Potential Protection Against Bear Markets with VanEck’s Asset Allocation Suite
January 13, 2022
Read Time 1 MIN
The difficulty of predicting market cycles highlights the importance of preparation. This means positioning portfolios to help protect assets in bear markets while also being ready to participate when markets again turn favorable. VanEck’s Asset Allocation Suite is designed to participate meaningfully in bull markets and seek to de-risk in bear markets by minimizing the impact of market downturns.
Larger Gains Are Required to Recover from Asset Losses
Source: VanEck. The figures above were achieved by means of a mathematical formula and do not reflect results of any one investment.
VanEck's Asset Allocation Suite
Continuing our pursuit of forward-looking strategies, VanEck has identified a need for asset allocation strategies with the flexibility to adapt across market conditions, offsetting a potential drawback inherent with strategic, buy-and-hold investments. While there are some differences, VanEck’s Asset Allocation Suite share common attributes including:
- Objective, rules-based approaches to make tactical asset allocation decisions.
- Ability to aggressively de-risk in times of market stress.
- Use of liquid, cost-effective ETFs for broad, efficient exposures.
VanEck Long/Flat Trend ETF (LFEQ)
Tactical exposure to U.S. equity with trade signals triggered by technical indicators.
VanEck Inflation Allocation ETF (RAAX)*
Comprehensive exposure across commodities, natural resource equities, REITs, MLPs, and infrastructure.
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Important Disclosures
* Prior to June 23, 2021, the fund was known as the VanEck Vectors Real Asset Allocation ETF.
An investment in the Funds may be subject to risks which include, among others, fund of funds risk which may subject the Funds to investing in commodities, gold, natural resources companies, MLPs, real estate sector, infrastructure, equities securities, small- and medium-capitalization companies, foreign securities, emerging market issuers, foreign currency, credit, high yield securities, derivatives, cryptocurrency, cryptocurrency tax municipal securities, interest rate, call and concentration risks, all of which may adversely affect the Funds. The Funds may also be subject to affiliated fund, U.S. Treasury Bills, subsidiary investment, commodity regulatory, tax, liquidity, gap, cash transactions, emerging markets, investment style, small-, medium- and large-capitalization companies, high portfolio turnover, model and data, management, operational, authorized participant concentration, absence of prior active market, trading issues, market, fund shares trading, premium/discount and liquidity of fund shares, and non-diversified risks. The Funds’ assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors. Municipal bonds may be less liquid than taxable bonds. There is no guarantee that a Funds’ income 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. You can lose money by investing in the Funds. Any investment in a Fund should be part of an overall investment program rather than a complete program.
RAAX® and LFEQ® Fund shares are not individually redeemable and will be issued and redeemed at their net asset value (NAV) only through certain authorized broker-dealers in large, specified blocks of shares called "creation units" and otherwise can be bought and sold only through exchange trading. Shares may trade at a premium or discount to their NAV in the secondary market. You may incur brokerage expenses when trading Fund shares in the secondary market. Past performance is no guarantee of future results. Returns for actual Fund investments may differ from what is shown because of differences in timing, the amount invested, and fees and expenses.
Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise. An investor should consider the investment objective, risks, charges and expenses of a fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
Van Eck Securities Corporation, Distributor
666 Third Avenue
New York, NY 10017
800.826.2333
Related Funds
Important Disclosures
* Prior to June 23, 2021, the fund was known as the VanEck Vectors Real Asset Allocation ETF.
An investment in the Funds may be subject to risks which include, among others, fund of funds risk which may subject the Funds to investing in commodities, gold, natural resources companies, MLPs, real estate sector, infrastructure, equities securities, small- and medium-capitalization companies, foreign securities, emerging market issuers, foreign currency, credit, high yield securities, derivatives, cryptocurrency, cryptocurrency tax municipal securities, interest rate, call and concentration risks, all of which may adversely affect the Funds. The Funds may also be subject to affiliated fund, U.S. Treasury Bills, subsidiary investment, commodity regulatory, tax, liquidity, gap, cash transactions, emerging markets, investment style, small-, medium- and large-capitalization companies, high portfolio turnover, model and data, management, operational, authorized participant concentration, absence of prior active market, trading issues, market, fund shares trading, premium/discount and liquidity of fund shares, and non-diversified risks. The Funds’ assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors. Municipal bonds may be less liquid than taxable bonds. There is no guarantee that a Funds’ income 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. You can lose money by investing in the Funds. Any investment in a Fund should be part of an overall investment program rather than a complete program.
RAAX® and LFEQ® Fund shares are not individually redeemable and will be issued and redeemed at their net asset value (NAV) only through certain authorized broker-dealers in large, specified blocks of shares called "creation units" and otherwise can be bought and sold only through exchange trading. Shares may trade at a premium or discount to their NAV in the secondary market. You may incur brokerage expenses when trading Fund shares in the secondary market. Past performance is no guarantee of future results. Returns for actual Fund investments may differ from what is shown because of differences in timing, the amount invested, and fees and expenses.
Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise. An investor should consider the investment objective, risks, charges and expenses of a fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
Van Eck Securities Corporation, Distributor
666 Third Avenue
New York, NY 10017
800.826.2333