|Bid||44.64 x 900|
|Ask||44.66 x 1100|
|Day's Range||44.59 - 44.75|
|52 Week Range||37.95 - 44.75|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.77|
|Expense Ratio (net)||0.47%|
President Donald Trump delivered his highly anticipated State of the Union address Tuesday night. U.S. investors were hoping for a positive update on trade negotiations with China. The ongoing trade war rattled the market in the fourth quarter, and several major U.S. companies have blamed China for earnings and guidance misses.
The VanEck Vectors® Real Asset Allocation ETF (RAAX™) uses a data-driven, rules-based process that leverages over 50 indicators (technical, macroeconomic and fundamental, commodity price, and sentiment) to allocate across 12 individual real asset segments in five broad real asset sectors. These objective indicators identify the segments with positive expected returns. Then, using correlation and volatility, an optimization process determines the weight to these segments with the goal of creating a portfolio with maximum diversification while reducing risk. ...
Money managers are betting on the ongoing need to upgrade and expand the world's infrastructure to accommodate the growing global economy and rising population. Exchange traded fund investors can also tap into this industry through infrastructure sector-specific strategies. Private-equity firms have raised a record $68.2 billion for infrastructure investing for the first three quarters of the year, up 18% over the same period last year and surpassing the $66.2 billion for all of 2016, the Wall Street Journal reports.
MORRIS: In essence one of the things we have accomplished with these three products is to reduce the volatility inherent in all markets, and in particular very volatile markets like the real asset sectors. It’s another way, in a sense, for investors, by keeping those profits through the cycle, they can actually compound their money in a slightly different way as opposed to a buy-and-hold strategy for long periods of time. In some ways this is kind of a marriage of our fundamental investing, long-only investing heritage, particularly in emerging markets and global markets and natural resources.
ONEOK (OKE) reported adjusted EBITDA growth of 30% YoY (year-over-year) in the second quarter. The company’s EBITDA growth in the last four quarters averaged 20%. Similarly, Targa Resources’ adjusted EBITDA grew 26% YoY in the second quarter. The company’s EBITDA growth averaged 15% in the last four quarters.
The actively managed VanEck Vectors® Real Asset Allocation ETF (RAAX) offers investors the ability to access the potential benefits of real assets. By offering potential exposure across commodities, natural resource equities, REITs, MLPs, and infrastructure, with the ability to allocate up to 100% to cash and cash equivalents during market stress, RAAX helps address the impact of volatility long associated with real asset investing through a process that responds to changing market environments. ...
As the headwinds are likely to continue to dissipate, the potential benefits of real asset investing are coming into clearer focus. Notably, an allocation to real assets can be used to help investors enhance portfolio diversification, gain exposure to global growth, and hedge against the impact of inflation. As the current environment progresses, it is a good time to consider the impact of inflation and an allocation to real assets.
Inflation is something that has not been seen in well over a decade, but the ingredients are there: a strong U.S. economy, unemployment at historic lows, and the recent stimuli of tax reform, deregulation, and government spending, which may not even have fully taken hold yet. Plus, recent indications from the Fed continue to indicate a potentially more aggressive approach to tightening. In developed countries, inflation had languished below the central bank’s target level for many years.
To many market observers, the first quarter of 2016 marked the low point for sectors commonly associated with real assets. Stagnant global growth, oversupplied commodities markets, a strong U.S. dollar, and natural resource companies with bloated balance sheets overridden by enormous debt all combined to create tremendous headwinds that obscured the potential benefits of adding real assets to an investment portfolio. The recent environment, characterized by economic growth and heightened inflation expectations, provides an ideal backdrop for investors to consider real assets and their potential benefits.
The VanEck Vectors Real Asset Allocation ETF (RAAX) uses a data-driven, rules-based process that leverages over 50 indicators (technical, macroeconomic and fundamental, commodity price, and sentiment) to allocate across 12 individual real asset segments in five broad real asset sectors. These objective indicators identify the segments with positive expected returns. Then, using correlation and volatility, an optimization process determines the weight to these segments with the goal of creating a portfolio with maximum diversification while reducing risk. ...
KEMMERER: Now that we understand why the macro environment is supportive, why don’t you tell us a little bit about the investment process? What we’re doing is looking at what drives these individual real asset equities.
GILLIAN KEMMERER: Welcome, I’m Gillian Kemmerer. Building on a legacy in the real asset space, VanEck is soon to debut a new fund, ticker RAAX. It is a real assets ETF that can invest in commodities, natural resource equities, REITs, MLPs, and infrastructure. It uses ETFs to gain exposure and can also be 100% in cash. Here to tell us more about the launch, VanEck’s own David Schassler and Roland Morris. Thanks for joining us. So, Dave, why don’t we start with an elevator pitch for the fund?