Green Infrastructure and Equipment
May 10, 2023
Read Time 2 MIN
Green infrastructure is the range of systems and technologies that enable and provide for a more sustainable way of living. In this blog series, we will outline seven specific areas: green transportation, green energy, green fuel, waste management, green infrastructure & equipment, pollution control, and green constructions. We will define these themes, how they contribute to green infrastructure and how they are instrumental to the space as a whole moving forward.
Green equipment refers to technologies, machinery, or devices designed to minimize environmental impact by optimizing energy efficiency, reducing waste, and lowering greenhouse gas emissions.
Solar energy companies exemplify the successful integration of green infrastructure and equipment. They harness the sun's power to provide a renewable and abundant energy source that can be incorporated into various aspects of green infrastructure. Solar panels can be installed on residential and commercial buildings, as well as on large-scale solar farms, to generate electricity for local communities. Solar power can also be used to fuel electric vehicle charging stations, contributing to a cleaner transportation system.
U.S. Consumption of Energy Types 2025-2050
Source: EIA.gov, March 2022.
As a leading solar energy company, Enphase plays a vital role in the green infrastructure movement in the United States. They specialize in microinverter technology designed to optimize solar energy output and improve the overall efficiency of solar systems. Microinverters convert direct current (DC) electricity produced by solar panels into alternating current (AC) electricity, which can be used to power homes and businesses.
Enphase's microinverters are more efficient and reliable than traditional string inverters as they allow each solar panel to operate independently, mitigating the impact of shading or debris on system performance. They also provide a comprehensive energy management platform that enables users to monitor and control their solar systems remotely, promoting energy efficiency and empowering consumers to make informed decisions about their energy consumption.
The green infrastructure movement in the United States is gaining longer-term momentum, with green equipment playing a pivotal role. Although there have been some near-term headwinds in the current environment, solar companies like Enphase are providing innovative technologies that reduce environmental impacts and offer economic benefits. Embracing green infrastructure and equipment, alongside the rapidly decreasing costs of solar energy, will help us work together toward a more sustainable future.
Investors can access key green infrastructure companies with the VanEck Green Infrastructure ETF (RNEW).1 The ETF provides diversified exposure to companies across the seven green infrastructure sub-themes.
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Important Disclosures
1 RNEW held 2.88% of net assets in Enphase Energy Inc. as of 5/8/2023.
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities/financial instruments mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, or tax advice. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results, are valid as of the date of this communication and subject to change without notice. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its employees.
Sustainable investing strategies aim to consider and in some instances integrate the analysis of environmental, social and governance (ESG) factors into the investment process and portfolio. Strategies across geographies and styles approach ESG analysis and incorporate the findings in a variety of ways. Incorporating ESG factors or Sustainable Investing considerations may inhibit the portfolio manager’s ability to participate in certain investment opportunities that otherwise would be consistent with its investment objective and other principal investment strategies.
ESG investing is qualitative and subjective by nature, and there is no guarantee that the factors utilized by VanEck or any judgment exercised by VanEck will reflect the opinions of any particular investor. Information regarding responsible practices is obtained through voluntary or third-party reporting, which may not be accurate or complete, and VanEck is dependent on such information to evaluate a company’s commitment to, or implementation of, responsible practices. Socially responsible norms differ by region. There is no assurance that the socially responsible investing strategy and techniques employed will be successful. An investment strategy may hold securities of issuers that are not aligned with ESG principles.
An investment in the VanEck Green Infrastructure ETF (RNEW) may be subject to risks which include, among others, green infrastructure companies, green energy companies, environmental services industry, green investing strategy, industrials sector, energy sector, consumer discretionary sector, utilities sector, information technology sector, equity securities, micro-capitalization securities, small- and medium-capitalization companies, market, operational, index tracking, authorized participant concentration, new fund, absence of prior active market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversified and concentration risks, all of which may adversely affect the Fund. Micro-, small- and medium-capitalization companies may be subject to elevated risks.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider a Fund's investment objective, risks, charges and expenses carefully before investing. To obtain a prospectus and summary prospectus for VanEck Funds and VanEck ETFs, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus for VanEck Funds and VanEck ETFs carefully before investing.
© 2023 Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation.
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Important Disclosures
1 RNEW held 2.88% of net assets in Enphase Energy Inc. as of 5/8/2023.
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities/financial instruments mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, or tax advice. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results, are valid as of the date of this communication and subject to change without notice. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its employees.
Sustainable investing strategies aim to consider and in some instances integrate the analysis of environmental, social and governance (ESG) factors into the investment process and portfolio. Strategies across geographies and styles approach ESG analysis and incorporate the findings in a variety of ways. Incorporating ESG factors or Sustainable Investing considerations may inhibit the portfolio manager’s ability to participate in certain investment opportunities that otherwise would be consistent with its investment objective and other principal investment strategies.
ESG investing is qualitative and subjective by nature, and there is no guarantee that the factors utilized by VanEck or any judgment exercised by VanEck will reflect the opinions of any particular investor. Information regarding responsible practices is obtained through voluntary or third-party reporting, which may not be accurate or complete, and VanEck is dependent on such information to evaluate a company’s commitment to, or implementation of, responsible practices. Socially responsible norms differ by region. There is no assurance that the socially responsible investing strategy and techniques employed will be successful. An investment strategy may hold securities of issuers that are not aligned with ESG principles.
An investment in the VanEck Green Infrastructure ETF (RNEW) may be subject to risks which include, among others, green infrastructure companies, green energy companies, environmental services industry, green investing strategy, industrials sector, energy sector, consumer discretionary sector, utilities sector, information technology sector, equity securities, micro-capitalization securities, small- and medium-capitalization companies, market, operational, index tracking, authorized participant concentration, new fund, absence of prior active market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversified and concentration risks, all of which may adversely affect the Fund. Micro-, small- and medium-capitalization companies may be subject to elevated risks.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider a Fund's investment objective, risks, charges and expenses carefully before investing. To obtain a prospectus and summary prospectus for VanEck Funds and VanEck ETFs, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus for VanEck Funds and VanEck ETFs carefully before investing.
© 2023 Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation.
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