What Is the RAAX ETF? A Complete Guide to Returns, Fees, Holdings, and Alternative ETFs
An actively managed asset allocation ETF that strategically allocates to real assets expected to benefit from inflation, such as gold, commodities, and infrastructure.
SubscribeWhat Is This ETF?
It invests in a range of real asset ETFs, including commodities, natural resource equities, infrastructure, REITs, and gold. Using a data-driven, rules-based model, it adjusts its weightings according to macroeconomic indicators.
It suits investors who want to protect asset value during periods of rising prices, or who prefer professional asset allocation to investing directly in the complex commodity markets.
Launched by VanEck in 2018, it is an actively managed ETF.
How Does It Invest?
| Item | Details |
|---|---|
| Management Style | Active (asset allocation) |
| Investment Targets | Commodity, gold, infrastructure, and real estate ETFs |
| Rebalancing Frequency | As needed (model-based) |
| Dividend Frequency | Annual |
| Total Expense Ratio | 0.55% |
It diversifies across hard assets that tend to perform well in inflationary environments. In particular, it has a risk-off feature: when market volatility becomes extreme, it can shift a large portion of the portfolio into cash-equivalent assets to actively manage downside risk.
- Dynamic asset allocation based on macroeconomic conditions
- Flexible risk management that can move the entire portfolio into cash when conditions call for it
Size and Costs
Assets under management (AUM) stand at $1.4B, and the expense ratio is 0.55% per year.
Compared with CGBL, which holds traditional weightings of stocks and bonds, it concentrates on real assets, so it serves as a complement to a portfolio during inflationary periods.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeAmid volatile global commodity prices and supply chain issues, the value of real assets has come into focus. Whenever inflation concerns have persisted, it has adjusted its exposure to the gold and energy sectors and shown a resilient track record.
Inflows stand out when demand to hedge against currency depreciation and preference for gold as a safe-haven asset rise. Investor interest is especially strong during lagging, late-cycle phases of rising prices.
Strengths and Weaknesses
It can hedge against inflation risk and add diversity to asset allocation, but investors should be aware of the risks that come with commodity price swings.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
You can compare it with products specialized in risk management, such as CTA and DRSK shown in the table, and if you prefer a traditional 60/40 weighting, NTSX is an alternative. If you want to focus only on gold, consider IAU, and to track commodities broadly, consider DBC. PAVE, which specializes in the infrastructure sector, is another option for real asset investing.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 CGBL | Capital Group Core Balanced ETF | $37.09 | +0.7% | $7.8B | 0.33% | 1.94% | +6.2% |
 IALT | iShares Systematic Alternatives Active ETF | $29.88 | -0.0% | $7.7B | 0.99% | 0.26% | - |
 ALLW | State Street Bridgewater All Weather ETF | $29.18 | +1.2% | $1.8B | 0.85% | 4.4% | +2.0% |
 RLY | State Street Multi-Asset Real Return ETF | $37.10 | +0.1% | $1.4B | 0.50% | 2.9% | +18.6% |
 DRSK | Aptus Defined Risk ETF | $27.30 | +0.5% | $1.4B | 0.79% | 4.01% | -7.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 PIT | VanEck Commodity Strategy ETF | 0.43% | $83.93 | -0.3% | $0.0M | - | 5.61% |
 OUNZ | VanEck Merk Gold ETF | 0.40% | $40.10 | +1.8% | $0.0M | - | - |
 PAVE | Global X U.S. Infrastructure Development ETF | 0.15% | $52.95 | +0.3% | $0.0M | - | 0.81% |
 EINC | VanEck Energy Income ETF | 0.09% | $115.40 | -1.8% | $0.0M | - | 3.5% |
 XLE | State Street Energy Select Sector SPDR ETF | 0.07% | $66.56 | -1.6% | $0.0M | - | 2.29% |
 HAP | VanEck Natural Resources ETF | 0.04% | $74.50 | -0.0% | $0.0M | - | 1.83% |
 GRID | First Trust Clean Edge Smart Grid | 0.04% | $172.11 | -1.4% | $0.0M | - | 0.9% |
Investor Checkpoints
Investing in RAAX is like putting up a shield to protect your assets in an uncertain macroeconomic environment. Please review the following points carefully before investing.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 📈 Price Indicators | Track inflation trends, such as the Consumer Price Index (CPI) | Monitor continuously |
| 💵 Expense Ratio | Review the cost level resulting from the fund-of-funds structure | Moderate |
| 💧 Asset Allocation | Which of gold, energy, and commodities currently carries the highest weighting | Needs checking |
| 🛡️ Risk Management | Whether the market environment is one in which the cash-shift strategy works | Operating normally |
Real assets can fall together in the early stages of an economic downturn. Approach it from a long-term inflation defense perspective, and keep a strategy that does not waver amid short-term price volatility.
It is a sensible tool for navigating inflationary periods through dynamic real asset allocation by professionals. It suits investors who pursue portfolio stability and diversification at the same time.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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