VanEck Green Bond ETF (GRNB)

ETF VanEck Green Bond ETF Summary:

Profile:

The VanEck Green Bond ETF (GRNB) invests in global, investment-grade, fixed-income, green bonds that are aligned with the Green Bond Principles (GBP). The fund targets a diversified portfolio of green bonds across various sectors, including renewable energy, energy efficiency, green buildings, sustainable transportation, and water management.

Objective:

GRNB seeks to provide long-term capital appreciation and current income while promoting environmental sustainability by investing in green bonds.

Issuer:

VanEck is a global investment manager with over 40 years of experience and $85.1 billion in assets under management (as of November 7, 2023). The firm is known for its innovative and thematic investment approaches, including its leadership in the green bond ETF space.

Market Share:

GRNB is the second-largest green bond ETF globally, with a market share of approximately 15.5%.

Total Net Assets:

GRNB has total net assets of approximately $1.44 billion as of November 7, 2023.

Moat:

• First-mover advantage in the green bond ETF space.
• Experienced and dedicated portfolio management team.
• Strong track record of performance.
• Commitment to environmental sustainability.

Financial Performance:

Since inception (November 14, 2019), GRNB has delivered a cumulative return of 12.53% (as of November 7, 2023). The fund has outperformed its benchmark, the Bloomberg Barclays Global Green Bond Index, over the same period.

Growth Trajectory:

The green bond market is expected to experience significant growth in the coming years, driven by increasing investor demand for sustainable investments and government policies supporting green initiatives. This growth trajectory bodes well for GRNB.

Liquidity:

GRNB has an average daily trading volume of approximately 65,000 shares, indicating good liquidity. The bid-ask spread is typically tight, suggesting low transaction costs.

Market Dynamics:

Factors influencing GRNB include:

• Interest rate changes: Rising interest rates could negatively impact bond prices.
• Economic growth: A strong global economy could benefit green bond issuers.
• Government policies: supportive policies can boost demand for green bonds.

Competitors:

• iShares Global Green Bond ETF (BGRN): Market share of 40.5%
• Xtrackers USD Green Bond UCITS ETF (XGBD): Market share of 11.1%

Expense Ratio:

GRNB has an expense ratio of 0.25%.

Investment Approach and Strategy:

• The ETF tracks the Bloomberg Barclays Global Green Bond Index.
• The portfolio primarily invests in investment-grade, fixed-income, green bonds.
• The fund holds a diversified portfolio across various sectors and geographies.

Key Points:

• Invests in global, investment-grade, green bonds.
• Seeks long-term capital appreciation and current income.
• Promotes environmental sustainability.
• Experienced and dedicated portfolio management team.
• Strong track record of performance.
• Good liquidity.

Risks:

• Interest rate risk: Rising interest rates could negatively impact bond prices.
• Market risk: The fund's performance is tied to the performance of the underlying green bond market.
• Credit risk: The fund invests in bonds issued by companies and governments, which carry varying degrees of credit risk.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation and current income.
• Investors who want to align their investments with environmental sustainability goals.
• Investors who believe in the growth potential of the green bond market.

Fundamental Rating Based on AI:

8.5/10

GRNB exhibits strong fundamentals based on an AI analysis. Its first-mover advantage, experienced management team, solid track record, and commitment to sustainability are notable strengths. The moderate expense ratio and potential for market and interest rate risks are factors to consider.

Resources and Disclaimers:

• VanEck Green Bond ETF website: https://www.vaneck.com/us/en/etf/equity/grnb/overview
• Bloomberg Terminal: Bloomberg Barclays Global Green Bond Index
• Morningstar: https://www.morningstar.com/etfs/arcx/grnb/quote

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.