PIT ETF: Question & Answer

Commodities are the foundation of the global economy — from the energy that powers industries to the metals, grains, and livestock that sustain growth and everyday life. Their prices are influenced by a wide range of factors, including supply and demand, geopolitical developments, weather, and broader economic trends, making the asset class both dynamic and diverse. Because commodities often behave differently from traditional assets like stocks and bonds, they can enhance portfolio diversification and provide a potential hedge against inflation. Against this backdrop, the VanEck Commodity Strategy ETF (PIT) offers investors an efficient, actively managed approach to gaining broad exposure to global commodities through a single investment.

• Why commodities?
• How does the VanEck Commodity Strategy ETF (PIT) invest?
• What is roll yield methodology and how does it impact the Fund?
• What makes the PIT ETF different from other commodity ETFs?
• How can PIT fit into a portfolio?
• What are the key risks of investing in PIT?
• How is PIT structured and taxed?
• How can investors buy the VanEck Commodity Strategy ETF (PIT)?

Why commodities?

Commodities have historically served as both a portfolio diversifier and an inflation hedge. Because they often move differently from stocks and bonds, they can help smooth out portfolio returns over time and tend to perform well during periods of rising inflation.

How does the VanEck Commodity Strategy ETF (PIT) invest?

The PIT ETF invests primarily in commodity futures contracts and other instruments that track the prices of raw materials such as oil, metals, and agricultural products. The Fund covers five key sectors — energy, precious metals, industrial metals, agriculture, and livestock — providing diversified exposure across global commodities markets. The investment team uses a systematic, research-driven process to identify which commodities and contract maturities offer the most attractive risk-adjusted opportunities. The Fund also holds U.S. Treasury bills and cash equivalents as collateral. Because PIT is actively managed, sector weights and holdings can shift over time as market conditions evolve. It does not hold physical commodities directly.

What is roll yield methodology and how does it impact the Fund?

Roll yield refers to the gain or loss that occurs when rolling futures contracts forward as they near expiration. A negative roll yield can occur when longer-dated contracts are more expensive than near-term contracts (a condition known as contango), while a positive roll yield arises when the opposite is true (backwardation). PIT's portfolio construction process seeks to invest at points on the futures curve that maximize potential roll yield opportunities.

What makes the PIT ETF different from other commodity ETFs?

Unlike many commodity funds that passively track an index, PIT is actively managed. This means the portfolio managers have the flexibility to adjust exposures based on changing market conditions, price momentum, and roll-yield dynamics. Guided by VanEck’s long-standing expertise in real assets and quantitative investing, the team applies a disciplined, data-driven approach to pursue attractive risk-adjusted returns. For tax efficiency and broader access to global commodity markets, the Fund may invest up to 25% of its assets in a wholly owned Cayman Islands subsidiary that holds certain commodity positions.

How can PIT fit into a portfolio?

PIT can play several roles — as a diversifier, a tactical inflation hedge, or a strategic long-term allocation to real assets. Because commodity returns have historically had low correlation with equities and bonds, even a modest allocation can help improve the overall balance and resilience of a diversified portfolio.

What are the key risks of investing in PIT?

Commodities can be volatile and are influenced by supply and demand, geopolitical events, and economic cycles. Futures-based investments may be affected by factors such as contango or backwardation (changes in futures pricing over time). Additional risks include liquidity, active-management, and regulatory risks. As with all ETFs, shares may trade at prices above or below their net asset value, particularly during periods of market volatility.

How is PIT structured and taxed?

PIT is structured to provide efficient access to commodities within U.S. tax rules. No Schedule K-1 is required. However, because the Fund trades futures contracts and uses a subsidiary structure, its tax treatment may differ from that of a traditional stock or bond fund. Investors should consult a tax advisor for details on their specific situation.