Global X’s Green Building ETF combines ESG focus with real estate

Global X has expanded its thematic ETF lineup, with a new fund combining an environmental focus with the real estate sector. The company has announced the Global X Green Building ETF (GRNR), an investment vehicle targeting businesses that are positioned to benefit from the increasing demand for buildings that either positively impact the natural environment or reduce/eliminate negative impacts.

“The green building sector represents a multi trillion-dollar opportunity designed to meet the rapidly increasing demand for buildings while reducing greenhouse gas emissions and boosting climate resiliency,” said Pedro Palandrani, Director of Research at Global X.

He added: “We expect green buildings to continue to gain market share due to increasing demand for sustainable solutions and new regulations, and I’m thrilled that Global X is leveraging its thematic expertise to seek to provide investors with access to companies involved in several business activities related to green building.”

According to Global X, estimates suggest that the global green building materials sector could more than double between 2020 and 2028 from $256B to $653B.

Global X’s latest fund comes to market with a 0.45% expense ratio and trades on the Nasdaq. GRNR has 73 holdings, including heavy exposure to firms like Boston Properties (BXP), Carrier Global Corporation (CARR), and Vornado Realty Trust (VNO).

In other ETF news, semiconductor funds have seen record inflows despite a down year.