RAAX Recap: When the System Strains, Real Assets Lead>

Why It Matters

The performance underscores how diversified real‑asset strategies can generate outsized returns during inflationary and geopolitically volatile periods, prompting investors to consider real assets for portfolio resilience.

Key Takeaways

• RAAX delivered 16.5% return in Q1 2026, beating benchmarks.
• Commodities contributed ~6.2% points, the primary performance driver.
• Infrastructure and MLPs added 3.6% points amid higher energy prices.
• Gold added 2.9% points, providing safe‑haven ballast.
• Fund rebalanced toward commodities, trimmed infrastructure and REIT exposure.

Pulse Analysis

The first quarter of 2026 highlighted the fragility of global supply chains, with heightened tensions in the Strait of Hormuz and surging energy prices reigniting inflation concerns. In such an environment, real assets have moved beyond a simple hedge to become a core component of resilient portfolios. Investors are increasingly looking for exposure that can capture commodity price spikes while offering diversification against traditional equity volatility, making ETFs like RAAX especially attractive.

RAAX’s 16.5% return was driven by a disciplined, active allocation process. Commodities, anchored by the VanEck Commodity Strategy ETF, supplied the bulk of the upside, while natural‑resource equities added another 4 percentage points. Income‑focused holdings such as infrastructure and master‑limited partnerships contributed 3.6 points, reflecting higher energy prices and stable cash flows. Even the capital‑preservation segment, led by gold, added nearly 3 points, underscoring the fund’s balanced approach across growth, income, and defensive assets.

Looking ahead, the fund’s positioning suggests a continued bias toward sectors benefiting from electrification, AI‑driven power demand, and reshoring of critical industries. As inflation pressures persist and geopolitical risks remain elevated, real‑asset exposure offers investors a way to capture upside while mitigating downside risk. RAAX’s modest expense ratio and diversified framework make it a practical vehicle for those seeking to embed real‑asset resilience into broader portfolio construction.