VanEck has announced the launch of the VanEck Commodity Strategy ETF (CBOE: PIT), an actively managed ETF that seeks to provide long-term capital appreciation and attractive risk-adjusted returns by investing primarily in exchange-traded commodity futures contracts across five major sub-sectors: energy, precious metals, industrial metals, agriculture and livestock.
The firm writes that PIT will be managed by David Schassler, Portfolio Manager and Head of Quantitative Investment Solutions at VanEck, and his team and that Schassler brings nearly 20 years of experience to this role.
In the case of PIT, Schassler and the management team employ a strategy that considers risk and return metrics of each commodity, while targeting opportunities along the futures curve in order to maximise the expected risk-adjusted returns. The Fund offers a tax reporting advantage relative to many other commodity investments as it does not produce a K-1 tax form.
“Commodity exposure can play a valuable role in a portfolio, both from a capital appreciation standpoint and as a hedging tool against inflation, which remains at historically elevated levels,” says Schassler. “We’re excited to be launching PIT to offer investors and advisors an actively managed commodity strategy seeking to maximize return within a risk-controlled framework. We look forward to further educating the marketplace about this strategy and the specific role PIT’s actively managed approach can play in a portfolio.”