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

Latest Alternative Investment News

Digital Assets: Epic Lays Off 830 Employees As Metaverse Underperforms
Earlier today, Tim Sweeney, the head of Epic Games, shared an email with the company’s employees, announcing some significant changes within the organization. In this message, Sweeney discussed the necessity…

Artificial Intelligence: Mysterious US-Based Books3 Dataset Used To Train AI Was A Massive Trove Of Pirated Books
Thousands of books penned by some of Australia’s most esteemed authors may have fallen victim to what Booker prize-winning novelist Richard Flanagan has described as “the biggest act of copyright…

FinTech: Ant’s Chongqing Consumer Finance Arm Raising $616M To Ramp Up Loans
Chongqing Consumer Finance, the consumer finance arm of Ant Group, a prominent player in China’s financial technology landscape, is currently in the process of raising a substantial sum of fresh…

Venture Capital: Mercury’s Fund V Mops Up $160M For US Startups “Between The Coasts”
Mercury Fund, the premier early-stage venture firm with a focus on non-coastal tech hubs, has successfully closed its largest fund to date, Mercury Fund V, with a total capital commitment…