The VanEck Vectors
® Real Asset Allocation ETF (“RAAX”) returned 7.21+% versus +2.63% for the Bloomberg Commodity Index. January started off strongly, RAAX was up 5.39% mid-way through the month, but it gave back much of this performance to finish the month with a total return of 1.24% as fears of dangerous COVID-19 mutations weighed upon the market.[1]
RAAX invests in three types of real assets: financial assets, income assets and resource assets. RAAX evolved and diversified its financial assets in February by gaining exposure to the price of bitcoin. This was accomplished with an initial investment of 2% into the Grayscale Bitcoin Trust. We believe that digital assets may offer RAAX many of the same benefits as gold. Most notably, protection against inflation and currency debasement in addition to overall portfolio diversification.