How much impact does an investor make when they invest in sustainable municipal bonds? We explore in this report.
All municipal bond issuances finance projects all over the country. However, only some of those bonds can be qualified as having a positive environmental, social and governance (ESG) impact, promoting a pathway towards sustainable development. But how much impact does an investor make when they invest in sustainable municipal bonds? In this impact report, we highlight the current and future positive impact potential of the top ten holdings and the portfolio summary of the VanEck HIP Sustainable Muni ETF (SMI).
SMI offer investors a way to build a sustainable core muni portfolio without significantly affecting risk and return, over the long term. SMI provides access to a diverse group of issuers at both the state and local levels, who are proactively investing in solutions that fund operations or projects that support or advance sustainable development, as well as promote positive social and environmental outcomes or mission accomplishment.
VanEck HIP Sustainable Muni ETF (SMI)
- Broad muni exposure with a focus on sustainability (ESG, UN Sustainable Development Goals (SDGs), climate threat resilience and a focus on opportunity zones)
- Core portfolio of investment-grade tax-exempts with intermediate duration
- Managed to maximize sustainability exposure while seeking to maintain benchmark characteristics
ETF Trends
APRIL 24, 2022
By Michael Cohick
Director, Product Marketing
Van Eck Associates Corporation