What Green ETFs are offered by VanEck?

VanEck offers different Green ETFs that focus on various sectors of the economy, including Circular Economy UCITS ETF, Hydrogen Economy UCITS ETF, and Sustainable Future of Food UCITS ETF.

What are the main risk factors of investing in Green ETFs?

Some of the risks may be, Emerging Markets Risk and the risk of investing in smaller companies. It is advised to read the Main Risk Factors, KID and prospectus before investing in Green ETFs.

Green ETF

Q: Why Invest in a Green ETFs?

By investing in a Green ETFs, you can take an active role in the ongoing green transition and contribute to the transformation of the high-carbon economy to a carbon-neutral one. Additionally, the trend towards sustainable investments is supported by governments globally.

We offers different Green ETFs:

VanEck Circular Economy UCITS ETF

Invest in resource efficiency contributors
Access the new economic model
Invest in a cleaner planet

ETF Details

Basis-Ticker: REUS
ISIN: IE0001J5A2T9
TER: 0.40%
AUM: $6.0 M (as of 30-11-2023)
SFDR Classification: Article 9

Lower risk

Higher risk

Typically lower reward

Typically higher reward

VanEck Hydrogen Economy UCITS ETF

Invest in the potential energy source of the future
Key contributors to the hydrogen ecosystem
Trend supported by governments around the world

ETF Details

Basis-Ticker: HDRO
ISIN: IE00BMDH1538
TER: 0.55%
AUM: $87.1 M (as of 30-11-2023)
SFDR Classification: Article 9

Lower risk

Higher risk

Typically lower reward

Typically higher reward

VanEck Sustainable Future of Food UCITS ETF

Invest early in the sector’s multi-decade transformation
Pure-play exposure to companies involved in the food revolution

ETF Details

Basis-Ticker: VEGI
ISIN: IE0005B8WVT6
TER: 0.45%
AUM: $6.2 M (as of 30-11-2023)
SFDR Classification: Article 9

Lower risk

Higher risk

Typically lower reward

Typically higher reward

Why Invest in a Green ETF?

Participate in the Green Transition
Trend Supported by Governments
Financial Performance

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 Circular Economy ETF

VanEck Hydrogen Economy ETF

VanEck Sustainable Future of Food ETF

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.

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.

² Source: What is carbon neutrality and how can it be achieved by 2050? | News | European Parliament (europa.eu).

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.

³ Source: What is carbon neutrality and how can it be achieved by 2050? | News | European Parliament (europa.eu).

⁴ Source: VanEck. Past performance is not guarantee of future returns.

⁵ Source: Hydrogen (europa.eu).

Key Documents and Links

Fact sheet

KID

Prospectus

Fund page

Main Risk Factors of a Green ETF

Liquidity Risk
Limited Diversification Risk
Risk of Investing in Smaller Companies
Exchange Rate Risk
Equity Market Risk

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.

Discover more ETFs

More ETFs

Please contact us for more information:

Phone: +41 (0)44 562 40 65
Email: EMEAinfo@vaneck.com