VanEck Introduces WBMO with Bitcoin Component
VanEck has officially launched the VanEck Wealth Builder ETF (NYSE: WBMO), an actively managed investment fund that integrates global equities, fixed income, tangible assets, and a strategic allocation towards Bitcoin. David Schassler, who manages the portfolio and leads the multi-asset solutions team at VanEck, noted that “the classic 60/40 allocation model was designed for a different era of investing,” emphasizing that the new product aims to adapt to a broader spectrum of economic conditions. VanEck characterized WBMO as a means for investors to “access a diverse range of investments, including stocks, bonds, gold, and Bitcoin through a single ETF purchase,” with the fund comprising global stocks, bonds, gold, and various other tangible assets.
According to VanEck, WBMO provides Bitcoin exposure in an indirect way, as the fund does not hold any Bitcoin directly. Instead, a fully owned subsidiary based in the Cayman Islands manages certain investments and gets exposure to digital assets through exchange-traded products (ETPs). The gross expense ratio for WBMO has been set at 0.33%, and following a fee waiver of 0.07%, the net ratio comes down to 0.26%.
Understanding the Bitcoin Allocation
VanEck aims for a 2% allocation to Bitcoin, allowing for a range between 1% and 5%, achieving this exposure through a spot Bitcoin ETP rather than through direct ownership of the cryptocurrency. The fund invests in ETFs offered by VanEck and other third parties, with VanEck managing and readjusting the allocations across global equities, fixed income, gold, and other tangible assets. The prospectus does not specify a concrete bitcoin target and cautions that digital asset ETPs can exhibit significant volatility, with some not being registered under the Investment Company Act of 1940.
Investors are not required to set up a wallet, remember a seed phrase, or create an exchange account to access the Bitcoin component, and they do not have direct control over this position in Bitcoin. VanEck also reported that its other cryptocurrency-related fund, NODE, increased its Bitcoin ETP exposure from roughly 7% at the end of June to 16.8% as of the end of September.
Costs, Availability, and Associated Risks
WBMO trades on the NYSE with the ticker symbol WBMO, aggregating its Wealth Builder model portfolios into one accessible product. Anyone with a brokerage account can purchase shares of the fund. The annual gross fee is 0.33%, which is reduced to 0.26% after the manager’s fees and waivers are taken into account. VanEck has pledged to cover the fund’s offering costs until at least February 1, 2028. WBMO may allocate part of its net assets to digital asset ETPs, yet it does not invest directly in digital currencies, highlighting risks like severe market swings and limited investor protections.
Digital asset ETPs can see significant fluctuations, and not all are registered under the Investment Company Act of 1940, missing the protections that the Act offers to investors. VanEck positioned WBMO as a multi-asset ETF that diversifies investments across stocks, bonds, tangible assets, and digital assets within a single fund, while its Multi-Asset Solutions team determines what to invest in, how much to hold, and the ideal timing for rebalancing.