VanEck announced today that it has lowered the expense ratio on VanEck Vectors® Green Bond ETF (GRNB®). Effective September 1, the expense cap for GRNB was reduced from 0.40% to 0.30%.1 GRNB is the first and only U.S.-listed ETF providing targeted exposure to the fast-growing green bond market. It seeks to track 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. Additionally, bonds must be flagged as “green” by the Climate Bonds Initiative (“CBI”), an investor-focused non-profit organization that is working to promote large-scale investment in the low carbon economy.
“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. “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.”
GRNB was named 2017’s Best New ETF and Best New ESG ETF by ETF.com, and is part of VanEck’s growing lineup of innovative fixed income ETFs, which also includes VanEck Vectors J.P. Morgan EM Local Currency Bond ETF (EMLC), VanEck Vectors Emerging Markets High Yield Bond ETF (HYEM), VanEck Vectors High-Yield Municipal Index ETF (HYD), and VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL).
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, 2018, VanEck managed approximately $48 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 1.56% and net expense ratio is 0.30%. Expenses are capped contractually at 0.30% until at least 9/1/19. This cap excludes certain expenses, such as acquired fund fees and expenses, interest, trading, taxes and extraordinary expenses.
An investment in the Fund may be subject to risks which include, among others, credit rating downgrades, issuers that may be unable and/or unwilling to make timely interest payments and/or repay the principal on its debt, high yield securities risk, call risk, and interest rate risk, all of which may adversely affect the Fund. International investing involves additional risks which include greater market volatility, the availability of less reliable financial information, higher transactional and custody costs, taxation by foreign governments, decreased market liquidity and political instability. Changes in currency exchange rates may negatively impact the Fund's return. The Fund's assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors.
The S&P Green Bond 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 Van Eck Associates Corporation (“VanEck”). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by VanEck. VanEck Vectors Green Bond ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Index.
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. Returns for actual fund investments may differ from what is shown because of differences in timing, the amount invested and fees and expenses.
Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise. 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.
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