SMI Profile
The VanEck HIP Sustainable Muni ETF is an actively managed exchange-traded fund (ETF) that focuses on municipal debt securities with an emphasis on sustainability. The fund's strategy involves investing at least 80% of its total assets in municipal securities whose income is exempt from U.S. federal income tax. This approach is designed to provide investors with tax-advantaged income while aligning their investments with sustainable development goals.
The ETF targets investment-grade municipal bonds issued by entities involved in projects that contribute to sustainable development. Specifically, the fund invests in securities linked to initiatives that support the United Nations Sustainable Development Goals (SDGs), particularly goals 9 (Industry, Innovation, and Infrastructure), 11 (Sustainable Cities and Communities), and 12 (Responsible Consumption and Production). These goals guide the fund's investment decisions, ensuring that the assets support environmentally and socially beneficial projects.
By focusing on bonds issued by entities with a commitment to sustainability, the VanEck HIP Sustainable Muni ETF aims to provide investors with a dual benefit: favorable tax treatment and alignment with impactful, long-term sustainable development initiatives. The fund is actively managed, allowing the investment team to make dynamic decisions based on market conditions and sustainability criteria. This active management approach ensures that the portfolio remains aligned with both the financial and ethical objectives of the fund.
As a non-diversified fund, the VanEck HIP Sustainable Muni ETF does not seek to spread investments across a broad range of asset classes. Instead, it concentrates on a specific segment of the municipal bond market, focusing on bonds that meet its sustainability criteria. This concentrated investment approach allows the fund to pursue its targeted investment strategy effectively, providing investors with a specialized tool for socially responsible investing while benefiting from municipal bond income.
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