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Thesis
The VanEck Real Assets ETF (NYSEARCA:RAAX) is an interesting fund. We came across this name as part of a research project and wanted to dig more into the name. As per the fund objective:
VanEck Real
RAAX: Gold, Energy And Materials In One Fund
Summary
- RAAX aims for long-term total returns by investing in real assets through an "ETF of ETFs" structure, with major allocations to energy (45%), gold (25%), and a blend (30%).
- The fund has performed well during the recent inflationary environment, achieving a +37% total return since early 2022.
- Despite its performance, the analysis suggests RAAX's complex structure and 0.75% expense ratio may be a drawback.
- This outperformance relative to broader natural resource funds is largely attributable to its significant exposure to gold and gold miners.
With an investment banking cash and derivatives trading background, Binary Tree Analytics ('BTA') aims to provide transparency and analytics in respect to capital markets instruments and trades. BTA focuses on CEFs, ETFs and Special Situations, and aims to deliver high annualized returns with a low volatility profile. We have been investing for over 20 years after obtaining a Finance major at a top university.
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