VanEck launches high income multi-asset ETF

Nov 15th, 2022 | By | Category: Alternatives / Multi-Asset

VanEck has launched a new actively managed ETF that aims to deliver significant income by investing across the highest-yielding segments of the equity and fixed income markets.

David Schassler, Head of Quantitative Investment Solutions at VanEck

David Schassler, Head of Quantitative Investment Solutions at VanEck.

The VanEck Dynamic High Income ETF (INC US) has been listed on NYSE Arca with an expense ratio of 0.43%.

The fund’s lead portfolio manager is David Schassler, Head of Quantitative Investment Solutions at VanEck, who brings nearly 20 years of direct investment management experience.

Leveraging the capabilities of VanEck’s global equities and fixed income divisions, Schassler seeks to maximize the ETF’s yield per unit of risk by assessing volatility and correlation data to optimize and refine specific exposures.

The fund’s equity income sleeve includes exposures to dividend-paying stocks, business development companies, preferred securities, mortgage REITs, and master limited partnerships, while the fixed income sleeve comprises “fallen angel” high yield bonds, international and emerging market high yield bonds, emerging market local currency bonds, and long-term US Treasuries. Exposure to each underlying segment is obtained by investing in a corresponding VanEck ETF.

The fund actively manages its allocations across market segments, maintaining the flexibility to adapt quickly to changing conditions and take advantage of pricing anomalies.

As of 11 November, the fund had a 30-day SEC yield of 5.05%. Distributions are made to investors on a monthly basis.

Schassler said: “The search for yield can no longer be a static activity. Amidst rising rates, global volatility, and increased economic uncertainty, an active approach that seeks income across a wide range of fixed income and equity exposures will be a powerful tool for investors and advisors. We are thrilled to be launching INC, an ETF that we believe offers a compelling, comprehensive, dynamic, risk-managed means of accessing and allocating among income-generating assets.”

INC joins VanEck’s line-up of asset allocation ETFs which also includes the VanEck Inflation Allocation ETF (RAAX US), VanEck Muni Allocation ETF (MAAX US), and VanEck Long/Flat Trend ETF (LFEQ US).

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