- VanEck launched its Wealth Builder ETF (WBMO) on NYSE Arca, offering diversified exposure through other ETFs with a net annual expense ratio of 0.26%.
- The fund allocates across equities, bonds and real assets, with Bitcoin exposure targeted at 2% and permitted to range between 1% and 5%.
- WBMO’s largest holdings include S&P 500 and Nasdaq 100 ETFs, while its Bitcoin allocation through VanEck’s HODL ETF stood at 1.89%.
VanEck is pushing crypto further into the mainstream with a recent product release. On 27 October, the firm announced WBMO, the VanEck Wealth Builder ETF. It’s what the asset manager calls an all-in-one fund, offering exposure to stocks, bonds, real assets and up to 5% in digital assets.
Rather than holding stocks, bonds or Bitcoin directly, WBMO invests in other ETFs, with VanEck managing the allocations and rebalancing the portfolio.
WBMO comes with a net annual expense ratio of 0.26%, down from 0.33% after fee waivers, and can be traded by retail investors on the NYSE Arca.
The fund builds on VanEck’s existing Wealth Builder investment portfolios, bringing the strategy into a single ETF that investors can buy through a brokerage account.
As this is a brand-new fund, its 37 holdings had a total net asset value of just US$251,640 (AU$357,857) as of 26 October. The only crypto holding is a 1.89% holding in the VanEck Bitcoin ETF (HODL).
Related: Galaxy Says Bitcoin’s Bear Market Ended in June, Sees Room to Retake $125,000
What’s in WBMO?
The largest holdings are the State Street SPDR Portfolio S&P 500 ETF (SPYM) with 17.54% and the Invesco Nasdaq 100 ETF (QQQM) with 11.65%.
Two of the bond ETFs are the iShares 7-10 Year Treasury Bond ETF (IEF) with a 9.67% share and the iShares 1-3 Year Treasury Bond ETF (SHY) with a 4.82% share.
Among the many smaller holdings are specific bets on semiconductors and emerging markets, as well as a 3.63% exposure to gold via the VanEck Merk Gold ETF (OUNZ).
The target for Bitcoin within WBMO is 2%, while the permitted range is between 1% and 5%.
Related: Strategy Pauses Bitcoin Purchases as Strive Buys Another US$511M
Moving Beyond the Traditional 60/40 Portfolio
David Schassler, VanEck’s portfolio manager and head of multi-asset solutions, said investing in assets beyond stocks and bonds could help investors navigate a changing economic landscape.
The traditional 60/40 portfolio was built for a different investment landscape.
David Schassler, VanEck’s portfolio manager and head of multi-asset solutions The classic 60/40 portfolio splits investments between 60% stocks and 40% bonds, aiming to balance growth with stability and income.
BitMEX co-founder Arthur Hayes has also questioned the role of bonds in investment portfolios, particularly during periods of high inflation. In a 2021 essay, Hayes argued that rising interest rates could leave bond investors facing substantial losses.
Against that backdrop, asset managers like VanEck are offering more diversified products, adding Bitcoin while still retaining bond exposure.
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