VanEck launched the Wealth Builder ETF today, trading on the NYSE under the ticker WBMO. The actively managed fund packages the firm’s Wealth Builder model portfolios, which advisers have used through third-party platforms, into one product anyone with a brokerage account can buy.
VanEck, which oversees about $244 billion in assets, selects the holdings, sets the weights and rebalances the portfolio.
VanEck describes the product as a way to “gain exposure to a broad mix of investments across stocks, bonds, gold, and bitcoin with a single ETF purchase.” The fund holds global stocks, bonds, gold and other real assets.
Its bitcoin exposure is indirect. WBMO owns no bitcoin. A wholly owned Cayman Islands subsidiary holds certain investments and gains digital asset exposure through exchange-traded products, which are funds that hold bitcoin or track it.
The subsidiary is generally capped at 25% of total assets at each quarter-end, but that limit covers several asset categories. The prospectus sets no specific bitcoin target. Investors do not need a wallet, seed phrase or exchange account to hold the bitcoin slice. They also cannot control the bitcoin position directly.
Details of VanEck’s fund
The fund’s gross expense ratio is 0.33%. A 0.07% fee waiver brings the net ratio to 0.26%. The underlying bitcoin products charge their own fees.
The allocation also limits the swings. If bitcoin rises sharply, WBMO captures only part of the gain. If it falls, bonds and gold should cushion some of the loss, though not prevent it.
VanEck warned in its announcement that digital asset ETPs can be extremely volatile and that some are not registered under the Investment Company Act of 1940, which means they lack certain investor protections.
The firm’s other crypto-linked fund, NODE, raised its bitcoin ETP exposure from about 7% at the end of June to 16.8% at the end of September. NODE holds blockchain companies rather than WBMO’s mix, but it shows how VanEck is using crypto in its portfolios.
Earlier this fall, VanEck’s Head of Digital Assets Research, Matthew Sigel, said the Bitcoin community recognized the risks quantum computing posed to Bitcoin’s cryptography.
“It’s a risk,” Sigel said at the time. “But the community has recognized the scope of the issue. There’s a lot of talent that’s now come together with a framework of how to upgrade the system…The upgrades don’t happen as fast because there’s no CEO who can tell the devs, ‘hey, do it now.’ There’s a governance process — it takes more time, it’s a little bit messier, but there are technological paths for quantum resistance, and I think you’ll see more of that over the next couple of years.”
Major companies, including Coinbase and Blockstream, had begun developing quantum-resistant security measures to prepare for future threats.
A Bitcoin Security Consortium, including BlackRock, Fidelity Digital Assets, and Block, had also been formed to fund open-source security initiatives, including proposals such as BIP-360.