A new offering from the VanEck Quantitative Investment Solutions Group, PIT provides exposure to commodity futures across multiple subcategories.
New York, December 22, 2022–(BUSINESS WIRE)–VanEck has announced the launch of the VanEck Commodity Strategy ETF (CBOE: PIT), which seeks to provide long-term capital appreciation and attractive risk-adjusted returns primarily through exchange-traded funds. Commodity futures contracts in five major sub-sectors: energy, precious metals, industrial metals, agriculture and livestock.
PIT is managed by David Schessler, Portfolio Manager and Head of Quantitative Investment Solutions at VanEck, and his team. He brings nearly 20 years of experience to this role.
In PIT’s case, David and his management team are targeting opportunities on the futures curve to maximize expected risk-adjusted returns while employing a strategy that considers each commodity’s risk and return parameters. Because the fund does not file a K-1 tax form, it provides a tax reporting advantage over many other commodity investments.
“Commodity exposure can play an important role in a portfolio, both in terms of capital appreciation and as a hedge against historically high levels of inflation,” Schassler said. “We are excited to launch PIT to offer investors and advisors an actively managed commodity strategy that seeks returns within a risk-controlled framework. We look forward to further educating the marketplace about this strategy and PIT’s actively managed approach. Play in the portfolio.”
Since the firm launched its first US-based gold equity strategy in 1968 and established its leadership in 1994, VanEyck has been a pioneer in commodity investing.
PIT joins asset allocation solutions from VanEck, which include the recently launched VanEck Dynamic High Income ETF (INC), VanEck Inflation Allocation ETF (RAAX), VanEck Muni Allocation ETF (MAAX) and VanEck Long/Flat Trend ETF (LFEQ). .
The VanEck team provides regular updates and current insights on strategic asset allocation approaches and solutions, which can be accessed here.
Van Eyck has a history of looking beyond financial markets. We were one of the first US asset managers to provide investors with access to international markets. This set the tone for the company’s efforts to identify asset levels and trends. Including gold investing in 1968, emerging markets in 1993 and foreign exchange in 2006 – he subsequently shaped the investment management industry.
Today, VanEek offers active and passive strategies with compelling exposure backed by well-designed investment processes. In the year As of November 30, 2022, VanEyck managed approximately $71.5 billion in assets, including mutual funds, ETFs and institutional accounts. A firm’s ability to improve portfolio diversification ranges from core investment opportunities to unique exposures. Our actively managed strategies are backed by in-depth, bottom-up research and security from portfolio managers with direct experience in the sectors and regions they invest in. Investing, liquidity, diversification and transparency are the keys to experienced decision-making in VanEck’s passive strategies around market and index selection.
In the year
An investment in VanEck Commodity Strategy ETF (PIT) Commodities and Commodity-Related Instruments and Taxes, Futures, US Treasury Bills, Subsidiary Investments, Commodity Controls, Subsidiary Taxes, Gaps, Currency Exchanges, Currency Exchanges, Currency Exchanges, Advanced Currency Exchange, Active Management, Credit, Interest Rates, Derivatives , Affiliate , Pooled Investment Vehicle , Purchase Agreements , Regulator , Affiliated Fund , Market , Functional , Permitted Participant Concentration , New Fund , No Existing Active Market , Business Matters , Trading Fund Shares , Premium/Discount , Liquidity Fund Shares , Undivided , Concentration , municipal securities, money market funds, collateralized/asset-backed securities, and sovereign bond risks, all of which may adversely affect the Fund.
Future contract risk. Using futures contracts involves risks in addition to and greater than those of investing directly in securities and other traditional assets. Futures contracts are subject to collateral requirements and daily limits that may limit the Fund’s ability to achieve its investment objectives. If the Fund fails to achieve its investment objective, the Fund’s returns may be below expectations. In addition, these bond requirements may require the Fund to adjust its position when it does not. Futures contracts show the “futures basis”, which refers to the difference between the current market price of the commodity (the “spot” price) and the price of futures contracts settled in cash. Cash-settled futures contracts generally have a negative futures basis when they trade at a price relative to the underlying market price. If there is a negative futures basis, the Fund’s investments in futures contracts will generally be direct investments in the underlying commodity.
This risk can have a negative impact on “negative rollover products” in “contango” markets. As the expiration date approaches, the Fund will “roll” out of one futures contract and into another futures contract with a later expiration date. The “rolling” feature creates the potential for a significant negative impact on the fund’s performance independent of the underlying commodity price performance. The “spot price” of a commodity is the immediate delivery price of that commodity, as opposed to the futures price, which represents the price for delivery at a certain future date. If futures prices exceed spot prices, the fund is expected to earn a negative rollover yield. A market where futures prices are generally higher than spot prices is called a “contango” market. Therefore, if the futures market for a commodity is in contango, the price of the futures contract on the commodity will decrease over time (assuming the spot price remains unchanged) because the futures will fall when the maximum price is collected. At the end of the lowest spot price. An extended period of contango can result in significant and sustained losses. In addition, due to the frequency with which the Fund enters into futures contracts, the impact on the Fund’s performance may be greater the less frequently the Fund enters into futures contracts.
An investment in VanEck Dynamic High Income ETF (INC) Risks that may include, among others, mutual funds, ETPs, US Treasury securities, interest rates, income levels, significant portfolio turnover, management, leverage, permitted participant concentration, lack of prior income, business issues, markets, funds. Stock Trading, Premium/Discount, Liquidity of Funds, Mutual Funds, New Funds and Non Diversified Risks. The Fund may invest in dividend-paying securities, foreign securities, emerging market issuers, foreign exchange, mortgage REITs, preferred securities, CLOs, credit, high yield securities, interest rate, call and concentration risks, all of which can be purchased. Of these, it can have a negative impact on the fund.
An investment in VanEck Inflation ETF (RAAX) A mutual fund may be exposed to risks which may compel the fund to invest in commodities, gold, natural resource companies, MLPs, real estate sector, infrastructure, equity securities, small and mid cap companies. , foreign securities, emerging market issuers, foreign exchange, loans, interest rates, call and focus risks, derivatives, cryptocurrency, cryptocurrency tax, all of this can have a negative impact on the fund. The Fund may be subject to related funds, U.S. Treasury bills, sub-investment, commodity regulation (with respect to investments in the real estate sector), taxes (with respect to investments in subsidiaries), ETP risks, liquidity, gap, currency swaps. Substantial portfolio turnover, modeling and information, management, operational, permitted participant concentration, no active trading market securities, business matters, market, trading of fund shares, premium/discount and liquidity of fund shares, and non-diversified risks. Foreign investments are subject to risk, including changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations and currency fluctuations that may adversely affect the Fund’s returns. Small and medium capitalization companies may be exposed to higher risks.
An investment in VanEck Muni Allocation ETF (MAAX) It may be exposed to risks which include, fund risk, high portfolio turnover, modeling and data, active management, active, permitted participant focus, no active trading market securities, trading issues, market and fund share trading, premium/discount and liquidity of fund shares. Accidents. The Fund may be subject to the following risks as a result of investing in volatile trading products, including municipal securities, credit, senior yield securities, tax, interest rate, call, territorial concentration and sector concentration risks. . Municipal bonds may be less liquid than taxable bonds. There is no guarantee that a Fund’s income will be exempt from federal, state or local income taxes, and changes in those tax rates or Alternative Minimum Tax (AMT) rates or in the tax treatment of municipal bonds may make them less attractive. Investments and make them lose their value. Capital gains, if any, are subject to capital gains tax. A portion of the dividends you receive may be subject to the AMT.
of VanEck Long/Flat Trend ETF (LFEQ) Equity securities, index tracking, investing in other funds, markets, US Treasury bills, operations, high portfolio turnover, trading of fund shares, premium/discount risk and liquidity of financial shares, passive management, no guarantee of active trading market, Permitted Participant Concentration, Transaction Issues, Exclusions, and Concentration Risks. The fund is considered undiversified and may be subject to greater risk than a diversified fund.
Investing involves high risk and high volatility, including loss of principal. An investor should carefully consider the investment objective, risk, fees and expenses before investing. To obtain a prospectus and summary prospectus containing this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary carefully before investing.
Van Eck Securities Corporation, distributor;
A wholly owned subsidiary of Van Eck Associates Corporation
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New York, NY 10017
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Chris Sullivan / Julia Stoll