Green ETF
- Be an active part of the shift towards a more sustainable and greener economy Investment strategies included in the Fund are compliant with ESG factors and UN global principles1
- VanEck offers different Green ETFs:
- Circular Economy UCITS ETF
- Hydrogen Economy UCITS ETF
- Sustainable Future of Food UCITS ETF
- Trend supported by European and global governments
- Relatively low costs
Risk of a Green ETF: You may lose money up to the total loss of your investment due to Emerging Markets Risk and Risk of investing in smaller companies as described in the Main Risk Factors, KID (REUS/HDRO/VEGI) and prospectus (REUS/HDRO/VEGI).
Why Invest in a Green ETF?
It has never been more important than today to take an active role in the ongoing green transition. Via a Green ETF by VanEck, contribute to the transformation of the high-carbon economy to a carbon-neutral one2.
Governments have lately significantly increased their efforts to drive this radical transformation that will address every aspect of the climate crisis, from pollution and loss of biodiversity to waste and toxic emissions. Initiatives on a global scale to align different countries’ interests and efforts have multiplied in the last years, as the recent Paris Climate Agreement and the European Green Deal3 show.
This has been reflected in the financial sector with investors looking to make a concrete impact, besides pursuing mere financial returns. However, ESG investment strategies have also proved to deliver consistent financial performance over time, thus combining environmental factors and investors’ returns. For example, the VanEck Sustainable World Equal Weight ETF has registered a performance exceeding 100% since 2013, as of 16/5/224.
VanEck Offers Different Green ETFs to Invest in a Sustainable Manner
VanEck’s Green ETF Suite Respects the Principles of the Sustainable Finance Disclosure Regulation
Goal of Achieving Transparency
The SFDR was introduced by the European Commission in 2021 and sets out mandatory ESG disclosure obligations for asset managers and other market participants. The goal is to improve the transparency of sustainability risks and the impacts of investment processes and strategies. SFDR articles 8 and 9 signal the highest possible sustainability levels for financial products.
- Article 8: Financial products that promote environmental or social characteristics.
- Article 9: Financial products with sustainable investment objectives.
The Funds have the Following SFDR Classifications
- VanEck Circular Economy ETF: Article 9 SFDR
- VanEck Hydrogen Economy ETF: Article 9 SFDR
- VanEck Sustainable Future of Food ETF: Article 9 SFDR
1 20 years ago UN has launched a set of principles to help contributing to a better world. More than 12.000 companies in more than 160 countries have adhered. These principles concern areas like environment, work, human rights and corruption.
In December 2019, the European Commission presented the European Green Deal, its flagship plan that aims to make Europe’s economy carbon neutral by 2050.
4 Source: VanEck. Past performance is not guarantee of future returns.
5 Source: Hydrogen (europa.eu).
VanEck Circular Economy UCITS ETF
ISIN: IE0001J5A2T9
- Invest in resource efficiency contributors
- Access the new economic model
- Invest in a cleaner planet
- SFDR Article 9
- 0.4% annual expense ratio
VanEck Hydrogen Economy UCITS ETF
ISIN: IE00BMDH1538
- Invest in the potential energy source of the future
- Key contributors to the hydrogen ecosystem
- Trend supported by governments around the world
- SFDR Article 9
- 0.55% annual expense ratio
VanEck Sustainable Future of Food UCITS ETF
ISIN: IE0005B8WVT6
- Invest early in the sector’s multi-decade transformation
- Pure-play exposure to companies involved in the food revolution
- SFDR Article 9
- 0.45% annual expense ratio
Main Risk Factors of a Green ETF
Liquidity risk exists when a particular financial instrument is difficult to purchase or sell. If the relevant market is illiquid, it may not be possible to initiate a transaction or liquidate a position at an advantageous or reasonable price, or at all.
A Green ETF may invest a relatively high percentage of its assets in a smaller number of issuers or may invest a larger proportion of its assets in a single issuer. As a result, the gains and losses on a single investment may have a greater impact on the Fund's Net Asset Value and may make the Fund more volatile than more diversified funds.
The securities of smaller companies may be more volatile and less liquid than the securities of large companies. Smaller companies, when compared with larger companies, may have a shorter history of operations, fewer financial resources, less competitive strength, may have a less diversified product line, may be more susceptible to market pressure and may have a smaller market for their securities.
The value of an investment in Green ETFs can be affected by exchange rate fluctuations. The price of the euro can rise against another currency in which an investment is denominated.
The value of the securities held by a Green ETF may fall suddenly and unpredictably due to general market and economic conditions in markets in which issuers or securities held by the fund are active.
For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on www.vaneck.com.
Why Invest in VanEck ETFs?
- Since we were founded in 1955 we have constantly been at the forefront of innovation, giving you access to new opportunities like gold funds, emerging market funds and ETFs.
- We are privately-held, allowing us to focus on our clients’ long-term interests.
- Our ETFs are transparent: they acquire the underlying securities (no synthetic replication). Securities are not lent out.*
