Multi-Asset – Invest like a True Professional

How to reduce risk without necessarily cutting investment returns.

Delivering Diversification

Creating investment returns while reducing risks through cross-asset diversification is one of the key goals of investing and is practiced by the world’s most professional investors, whether large pension funds, ultra-high-net-worth individuals or even sovereign wealth funds.

What are Multi-Asset Strategies?

Multi-asset investment strategies invest across asset classes such as stocks, bonds and real estate. Because their prices tend not to move in lockstep, spreading an investment portfolio across asset classes can reduce risk without eating into returns.

Investing in multi-asset is like a swing. If one asset class goes down, another might go up and hence compensate.

Asset classes swing

Source: VanEck.

Why VanEck's Multi-Asset Strategies?

Quite simply, VanEck makes multi-asset investing easy, bringing it within reach of the average investor. You can invest in our VanEck Vectors™ Multi-Asset Allocation ETFs and get exposure to different asset classes with one portfolio. The ETF strategies rebalance asset classes once a year to maintain a predefined risk profile, and invest in stocks and bonds from roughly 400 companies and governments. Total all-in costs are no more than 0.32% per year, which compare favorably to other solutions, like actively managed multi-asset funds.

Covering Two Asset Classes

To make sure that our multi-asset ETFs are widely diversified, we include two asset classes. Historically, they have tended not to move up and down in price together – what investment professionals call a low correlation. The asset classes are:

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1. Bonds

Euro Government Bonds
Bonds issued in Euro by Eurozone member states such as Germany, France, Italy and the Netherlands.

Corporate Bonds
Bonds issued by large corporations with an investment-grade rating such as Anheuscher Busch, Daimler, JPMorgan and Siemens. All bonds are issued in euro, to avoid currency risk.

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2. Equities

Global Equities
Stocks from the 250 firms with the largest market capitalization in the world.

Real Estate Stocks
Global stocks of firms from which invest in real estate, such as offices, warehouses and apartments.

Tailored to Your Risk Appetite

Our ETFs come in three variations: conservative, balanced and growth. Each has a different risk profile and a different expected return in the long run. The higher the risk profile, the higher the expected return and vice versa. You select the risk profile based on your risk tolerance.

As you can see in the graph below, the conservative option has had lower volatility and lower return, whereas growth had higher volatility and higher return.

Performance of conservative, balanced and growth ETF options

Performance of conservative, balanced and growth ETF options

Source: VanEck, data for the period 14 December 2009 – 5 October 2020. Past performance is not a reliable indicator for future performance. Please note that the performance includes income distributions gross of Dutch withholding tax because Dutch investors receive a refund of the 15% Dutch withholding tax levied. Different investor types and investors from other jurisdictions may not be able to achieve the same level of performance due to their tax status and local tax rules. Please see disclaimers at the end of the website.

Risk: Investors should consider risks before investing. See dedicated risk factors section on this website.

ETFs in Three Flavors

VanEck Vectors Multi-Asset Conservative Allocation UCITS ETF

The ETF invests in a multi-asset portfolio with a defensive focus.

ISIN: NL0009272764

  • Allocation:
    35% Government bonds
    35% Corporate bonds
    25% Global equities
    5% Real estate stocks
  • Costs:
    0.28% Annual costs

Risk indication: 4 out of 7

Lower risk: Typically lower reward

Higher risk: Typically higher reward

VanEck Vectors Multi-Asset Balanced Allocation UCITS ETF

The ETF invests in a multi-asset portfolio with a neutral focus.

ISIN: NL0009272772

  • Allocation:
    25% Government bonds
    25% Corporate bonds
    40% Global equities
    10% Real estate stocks
  • Costs:
    0.30% Annual costs

Risk indication: 4 out of 7

Lower risk: Typically lower reward

Higher risk: Typically higher reward

VanEck Vectors Multi-Asset Growth Allocation UCITS ETF

The ETF invests in a multi-asset portfolio with an offensive focus.

ISIN: NL0009272780

  • Allocation:
    15% Government bonds
    15% Corporate bonds
    60% Global equities
    10% Real estate stocks
  • Costs:
    0.32% Annual costs

Risk indication: 5 out of 7

Lower risk: Typically lower reward

Higher risk: Typically higher reward

Main Risk Factors

While the diversification in a multi-asset strategy reduces risk, it’s important to remember that all investments carry some risk. Our multi-asset ETFs are subject to the four risks below:

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Investments in real estate securities can be affected by the general performance of stock markets and the property sector. Interest rate changes, in particular, can have a negative impact.

For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on www.vaneck.com.

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