Asset Allocation

The difficulty of predicting market cycles highlights the importance of preparation and flexibility to help protect assets in bear markets while also being ready to participate when markets again turn favorable.

The VanEck Approach

Market participation as well as effective risk mitigation can be implemented in investors’ portfolios through strategies that offer a robust, data-driven investment process for asset allocation decisions.

  • Quantitative Investment Solutions (QIS) serves as VanEck's quantitative analysis resource with a focus on asset allocation, performance modeling and reporting, and the identification and quantification of market dynamics.

  • Separate from the Group’s support of existing investment processes, QIS also conducts its own asset allocation and product development research. Their analytical approach utilizes objective data and can therefore be tailored for application across asset classes and sectors. To date, the Group has developed asset allocation approaches across asset classes, including real assets, municipal bonds, income generation, and commodities.

  • Team members have diverse industry and educational experience including advanced degrees in mathematics and quantitative modeling 

Why Now

  1. Uncertainty and risk in the markets are pervasive and impacting all asset classes. A comprehensive model, designed with specific market drivers for each asset class and with the ability to rely on various types of research—including macroeconomic, fundamental, technical, and sentiment data—provides a more thorough analysis.
  2. History has proven that when emotions are heightened and investor psychology is bruised, investment decisions suffer. Investors tend to make the wrong decision at precisely the wrong time, including staying invested too long and participating in a drawdown or not reallocating and missing the markets recovery. An objective approach that removes human behavioral factors can eliminate these types of errors.
Snapshot

Continuing our pursuit of forward-looking strategies, we identified a need for asset allocation strategies that adapt across market conditions.

Designed to participate meaningfully across markets, our Asset Allocation strategies share common attributes, including quantitative approaches, the flexibility to adjust exposures, and the use of liquid, cost-effective ETFs for broad, efficient exposures.