ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
    • Crypto ETF Hub
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Beyond Basic Beta Channel
  2. Expect Another Huge Year for Green Bonds
Beyond Basic Beta Channel
Share

Expect Another Huge Year for Green Bonds

Tom LydonJan 10, 2022
2022-01-10

Green bonds and the VanEck Vectors Green Bond ETF (GRNB B) are relatively new on the fixed income scene, but that didn’t prevent the asset class from posting a banner 2021.

VanEck Green Bond ETF

GRNB, which follows the S&P Green Bond U.S. Dollar Select Index, turns five years old in March, and the exchange traded fund has been around for the bulk of the boom in green bond issuance. Last year, $505 billion worth of green bonds were issued.

Not only is that an annual record, but it’s nearly double the $253 billion in debt sold by fossil fuels producers, marking the first time that green bond issuance topped that of fossil fuels producers.

Last year, “was still the first since the Paris climate agreement in late 2015 that more money went into green bonds than debt issued by oil, gas and coal companies,” reports Tim Quinson for Bloomberg.

GRNB is currently home to 307 bonds, but upon the fund’s next rebalance, it’s possible that the figure could grow because experts are forecasting another flood of green bond issuance this year. In fact, 2022 could bring another record of green bond sales as more companies and governments look to raise capital for environmentally friendly projects.

“Analysts at Morgan Stanley estimate that green bond issuance will approach $1 trillion in 2022, led by sales from the European Union,” according to Bloomberg.

Europe’s leadership on the green bond front, which is long-standing, is relevant to GRNB investors because the VanEck fund allocates just 38.45% of its weight to domestic issues, confirming that green bonds are a global asset class. Twenty countries are represented in GRNB, and it’s a mix of developed and emerging markets, including seven European nations.

It’s not just Europe. India is targeting record green bond issuance this year, and the number of bonds with the green label jumped 73% in the U.S. in 2021.

One of the results of the environmental, social, and governance (ESG) investing movement is that as asset allocators and investors grow more comfortable with this style on the equities front, they’re clamoring for more sustainable solutions in the fixed income space. With GRNB, investors don’t have to wait because that evolution and innovation are already here.

Seventy-six percent of GRNB’s holdings carry investment-grade ratings, and the average maturity of issues in the portfolio is 7.92 years, according to issuer data.

For more news, information, and strategy, visit the Beyond Basic Beta Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X