VanEck Shutters ESG ETFs RNEW, SMI Amid Low Demand For Green Investment Funds

If you're holding the VanEck Green Infrastructure ETF (NASDAQ:RNEW) or VanEck HIP Sustainable Muni ETF (BATS:SMI) funds, it's time to check your portfolio. VanEck is pulling the plug on both products later this month.

The deadline to trade these ETFs on the stock market is June 18. From there on, they’ll be delisted, and the remaining shareholders will be paid in cash around June 25, according to the net asset value of their investments.

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Why Is VanEck Doing This?

In short: low performance and low demand. VanEck takes a regular look at its fund lineup to determine what’s hot and what’s not. These two sustainable-themed ETFs lacked sufficient assets or investor interest to remain in play.

The firm wasn’t specific, but it’s a common scenario— if a fund isn’t growing or gaining traction, even such large players as VanEck won’t retain it indefinitely.

What This Means For You

If you hold RNEW or SMI shares, you can trade them on your online brokerage site up to and including June 18 (your brokerage fees may apply). If you do not sell before then, you will be automatically paid out in cash on approximately June 25, the value of the fund at the time of liquidation.

You could also see a final income or capital gains distribution when the fund is closed.

For tax purposes, the liquidation will be treated as a capital gain or loss based on your cost basis. VanEck will distribute year-end tax information.

This action follows a broader trend in the ETF space. Asset managers are consolidating their product offerings, particularly when niche or thematic ETFs don’t attract sufficient investor capital. ESG investing isn’t disappearing, but it’s clear that not all “green” funds are meant to be permanent.

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