Exploring the Green Bonds ETFs scenery in 2022
Green bonds have witnessed some decent inflows this year, garnering over $140 million (net) from investors. These ESG investment products are fixed-income instruments used to fund projects that have a positive impact on the environment or climate benefits. This includes renewable energy, sustainable resource use, conservation, clean transportation and adaptation to climate change. By adding green bonds to a portfolio, an investor is funding projects that have a strong impact on net-zero ambition.
Most popular Green Bonds ETFs in America in 2022
Among the most popular green bonds funds, this year is the recently launched (January 2022) Wealthsimple North American Green Bond Index ETF (WSGB), which received $156 million since inception. The fund seeks to replicate the performance of the Solactive Green Bond USD CAD DM CAD hedged Index and invests primarily in investment-grade green, social, and sustainable bonds, with its foreign currency exposure, hedged back to the Canadian dollar. WSGB has a total expense ratio of 0.25% and trades on the NEO Exchange.
Other green bonds ETFs available in America include iShares USD Green Bond ETF (BGRN), Horizons S&P Green Bond Index ETF (HGGB), and VanEck Vectors Green Bond ETF (GRNB).
