VanEck Municipal Allocation Portfolio
Overview
The VanEck Muni Allocation Strategy seeks maximum long-term after-tax return consisting of capital appreciation and income generally exempt from federal income tax. In pursuing long-term total return, the Strategy seeks to reduce duration and/or credit risk during appropriate times by allocating primarily to VanEck municipal exchange-traded products that invest in tax-exempt bonds.
Highlights
- Actively allocates based on interest rate and credit opportunities.
- Technical and macroeconomic indicators seek to manage credit and duration risk.
- Performance oriented strategy offers the potential for capital appreciation plus tax-exempt income.
Credit Quality (%)† as of 07/31/2024
Composite | % of Net Assets | |
---|---|---|
Investment Grade | AAA | 4.69 |
AA | 18.99 | |
A | 10.19 | |
BBB | 10.88 | |
Non-Investment Grade | BB | 6.49 |
B | 1.94 | |
CCC | 0.46 | |
CC | 0.00 | |
Total Investment Grade | -- | 44.75 |
Total Non-Investment Grade | -- | 8.89 |
Not Rated | -- | 45.90 |
Top Holdings as of 07/31/2024
Download All HoldingsHolding Name |
% of Net Assets |
---|---|
VanEck High Yield Muni ETF | 29.86 |
VanEck Intermediate Muni ETF | 29.00 |
VanEck Long Muni ETF | 19.91 |
VanEck CEF Muni Income ETF | 15.95 |
VanEck Short High Yield Muni ETF | 4.96 |
Maturity (%)
as of 07/31/2024
Average Portfolio Maturity: 16.37 Years
Geographical Weightings (%)
as of 07/31/2024
State | % of Net Assets |
---|---|
● [Unassigned] | 16.05 |
● New York | 13.68 |
● California | 12.62 |
● Texas | 7.17 |
● Illinois | 5.89 |
● Florida | 3.39 |
● Pennsylvania | 3.34 |
● Puerto Rico | 3.10 |
● New Jersey | 2.93 |
● Massachusetts | 2.29 |
● Ohio | 2.13 |
● Washington | 1.87 |
● Colorado | 1.86 |
● Arizona | 1.71 |
● Georgia | 1.63 |
● Virginia | 1.42 |
● Alabama | 1.32 |
● Maryland | 1.27 |
● Wisconsin | 1.13 |
● Michigan | 1.12 |
● Other/Cash | 14.10 |
Sector Weightings (%)
as of 07/31/2024
Sector | % of Net Assets |
---|---|
● Unassigned | 99.48 |
● Transportation | 0.05 |
● Cash | 0.47 |
Investment Professionals
David Schassler
- Head of the Multi-Asset Solutions (MAS) Team
- Portfolio Manager for multiple allocation strategies spanning real assets, multi-asset income, thematics, municipals, and trend-following U.S. equities
- Joined VanEck in 2012
- Prior to VanEck, Director and Portfolio Manager within the UBS Portfolio Strategy Group
- MBA, Finance, New York University
- BS, Business Economics, State University of New York College at Cortland
John Lau, CFA
- Deputy Portfolio Manager for multiple allocation strategies spanning real assets, multi-asset income, thematics, and municipals
- Joined VanEck in 2007
- Prior to his current role, served as Fund Analyst at VanEck
- CFA charterholder; member of the CFA Society New York
- BS, Business Administration (concentration in Financial Analysis), State University of New York at Buffalo
Important Definitions & Disclosures
The model is not a mutual fund or other type of security and will not be registered with the Securities and Exchange Commission as an investment company under the Investment Company Act of 1940, as amended, and no units or shares of the model will be registered under the Securities Act of 1933, as amended, nor will they be registered with any state securities regulator. Accordingly, the model is not subject to compliance with the requirements of such acts.
An investment in the Strategy may be subject to risks which include, among others, municipal securities, credit, interest rate, call, California, New York, Illinois and Texas State issuer bonds, special tax bond, private activity bonds, health care bond, industrial development bond, tobacco bond, transportation bond, water and sewer bond, market, operational, sampling, index tracking, tax, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, underlying fund shares trading, premium/discount and liquidity of underlying fund shares and concentration risks, all of which may adversely affect the Strategy. High-yield municipal bonds are subject to greater risk of loss of income and principal than higher-rated securities, and are likely to be more sensitive to adverse economic changes or individual municipal developments than those of higher-rated securities. Municipal bonds may be less liquid than taxable bonds. There is no guarantee that the Strategy’s income or income of underlying assets will be exempt from federal, state or local income taxes, and changes in those tax rates or in alternative minimum tax (AMT) rates or in the tax treatment of municipal bonds may make them less attractive as investments and cause them to lose value. Capital gains, if any, are subject to capital gains tax. A portion of the dividends you receive may be subject to AMT.
All investing is subject to risk, including the possible loss of the money you invest. As with any investment strategy, there is no guarantee that investment objectives will be met and investors may lose money. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future results.
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