Michael Cohick, Director, Product Marketing at VanEck ETFs, Paul Herman, CEO & Founder of HIP Investor and Tom Butcher, Director of ESG at VanEck discuss the timely benefits of sustainable munis, and the opportunity to invest with impact.
Municipal bonds, which offer tax-exempt income and are currently benefiting from historically low default rates, can also be a way for investors to make community-based impact.
The VanEck HIP Sustainable Muni ETF (SMI), launched in September 2021, aims to provide investors with investment-grade exposure to sustainable munis centered around positive social, environmental and economic outcomes or mission accomplishment. The actively managed ETF leverages HIP’s independent research as well as VanEck’s experience in the municipal bond ETF space. HIP Investor’s ratings span 120,000 bonds and measure “human impact and profit” potential.
For example SMI’s portfolio may include munis funding projects like affordable housing, hospitals, sustainable development, and green spaces. The fund’s investment strategy considers a number of factors including: ESG ratings, climate threat resilience, proximity to opportunity zones, and the overall sustainability as well as the longterm impact of the project.
“For 15 years, HIP’s analytical rigor has evaluated real-world impacts for investors, advisors and fund managers, enabling more capital to flow to innovators bringing sustainable solutions for people, planet and trust,” said R. Paul Herman, CEO and founder of HIP Investor. “This new ETF enables portfolios to focus on meaningful climate action, increasingly sustainable communities and stronger resilience overall.”
SMI joins the ranks of VanEck’s growing lineup of sustainable funds, which includes Green Bond ETF (GRNB), Low Carbon Energy ETF ( SMOG), and Morningstar ESG MOAT ETF ( MOTE).
VanEck manages approximately $81.3 billion in assets, with a global headquarters in New York and robust lineups of local funds in Europe and Australia. Lead portfolio managers all have direct experience in the sectors and regions in which they invest. VanEck takes on institutional and wealth management clients, and their active funds and smart beta ETFs have won numerous performance awards.
To learn more, register & watch VanEck’s webcast: Sustainable Munis for Stronger Communities. Topics will include:
- Tax-exempt income potential with impact
- HIP ratings and how they screen ESG factors
- Sustainable cities and the role muni bonds play