VanEck has launched a new ETF delivering actively managed exposure to a diversified basket of commodity futures.

The ETF seeks to maximize risk-adjusted returns while diversifying across all major commodity sectors.

The VanEck Commodity Strategy ETF (PIT US) has been listed on Cboe BZX Exchange with an expense ratio of 0.55%.

Commodities were one of the best-performing asset classes in 2022 with the Bloomberg Commodity Index returning 13.7% for the year.

The performance of individual commodities within the asset class displayed significant dispersion, however. Gold and copper ended the year down with returns of -0.5% and -7.5%, respectively, while agricultural commodities gained 15.3% and energy commodities soared 34.1%.

With many factors clouding the outlook for commodities in 2023, including supply chain disruptions exacerbated by the ongoing war in Ukraine and the impact of recent Covid-19 outbreaks in China on the country’s economy, the ETF may appeal to investors seeking an experienced asset manager to guide their commodity exposure.

Management of the fund is led by David Schassler, Head of Quantitative Investment Solutions (QIS) at VanEck, who brings nearly 20 years of experience to this role.

Harnessing the insights of the QIS team, Schassler will invest the ETF’s assets across all five major commodity sectors – energy, precious metals, industrial metals, agriculture, and livestock – considering the risk and return metrics of each individual commodity including the shape of its futures curve.

The fund makes distributions to investors on an annual basis and offers a tax reporting advantage relative to many other commodity investments as it does not produce a K-1 tax form which some investors may find cumbersome.

Commenting on the benefits of the ETF, David Schassler said: “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.”