A Case for VanEck Real Assets ETF (RAAX)
At the end of 2025 I made the case for buying commodities in 2026. I came into this year already owning a large, core basket of Rio Tinto (RIO), BHP Group (BHP), Freeport McMoran (FCX), and some rare earth stocks and looked forward to further growing these positions. However, 2026 had a such a strong start that I took profits on FCX as a way to fund future purchases. Today, I discovered an ETF that will become my core commodity position because it eliminates company-specific risks: VanEck Real Assets ETF (RAAX). With an ETF like RAAX, I will worry a lot less about tinkering with the stocks of individual commodity-related companies.
The podcast Animal Spirits recently interviewed David Schassler from VanEck to discuss the bullish case for RAAX and its components. The discussion further strengthened my conviction on commodity positioning. Here are some key points that caught my interest:
- Gold is early in its bullish run based on previous cycles.
- Gold is a preferred neutral reserve asset given the U.S.’s adversaries are scared of having dollarized assets confiscated as Russia experienced, and the U.S.’s allies are scrambling for alternatives as the U.S. rapidly dismantles global trade and the previous international order of rules and laws.
- U.S. reshoring of manufacturing capacity replaces cheaper capex with more expensive capex. The required investment comes on top of an already expansive debt position, bullish for gold and commodity consumption.
- The AI buildout requires a large investment in real assets.
- Increased spending and investing will lead to increased global growth. The resulting wealth expansion also expands energy consumption.
Thus, RAAX is speaking my language. For some time now I have claimed that the U.S.’s goal to run its economy hot is bullish for commodities (and real assets in general). As other global economies follow suit, a reinforcing cycle of investing, spending and consumption will keep driving up the prices of real assets.
VanEck Real Assets ETF (RAAX) Holdings
RAAX currently holds the following non-cash assets sorted in descending order of percentage of net assets:
| Ticker | Holding Name | % of Net Assets |
|---|---|---|
| OUNZ US | VanEck Merk Gold Shares | 23.27 |
| PIT US | VanEck Commodity Strategy ETF | 18.37 |
| PAVE US | Global X Us Infrastructure Development | 11.02 |
| EINC US | VanEck Energy Income ETF | 8.42 |
| XLE US | Energy Select Sector SPDR Fund | 6.48 |
| HAP US | VanEck Natural Resources ETF | 4.22 |
| GRID US | First Trust Nasdaq Clean Edge Smart Gri | 3.96 |
| EXI US | iShares Global Industrials ETF | 3.83 |
| GDX US | VanEck Gold Miners ETF/Usa | 3.74 |
| NLR US | VanEck Uranium And Nuclear Energy ETF | 3.57 |
| XLB US | Materials Select Sector SPDR Fund | 3.57 |
| XLU US | Utilities Select Sector SPDR Fund | 3.46 |
| IFRA US | iShares U.S. Infrastructure ETF | 2.95 |
| REZ US | iShares Residential And Multisector Rea | 2.88 |
| GLDM US | SPDR Gold MiniShares Trust | 0.10 |
| IAU US | iShares Gold Trust | 0.10 |
The heavy weighting in gold means I can do more short-term trading in SPDR Gold Shares (GLD) knowing that I will maintain a core position in the precious metal even if I under-estimate the potential profits in a given position. My last trade in GLD has been successful so far thanks to selling short a GLD February $400 put. However, my March/April $500 calendar call spread is now roughly even as GLD sprints back toward $500 much faster than I expected even in my most bullish short-term GLD outlook.
I highly recommend listening to the entire podcast even for readers who are not interested in investing in the real assets sectors. Schassler has a finger on the pulse of the global economy that I find quite compelling. Here is the synopsis of the podcast from the Irrelevant Investor page:
- Why the post-COVID world has created a structural shift in favor of real assets
- RAAX as a one-stop shop covering commodities, gold, infrastructure, energy, and other real asset segments
- The three-step portfolio construction process combining macro, fundamental, and quantitative inputs
- The role gold plays as a neutral reserve asset and why central bank de-dollarization has been a key driver of the bull market
- Why AI infrastructure buildout and reshoring point to a decade-plus capex cycle that benefits real assets
- Why VanEck ultimately decided to exclude crypto from RAAX despite the theoretical case for Bitcoin as a digital store of value
Be careful out there!
Full disclosure: long BHP, long RIO, long GLD calendar call spread