VanEck launched a new ETF on Tuesday that aims to provide exposure to real assets while seeking to minimize the impact of drawdowns.
The 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 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.
Ed Lopez, Head of ETF Product at VanEck, said RAAX is the type of solution-oriented ETF our investors expect from VanEck.
“Its innovative allocation and risk-management methodology is indicative of VanEck’s commitment to offering forward-thinking investment solutions,” Lopez said.