VanEck launches Wealth Builder ETF with 2 percent Bitcoin target
The actively managed fund, trading as WBMO on the NYSE, combines global stocks, bonds, and real assets with indirect exposure to Bitcoin.
Key takeaways
- 1VanEck launched its Wealth Builder ETF (WBMO) on the NYSE.
- 2The fund targets a 2 percent Bitcoin allocation, with a range of 1 percent to 5 percent.
- 3Bitcoin exposure is indirect, gained through spot Bitcoin ETPs.
- 4The ETF combines global stocks, bonds, gold, and other real assets.
- 5The fund has a net expense ratio of 0.26 percent.
US asset manager VanEck launched its Wealth Builder ETF (WBMO) on the New York Stock Exchange on Tuesday, offering investors a diversified portfolio with a targeted 2 percent allocation to Bitcoin.
The fund aims for a Bitcoin exposure range of 1 percent to 5 percent, achieved through investments in a spot Bitcoin ETP. VanEck confirmed that the fund does not hold Bitcoin directly; instead, a wholly owned Cayman Islands subsidiary gains digital asset exposure via exchange-traded products.
The Wealth Builder ETF invests in both VanEck and third-party ETFs. It builds on VanEck’s existing Wealth Builder model portfolios, which were previously available to financial advisers through wealth management platforms.
David Schassler, VanEck’s head of multi-asset solutions, said the traditional 60/40 portfolio was built for a different investment era. He added that including real assets alongside stocks and bonds could help investors manage a broader range of economic conditions.
The fund’s gross expense ratio is 0.33 percent, reduced to a net ratio of 0.26 percent by a 0.07 percent fee waiver. The underlying Bitcoin ETPs charge their own fees.
VanEck warned in its announcement that digital asset ETPs can be highly volatile. The company also said some of these products are not registered under the Investment Company Act of 1940, meaning they lack certain investor protections.
The launch follows VanEck’s partnership with retirement platform Basic Capital in March, which made some of its digital asset exchange-traded products available through US employer-sponsored 401(k) plans. VanEck managed approximately $244.1 billion in assets as of September 30.
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