GRNB ETF

For all the talk about ESG and sustainable investing falling out of favor with some market participants, there's ample evidence to the contrary. Some of that evidence comes courtesy of the global bond market.

Amid high interest rates and criticism of ESG investing, some market participants may have taken their eyes off green bonds. An understandable move, but one that may not be rewarded.

By William Sokol, Director of Product Management Green bonds are financing projects all over the world that have a positive environmental impact and provide a pathway to sustainable development.

This year has brought a record number of storms that have forced insurance companies to dole out multi-billion payouts. It's just one example, but it also highlights the need for elevated climate investments, which can act as buffers when unusual weather events and extreme heat arrive.

It seems as though reminders about the need to boost renewable energy investments arrive weekly. With that in mind, it's not surprising that green bonds are gaining more notoriety in the investment community.

In the global race to embrace renewable energy, western economies, are leading. While emerging markets – many of which are big polluters – are lagging.

The VanEck Green Bond ETF (GRNB) is roughly two months past its fifth birthday. Over that time, the green bonds market has evolved considerably.