VanEck Vectors ETFs
01/14/15: With growing concerns about the world economy, copper prices endured their biggest one-day decline in over three years. Senior analyst Charl Malan believes that copper's decline may force companies to cut production "and that new projects, that are supposed to deliver a 5% supply growth in 2016, will not happen."View article »
11/03/14: "The strength of our investment team," explains Co-Portfolio Manager Shawn Reynolds, "is derived from our diverse backgrounds, which include not only strong technical and financial capabilities, but also our on-the-ground experience. We bring a unique investment approach based on this expertise which is critical to analyzing trends and prices in the industry."View article »
09/19/14: The Global Hard Assets Fund has earned a Zacks #1 Rank (Strong Buy) as Zacks "expect the fund to outperform its peers in the future."View article »
04/09/14: According to Charl Malan, “[Copper] companies are struggling to get projects on line…A year ago, the surplus for 2014 was much bigger than what we think it is today and in the numbers I am seeing today people are not discounting two very big mines that aren’t operating properly.”View article »
Subscribe to email updates
Learn more on how to purchase shares of VanEck Funds
In a dramatic reversal from the fourth quarter of 2015, Class A
shares provided a total return for the first quarter of 11.18% (excluding
sales charge). The Fund outperformed its commodity equities-based
benchmark index, the Standard & Poor’s® (S&P) North American
Natural Resources Sector Index (SPGINRTR), which returned 6.26%
over the same period.
The first quarter of 2016 was marked by evidence across the
commodities spectrum that supply really is reacting both to low prices
and low investment, and that a degree of stability may be creeping
The quarter started with continuing concerns about growth in China and the U.S. In January and through early February, the market was more focused on financial than on economic concerns: about the Renminbi, further currency devaluations, and capital
outflows from China. Although these appeared to have abated by the end of the quarter (amongst other factors, the U.S. dollar had rolled over, relieving pressure not only on China’s, but also on other currencies), economic concerns still remained, albeit drawing less of a focus. Not
least, data started to come through during the quarter indicating not only that Chinese copper purchases for 2015 were at a record level, but so too were imports of crude oil.
Negative interest rates and less confidence in the abilities of central banks led to gold becoming increasingly attractive during the quarter, particularly as a store of value, not least because it became cheaper to hold on a relative basis. As the price of the metal rose, gold
miners benefited. With many of them now having “put their houses in order," they have been able to leverage a higher gold price and are now in a better spot than they have been at any time in the last four to five years.
Read full 1Q Commentary »
Please click on the map for more detail.
Portfolio Manager and Strategist
Roland Morris, Portfolio Manager and Strategist, gives his commodity outlook for the second half of 2016. Continued supply response and the Fed maintaining an accommodative policy will continue to provide support for commodities.
View now »
Portfolio Manager, Natural Resources Equity
Shawn Reynolds, Portfolio Manager, Natural Resources Equity, discusses the short-term and long-term implications of cuts to oil supply in 2016 and beyond.
“We’re still working on the assessment and appraisal of where all these resources are. As the years go on, we've got hundreds and thousands of wells to drill into these shales and unconventional resources that will be more manufacturing-oriented.”
“Hidden behind the scenes is a very serious supply response to low prices occurring across several industries and sectors, especially the energy and industrial mining sectors.”
"The majors are still stuck in the old model, trying to drill in deep water in megaprojects, which we are now finding out don't work and didn't work with oil at $100 a barrel. While the independent E&P companies are now showing that they can be successful, drill great wells, and grow with oil at $30 a barrel."
"Refiners differ quite a bit relative to many other sub-industries or other companies in the energy industry in that they are not entirely dependent on oil prices for their gains or losses."
Jan van Eck
We now firmly believe that oil is in a bottoming process and this is a good time for investors to either market-weight oil or tactically add to targeted oil exposure.
“Hard assets” refers to
the natural resources or commodities that are mined, exploited, harvested or
otherwise procured globally.
Hard assets have traditionally been
grouped into five broad categories:
Oil, natural gas, electricity, coal, and new/renewable alternative energy
2) Precious Metals Gold, silver,
palladium and platinum
3) Base/Industrial Metals Copper, aluminum, steel, iron and nickel
Agriculture Corn, wheat, sugar and water
Forest Products Timber, pulp and paper
Unless otherwise stated, portfolio facts and statistics are shown for Class A shares; other classes may have different characteristics.
†NAV: Unless you are eligible for a waiver, the public offering price you pay when you buy Class A shares of the Fund is the Net Asset Value (NAV) of the shares plus an initial sales charge. The initial sales charge varies depending upon the size of your purchase. No sales charge is imposed where Class A or Class C shares are issued to you pursuant to the automatic investment of income dividends or capital gains distributions. It is the responsibility of the financial intermediary to ensure that the investor obtains the proper “breakpoint” discount. Class C, Class I and Class Y do not have an initial sales charge; however, Class C does charge a contingent deferred redemption charge. See the
prospectus for more information.
1Expenses are calculated for the 12-month period ending 05/01/16: Class A: Gross 1.36% and Net 1.36%; Class C: Gross 2.16% and Net 2.16%; Class I: Gross 1.04% and Net 1.00%; and Class Y: Gross 1.15% and Net 1.13%. Expenses are capped contractually through 05/01/17 at 1.38% for Class A; 2.20% for Class C; 1.00% for Class I; and 1.13% for Class Y. Caps exclude certain expenses, such as interest.
2The S&P North American Natural Resources Sector (SPGINRTR) Index (the "Index") provides investors with a benchmark that represents U.S. traded securities that are classified under the GICS® energy and materials sector excluding the chemicals industry; and steel sub-industry. The MSCI ACWI Commodity Producers Index captures the global opportunity set of commodity producers in the energy, metal and agricultural sectors. All indices are unmanaged and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made.
The views and opinions expressed are those of VanEck. Fund manager commentaries are general in nature and should not be construed as investment advice. Opinions are subject to change with market conditions. Any discussion of specific securities mentioned in the commentaries is neither an offer to sell nor a solicitation to buy these securities. Fund holdings will vary.
You can lose money by investing in the Fund. Any investment in the Fund should be part of an overall investment program, not a complete program. The Fund is subject to risks associated with concentrating its investments in hard assets and the hard assets sector, including real estate, precious metals and natural resources, and can be significantly affected by events relating to these industries, including international political and economic developments, inflation, and other factors. The Fund’s portfolio securities may experience substantial price fluctuations as a result of these factors, and may move independently of the trends of industrialized companies. The Fund’s investments in foreign securities involve risks related to adverse political and economic developments unique to a country or a region, currency fluctuations or controls, and the possibility of arbitrary action by foreign governments, including the takeover of property without adequate compensation or imposition of prohibitive taxation. The Fund is subject to risks associated with investments in debt securities, derivatives, commodity-linked instruments, illiquid securities, asset-backed securities and CMOs. The Fund is also subject to inflation risk, short-sales risk, market risk, non-diversification risk, leverage risk, credit risk and counterparty risk. Please see the
prospectus for information on these and other risk considerations.
Investing involves risk, including possible loss of principal. An investor should consider investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus and summary prospectus contain this and other information. Please read them carefully before investing.
Van Eck Securities Corporation, Distributor
666 Third Avenue
New York, NY 10017
© VanEck. All rights reserved.