NEW YORK--(BUSINESS WIRE)--VanEck today announced the launch of the VanEck Vectors® Real Asset Allocation ETF (NYSE Arca: RAAX), a fund that seeks long-term total return from exposure to a range of real assets, including commodities and companies involved in natural resources, real estate, and infrastructure, while mitigating downside risk.
“VanEck has been a long-time proponent of the benefits of real asset investments, both from a performance and portfolio diversification perspective. We also understand that the volatility of real asset investing is a challenge for many investors,” said David Schassler, Portfolio Manager for RAAX. “These are predominantly cyclical sectors that experience frequent periods of high volatility. RAAX was specifically designed to address this. It is a real asset investment solution with built in risk management.”
RAAX is designed to provide exposure to real assets while seeking to minimize the impact of drawdowns. Real assets can potentially help investors combat rising inflation, enhance portfolio diversification, and participate in global growth. The new fund uses a rules-based model to allocate among approximately 12 exchange-traded products (ETPs) and has the ability to allocate up to 100% to cash and cash equivalents in the event of market stress. The ETPs provide exposure to agribusiness, coal, infrastructure, real estate, steel, oil services, unconventional oil & gas, and gold mining companies as well as diversified commodity futures exposure and physical gold.
“RAAX is the type of solution-oriented ETF our investors expect from us” said Ed Lopez, Head of ETF Product at VanEck. “Its innovative allocation and risk-management methodology is indicative of VanEck’s commitment to offering forward-thinking investment solutions.”
VanEck also notes that real asset investments are not without their risks, which can include susceptibility to adverse economic events, natural disasters, geopolitical risks, and supply and demand disruptions. RAAX performance is dependent on the performance of underlying funds and is subject to the risks of the underlying funds’ investments.
The Fund is the latest addition to the VanEck Vectors suite of Guided Allocation funds, which includes an ETF, VanEck Vectors® NDR CMG Long/Flat Allocation ETF (NYSE Arca: LFEQ), and a mutual fund, VanEck® NDR Managed Allocation Fund (NDRMX).
VanEck’s mission is to offer investors forward-looking, intelligently designed investment strategies that take advantage of targeted market opportunities. Founded in 1955, the firm is a pioneer in global investing with a history of placing clients’ interests first in all market environments. Today, VanEck continues this tradition by offering innovative active and passive investment portfolios in hard assets, emerging markets equity and debt, precious metals, fixed income, and other alternative asset classes. VanEck Vectors exchange-traded products are one of the largest ETP families in the world, managing more than 70 funds that span a range of sectors, asset classes, and geographies. As of March 31, 2018, VanEck managed approximately $46.2 billion in assets, including mutual funds, ETFs, and institutional accounts.
An investment in the VanEck Vectors Real Asset Allocation ETF (RAAX) may be subject to risks which include, among others, fund of funds risk which may subject the Fund to investing to commodities, gold, natural resources companies, MLPs, real estate sector, infrastructure, equities securities, small- and medium-capitalization companies, foreign securities, emerging market issuers, foreign currency, credit, high yield securities, interest rate, call, and concentration risks, all of which may adversely affect the fund. RAAX may also be subject to affiliated fund, U.S. Treasury Bills, subsidiary investment, commodity regulatory, tax, liquidity, gap, cash transactions, high portfolio turnover, model and data, management, operational, authorized participant concentration, absence of prior active market, trading issues, market, fund shares trading, premium/discount, and liquidity of fund shares, and non-diversified risks. The Fund's assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors.
Diversification does not assure a profit nor protect against loss.
Fund shares are not individually redeemable and will be issued and redeemed at their net asset value (NAV) only through certain authorized broker-dealers in large, specified blocks of shares called "creation units" and otherwise can be bought and sold only through exchange trading. Shares may trade at a premium or discount to their NAV in the secondary market. You will incur brokerage expenses when trading Fund shares in the secondary market. Past performance is no guarantee of future results. Returns for actual Fund investments may differ from what is shown because of differences in timing, the amount invested, and fees and expenses.
Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
|Van Eck Securities Corporation, Distributor|
|666 Third Avenue|
|New York, NY 10017|