Real assets exposure may provide portfolio protection in an inflationary environment.
The new name better reflects the fund’s approach and impact on a portfolio.
VanEck today announced that effective June 23, 2021 the VanEck Vectors Real Asset Allocation ETF (RAAX) will be known as the VanEck Inflation Allocation ETF. The fund’s ticker symbol will remain unchanged.
"The risk of inflation is arguably higher now than it has been in the past 50 years,” said David Schassler, Portfolio Manager, VanEck. “Yet, most investors own few of the assets that may be best positioned to protect against inflation. That’s where RAAX comes in. It is a dynamic and risk-managed ETF that invests in inflation fighting assets. We are very pleased to be making this change to better align RAAX’s branding with the type of solution it provides.”
RAAX will continue to follow the same investment mandate in pursuit of long-term total return. The fund allocates primarily to exchange-traded products that provide exposure to real assets, including commodities, real estate, natural resources and infrastructure. During periods of sustained market declines, the fund also seeks to reduce downside risk through its rules-based approach to active management, which provides a determination as to when to allocate a portion of the fund’s assets to cash and cash equivalent holdings.
“A combination of active management and rules-based exposures makes RAAX a powerful tool for investors. We look forward to many more conversations with advisors and investors about the role that real assets can play in mitigating the pernicious effects of an inflationary environment,” added Mr. Schassler.
More information on RAAX can be found here.
About VanEck
VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets. This set the tone for the firm’s drive to identify asset classes and trends – including gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 – that subsequently shaped the investment management industry.
Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of May 31, 2021, VanEck managed approximately $80.9 billion in assets, including mutual funds, ETFs and institutional accounts. The firm’s capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and transparency are key to the experienced decision-making around market and index selection underlying VanEck’s passive strategies.
Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the firm’s mission.
Important Disclosures
An investment in the Fund may be subject to risks which include, among others, in fund of funds risk which may subject the Fund to investing in 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, interest rate, call and concentration risks, derivatives, cryptocurrency, cryptocurrency tax, all of which may adversely affect the Fund. The Fund may also be subject to affiliated fund, U.S. Treasury Bills, subsidiary investment, commodity regulatory (with respect to investments in the Subsidiary), tax (with respect to investments in the Subsidiary), risks of ETPs, liquidity, gap, cash transactions, high portfolio turnover, model and data, management, operational, authorized participant concentration, no guarantee of active trading market, trading issues, market, fund shares trading, premium/discount and liquidity of fund shares, and non-diversified risks. Foreign investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, and changes in currency exchange rates which may negatively impact the Fund's returns. Small- and medium-capitalization companies may be subject to elevated risks.
Investing involves risk, including possible loss of principal. Please call 800.826.2333 or visit vaneck.com for a free prospectus and summary prospectus. An investor should consider the investment objective, risks, and charges and expenses of the investment company carefully before investing. The prospectus and summary prospectus contain this and other information about the investment company. Please read the prospectus and summary prospectus carefully before investing.
Van Eck Securities Corporation, Distributor, 666 Third Avenue, New York, NY 10017
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