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ESG Investing

Investing Today for a Brighter Future.

ESG investing is an approach to investing that drives positive environmental, social and governance (ESG) outcomes alongside financial results, aligning investment opportunities with investors’ values.


What is ESG Investing?

ESG investing incorporates environmental, social and governance factors and ethical considerations when making investment decisions.

Environmental
Social
Governance

Environmental criteria include energy use and impact on climate change, greenhouse gas emissions, waste, pollution, natural resource conservation and animal treatment.

Social criteria consider a company’s relationships with its stakeholders and includes working conditions, impact on local communities, health and safety and employee relations and diversity.

Governance includes the proper use of accurate and transparent accounting methods, fair voting, avoiding conflicts of interest and not engaging in illegal behavior.

Fair Value Estimate

Using Morningstar’s proprietary discounted cash flow model, the analyst develops a Fair Value Estimate, which represents the intrinsic value of that company.

Moat Investing

Identify companies with sustainable competitive advantages and attractive valuations.

VanEck, Responsible Investing and a Changing World

VanEck considers ESG factors integral to its investment philosophy and processes. We believe that an improving ESG record should translate into a company’s differentiated operational strength, financial performance and prospects and have an impact on valuation. In our view, companies exhibiting strong ESG practices will likelier be both more competitive and successful over the medium to long term.

As intentions, thinking and evidence in the ESG space continue to develop, we remain committed to identifying those factors that can provide enhanced investment opportunities for shareholders.

Our Commitment to Responsible Investment

VanEck is a signatory to the Principles for Responsible Investment (PRI), an investor initiative in partnership with UNEP Finance Initiative and UN Global Compact. Being a signatory means that we formally agree to incorporate ESG factors and analysis into our investment processes.

Governance—“active engagement” in particular—has always been a major consideration in our research processes and our efforts to fine-tune the ESG questions to ask in each industry are ongoing. We believe that an important part of our responsibility to clients goes beyond encouraging change that can enhance, protect and provide opportunities for shareholders to meet their investment objectives. It also entails seeking to mitigate associated risks, including those related to ESG.

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Active Strategies
Passive Strategies

Governance is especially important for our active emerging markets equity strategy. Companies can have higher concentrations of inside ownership and more flexible rules.

With our active gold mining strategy, we rigorously monitor companies’ adherence to industry best practices and have much more meaningful interactions with company boards on ESG topics compared to 10 years ago.

We were one of the first ETF issuers to offer environmentally sustainable exposures and we continue to research how those strategies can add value to client portfolios. VanEck offers ETFs, both equity and fixed income, either with ESG- and sustainability-related themes, or approaches that employ specific screening criteria and/or indices.

Structural growth companies with domestic demand, consumer led themes tend to concentrate in certain countries; therefore, the Strategy tends to be overweight in those places (i.e., China, India, Brazil, etc.), given its bottom-up investment approach.

Morningstar Wide Moat Focus Index vs S&P 500 Index

Source: FactSet. Data as of December 31, 2019. Information regarding portfolio composition, portfolio composition methodology, investment process or limits, or valuation methods of evaluating companies and markets are intended as guidelines which may be modified or changed by VanEck at any time in its sole discretion without notice.

Fair Value Estimate

Using Morningstar’s proprietary discounted cash flow model, the analyst develops a Fair Value Estimate, which represents the intrinsic value of that company.

Moat Investing

Identify companies with sustainable competitive advantages and attractive valuations.


Make an Impact with Your Portfolio

Our range of ETFs allows investors to integrate sustainable investing into their portfolio.

DISCLOSURES

An investment in the VanEck Vectors® Green Bond ETF (GRNB®) may be subject to risks which include, among others, green bonds, investing in European and emerging market issuers, foreign securities, foreign currency, credit, interest rate, high yield securities, supranational bond, government-related bond, restricted securities, securitized/asset-backed securities, financial, utilities, market, operational, call, sampling, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified and concentration risks, all of which may adversely affect the Fund.

An investment in the VanEck Vectors® Low Carbon Energy ETF (SMOG®) may be subject to risks which include, among others, investing in low carbon energy companies, investing in European issuers, foreign securities, foreign currency, depository receipts, industrials sector, information technology sector, small- and medium-capitalization companies, equity securities, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified and concentration risks, all of which may adversely affect the Fund. Foreign investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, and changes in currency exchange rates which may negatively impact the Fund's return. Small- and medium-capitalization companies may be subject to elevated risks.

Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called "creation units" and otherwise can be bought and sold only through exchange trading. Shares may trade at a premium or discount to their NAV in the secondary market. You will incur brokerage expenses when trading Fund shares in the secondary market. Past performance is no guarantee of future results. Returns for actual Fund investments may differ from what is shown because of differences in timing, the amount invested, and fees and expenses. The "Net Asset Value" (NAV) of a VanEck Vectors Exchange Traded Fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF's intraday trading value. VanEck Vectors ETF investors should not expect to buy or sell shares at NAV.

Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise. An investor should consider the investment objective, risks, charges and expenses of a fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.

Van Eck Securities Corporation, Distributor

666 Third Avenue

New York, NY 10017

800.826.2333

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