The dynamic weighting methodology may be seen as an “optimized allocation process provides exposure to segments with positive expected returns while managing overall portfolio risk,” according to VanEck.
The underlying holdings 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.
Current top holdings include PowerShares DB Optimum Yield Diversified Commodity Strategy Portfolio (NasdaqGM: PDBC) 30.2%, VanEck Vectors Agribusiness ETF (NYSEArca: MOO) 19.9% and SPDR Gold Shares (NYSEArca: GLD) 9.5%.
Financial advisors who are interested in learning more about real asset investing strategies can register for the Tuesday, May 1 webcast here.