RAAX Implementation Enhancements: Frequently Asked Questions

• Will RAAX still hold ETFs?
• How are the fees handled for PIT and OUNZ?
• Is the investment strategy for RAAX changing?
• How will individual equity holdings be selected?
• Does this create concentration risk?
• Will the risk profile of RAAX change?
• What investment outcome should investors expect?
• How to Buy VanEck ETFs?

RAAX is transitioning from an ETF-of-ETFs structure for its equity exposure to a portfolio of individual equity holdings. This enhancement is designed to improve implementation efficiency by reducing acquired fund fees and expenses associated with the ETF-of-ETFs structure. Investors will continue to receive the same diversified exposure to real assets and the same investment philosophy that has historically defined RAAX, while the investment team gains greater control over portfolio exposures.

Will RAAX still hold any ETFs?

Yes. RAAX will continue to hold ETFs for commodity exposure, specifically the VanEck Commodity Strategy ETF (PIT) and the VanEck Merk Gold ETF (OUNZ). These vehicles provide the most practical and efficient access to commodity markets, where direct ownership is not feasible in the same way as it is for equities.

How are the fees handled for PIT and OUNZ?

The expense ratio for PIT will be rebated to RAAX investors, so investors will not bear those costs indirectly. OUNZ holds physical gold and is not a registered investment company under the Investment Company Act of 1940, so it is not subject to acquired fund fees and expenses (AFFE) disclosure requirements. This means OUNZ’s costs are not reflected in RAAX’s stated AFFE figure; however, RAAX investors still indirectly bear OUNZ’s expenses through the fund’s investment in OUNZ. Unlike PIT, those costs are not rebated.

An investment in the VanEck Merk Gold ETF ("OUNZ", or the “Trust”) is subject to significant risk and may not be suitable for all investors. OUNZ is not an investment company registered under the Investment Company Act of 1940 (the “1940 Act”) and therefore is not subject to the same protections as mutual funds or ETFs registered under the 1940 Act.

Is the investment strategy for RAAX changing?

No. RAAX will continue to implement its three-step investment process. This transition only impacts how the fund gains exposure, not the strategy itself.

How will individual equity holdings be selected?

Holdings are selected through a disciplined sampling process designed to capture the most consequential return drivers within each real assets category. The process samples based on both market capitalization and momentum, helping ensure that the portfolio reflects the key forces driving performance across each universe of holdings.

Does this create concentration risk?

No. The sampling methodology is designed to maintain broad diversification across securities, industries, and real asset categories. Individual position sizes are controlled through portfolio construction rules, and security-level deviations from the fully replicated portfolio are limited to no more than 1%.

Will the risk profile of RAAX change?

No. The objective of the transition is to improve implementation efficiency, not to materially alter the portfolio’s risk characteristics. The portfolio will continue to provide diversified exposure across the major real asset categories.

What investment outcome should investors expect?

Investors should expect the same diversified exposure to real assets and the same investment philosophy that has historically defined RAAX. The primary benefit of the new structure is improved implementation efficiency through the elimination of acquired fund fees and expenses associated with the prior ETF-of-ETFs approach, while continuing to capture the key return drivers across real asset equity segments and enhancing the investment team’s ability to actively manage portfolio exposures.

How to buy VanEck ETFs?

Learn more here.