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VanEck, a well-known investment management firm, was founded in 1955 by John C. van Eck in New York City. From its inception, the firm focused on offering innovative investment strategies that centered around international markets and commodities, which were not commonly available to U.S. investors at the time. One of the firm’s early milestones came in 1968 when VanEck launched the first international mutual fund in the United States, known as the VanEck International Investors Gold Fund (INIVX). This fund provided exposure to gold-mining companies, anticipating the growing demand for gold investments as a hedge against inflation and economic uncertainty.

In the following decades, VanEck continued to expand and innovate. In 1985, the firm introduced one of the first emerging markets funds in the U.S., recognizing the growth potential in developing economies. This move further established VanEck’s reputation as a pioneer in offering investment opportunities in less conventional markets. By 1994, the firm had also expanded its offerings to include fixed income with the launch of its first bond mutual fund, broadening its appeal to a wider range of investors.

A significant milestone in VanEck’s history occurred in 2006 when the firm entered the rapidly growing ETF market with the launch of the Market Vectors ETF Trust. These ETFs quickly became some of the most popular in the industry, particularly for their targeted exposure to specific sectors, commodities, and emerging markets. VanEck’s ETFs were recognized for providing investors with access to niche markets that were otherwise difficult to reach, solidifying the firm’s leadership in the ETF space.

By 2011, the Market Vectors Gold Miners ETF (GDX) had become one of the most traded ETFs globally, underscoring VanEck’s expertise and influence in sector-focused ETFs. In 2016, VanEck rebranded its Market Vectors ETFs under the VanEck name, reflecting the firm’s strong identity and reputation in the investment industry.

In recent years, VanEck has been at the forefront of the cryptocurrency and digital assets space, launching cryptocurrency-focused ETFs and mutual funds. The firm has also been active in advocating for the approval of the first Bitcoin ETF in the U.S., although this endeavor has faced regulatory challenges.

Today, VanEck is recognized as a leading global investment management firm, offering a diverse range of investment products, including mutual funds, ETFs, and institutional accounts. The firm remains privately owned, with Jan van Eck, the son of the founder, serving as the current CEO. VanEck’s commitment to innovation and its global reach, with offices in the U.S., Europe, Asia, and Australia, continue to make it a significant player in the investment industry, particularly in areas like commodities, emerging markets, natural resources, gold, and alternative investment strategies.

VanEck has a unique ETF, the VanEck Merk Gold Trust (OUNZ), which allows you to exchange your shares for physical gold.

The stock, founded on May 16 2014, is up 18.81% year-to-date and has total net assets of $1.04 billion. The expense ratio is 0.25%. It even has options traded on it.

The official description of the fund is “VanEck Merk^®Gold Trust seeks to provide investors with a convenient and cost-efficient way to buy and hold gold through an exchange traded product with the option to take physical delivery of gold.”

This gold trust has three major advantages:

Exchange for Bullion

The VanEck Merk Gold Trust holds its gold bullion in the form of allocated London Bars, offering a unique feature that allows investors to take physical delivery of the gold bullion in exchange for their shares.

Choice of Gold Coins or Bars

To facilitate this delivery, Merk has developed a proprietary process that converts London Bars into gold coins and bars in denominations that meet investors’ preferences.

Non-Taxable Event

Importantly, taking delivery of this gold is not considered a taxable event, as investors are simply taking possession of the gold they already own.

So for investors looking for a way of investing in gold, maybe not ready to take physical possession yet but may in the future, this may be an option worth looking at.

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