The current environment, characterized by economic growth and heightened inflation expectations, provides an ideal backdrop for investors to consider the benefits of real assets.
However, reluctance exists due to the ambiguity of the real assets label and also, concerns related to market cyclicality and volatility. Investors are also often limited by existing strategies in the marketplace that focus on a specialized area within real assets and lack flexibility to adapt to changing market conditions.
On the upcoming webcast Tuesday, May 1, Real Asset Investing for the Real World, Roland Morris, Portfolio Manager and Strategist of Commodities for VanEck, and David Schassler, Portfolio Manager of Managed Allocation Strategy for VanEck, will examine the current performance drivers of real assets and introduce a new approach which provides exposure to real asset segments with positive expected returns while managing overall portfolio risk.
How to Identify Real Asset Exposures
Specifically, the recently launched VanEck Vectors Real Asset Allocation ETF (NYSE Arca: RAAX) looks to real asset exposures including commodities and companies involved in natural resources, real estate, and infrastructure.
Real assets can potentially help investors combat rising inflation, enhance portfolio diversification, and participate in global growth. The new ETF is a type of fund-of-funds that 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.