondary market. Past performance is no guarantee of future results.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.