VanEck launched the VanEck Wealth Builder ETF (NYSE:WBMO), an actively managed fund combining global equities, fixed income, real assets and a measured Bitcoin allocation. The ETF has a 0.33% gross expense ratio.
WBMO aims to simplify portfolio construction by handling asset selection, allocation and rebalancing within a single fund. The strategy also incorporates exposure to transformative technologies, gold and other real assets, alongside diversified global stocks and multiple sources of fixed income.
“The traditional 60/40 portfolio was built for a different investment landscape,” said David Schassler, portfolio manager and head of Multi-Asset Solutions at VanEck. He said extending allocations beyond stocks and bonds could help investors navigate a wider range of economic conditions.
The fund builds on VanEck’s Wealth Builder model portfolios, using both VanEck and third-party ETFs to implement the firm’s long-term macro outlook.
QUICK CONTEXT: Beyond the Traditional 60/40 Portfolio
The traditional 60/40 portfolio allocates 60% to equities and 40% to bonds. While this approach combines growth potential with income and diversification, its performance can suffer when stocks and bonds decline together, such as during periods of persistent inflation.
Multi-asset strategies seek to broaden diversification by incorporating investments such as gold, commodities and, in some cases, Bitcoin. These assets have different risk and return characteristics and may respond differently to inflation, interest rates and market volatility. However, adding more asset classes does not guarantee lower losses or better returns.
Actively managed allocation funds give investors exposure to multiple investments while leaving asset selection and rebalancing to the portfolio manager. Investors should consider management fees, underlying fund expenses, allocation decisions and the risks associated with volatile assets such as bitcoin before investing.
Photo: Shutterstock
