An ETF launched last week by VanEck is betting on more public investment to replace aging infrastructure and support clean energy.
The company’s Green Infrastructure ETF, which commenced operations October 18, tracks the Indxx US Green Infrastructure-MCAP Weighted Index. That index includes companies involved in renewable energy or building sustainable infrastructure.
“The state of the US’s infrastructure is in need of renewal and an upgrade in order to support a growing population and the goals of environmental sustainability and climate resiliency. In fact, the American Society of Civil Engineers gave the US a C- grade for its overall infrastructure in 2021, with sub-sectors including energy, hazardous waste and transit all earning D+ grades or worse,” VanEck director of product management Michael Cohick said in an announcement by the firm. “Fortunately, government initiatives and private sector innovations are providing potential opportunities for investors to participate in this long-term trend.”
The ETF’s top holdings are Cheniere Energy, Enphase Energy, First Solar, Quanta Services and Waste Management. Total operating expenses are 45 basis points.
VanEck’s head of equity ETFs Peter Liao is the new fund’s portfolio manager.