Liquid Alternatives: Sustainable Investing Meets Munis in New Van Eck ETF

Van Eck will soon launch the VanEck Vectors Sustainable Muni ETF.

Van Eck will meet investors’ growing preference for sustainable investing by offering it inside of a fixed income vehicle.

The fund manager filed with the SEC for its plans to launch the VanEck Vectors Sustainable Muni ETF, according to InvestmentNews.

Van Eck ETF Investment norms

The ETF will invest a minimum of 80% of its total assets in investments the income from which is exempt from U.S. federal income tax (other than AMT).

Moreover, the actively managed ETF  “seeks to achieve its investment objective by investing, under normal circumstances, in investment-grade municipal debt securities that fund issuers with operations or projects helping to promote progress towards sustainable development, in alignment with the goals and metrics defined by the United Nations Sustainable Development Goals (‘SDGs’) 9, 11 and 12,” the filing says.

Rules-based investing

The specific goals of SDGs 9, 11 and 12 are as follows.

  • SDG 9 is to “Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation,”
  • # 11 is to “Make cities and human settlements inclusive, safe, resilient and sustainable” and
  • SDG 12 is to “Ensure sustainable consumption and production patterns.”

Furthermore, the Van Eck fund “primarily uses a rules-based investment approach utilizing proprietary HIP (Human Impact + Profit) Rating data for the application of impact criteria to security selection and portfolio management. HIP Ratings are produced and licensed from HIP.”

Van Eck municipal portfolio manager Jim Colby will manage the fund.

Related Story:   ESG: Cerulli Report Says 2020 To Be “Pivotal” For Retail ESG Investing

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