VanEck Vectors Green Bond ETF (GRNB): Price and Financial Metrics ETF

VanEck Vectors Green Bond ETF (GRNB) ETF Bio

The investment objective of the VanEck Vectors Green Bond ETF tracks the S&P Green Bond Select Index, a subindex of the broader S&P Green Bond Index, which covers a wide variety of debt securities. According to the methodology, for a bond to be included in the broad index, it must be designated as “green” by its issuer, with reasons clearly articulated, and it must be classified as “green” by the Climate Bonds Initiative, a nonprofit organization that looks to encourage investment in climate change solutions. The subindex underlying GRNB requires that bonds be issued in G10 currencies, although they may be issued in any market. And while the broad index requires a component bonds have at least one month to maturity at rebalancing, the subindex requires 24 months to maturity. The subindex’s methodology caps individual issuers at 10% of the index and the high-yield portion of the index at 20%. In the broadest sense, green bonds are bonds that are intended to finance environmentally friendly projects.