VanEck Commodity Strategy ETF's Average Process Pillar and People Pillar ratings result in a Morningstar Medalist Rating of Neutral. The portfolio maintains a sizable cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy earns an Average Process Pillar rating. The strategy earns an Average People Pillar rating. Management team members could invest more of their own money in the fund. The strategy's parent organization earns the firm an Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

Analyst Rating

SentinelOne

Morningstar's evaluation of this fund's process seeks to understand management's investment philosophy, and whether it has been applied consistently over time and can add value across the market cycle. VanEck Commodity Strategy ETF earns an Average Process Pillar rating. The main driver of the rating is the firm's five-year retention rate of 83% over the period. A low expense ratio also bolsters the rating, with costs ranking in its category's second-cheapest fifth. Fees reduce net returns and are one of the most reliable predictors of future performance. Lastly, the process is limited by its parent firm's disappointing risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.6 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

The investment strategy as stated in the fund's prospectus is as follows: 

 The investment seeks to provide long-term capital appreciation.  The fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing, under normal circumstances, in exchange-traded commodity futures contracts, exchange-traded and over-the-counter (“OTC”) commodity-linked instruments, and pooled investment vehicles, including exchange-traded products (“ETPs”) that provide exposure to commodities (“Commodity Instruments”) and Cash and Fixed Income Investments. It does not invest in commodities directly. The fund is non-diversified.

Average

Process

VanEck Commodity Strategy ETF earns an Average People Pillar rating. The most significant contributor to the rating is the combined average five-year excess return of each manager, which shows that the funds they manage have outperformed an average manager. A low cost, with fees that rank in its category's least expensive 20%, also supports the rating. A higher expense ratio reduces net returns, so low costs give this team an advantage. Lastly, the rating is limited by its parent firm's subpar risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.6 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.


The strategy is backed by David Schassler, the longest-tenured manager, who has been a listed portfolio manager for nine years. The strategies they currently manage have an average Morningstar Rating of 3.0 stars, demonstrating average risk-adjusted performance compared with category peers. The team is small but adequately equipped, with only one other supporting manager. Together, the two listed managers have eight years of average listed portfolio management experience. Portfolio managers have made only a small personal investment in the fund, with the maximum investment by either manager being less than $10,000. That isn't sufficient to align their interests with those of the strategy's investors.

People

VanEck’s ownership structure and specialization make it unique among industry peers. The firm’s founding family and namesake still have control, and its product lineup still reflects its legacy as a specialist in niche market segments. VanEck earns an Average Parent Pillar rating. 

Founded by John van Eck in 1955, the firm staked its claim in the industry by capitalizing on burgeoning markets. Starting with the opening of Western Europe to U.S.-based investors in the wake of the Marshall Plan, VanEck’s largest and most successful products provide exposure to areas of the market that are off the beaten path, such as hard assets, emerging-markets debt, and below-investment-grade-rated corporate debt.

Through its history, VanEck has taken an opportunistic approach to product development. For instance, since 2018, VanEck has launched strategies that provide exposures ranging from international REITs to companies involved in video game development. Regardless of where their reach takes them, however, VanEck builds a case that the strategy will be relevant over the long term and that its risks must be easy to understand. However, not all its products catch on, and the firm has shuttered several offerings in the last decade. 

VanEck remains a privately held firm, wholly owned by CEO Jan van Eck and his family. Although this enables the firm to focus on the long term and the firm offers some employees participation in profits, the firm hasn’t used equity as a recruiting and retention tool and introduces some key-person risk in the executive suite.

Parent

VanEck Commodity Strategy ETF

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