GraniteShares, a new and disruptive exchange traded fund provider, has hit the scene with two new ETFs to efficiently capture broad commodities exposure at low costs for investors.
On Monday, GraniteShares came out with the GraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF (COMB) and GraniteShares S&P GSCI Commodity Broad Strategy No K-1 ETF (COMG).
The newly formed GraniteShares is headed by William Rhind, Founder and CEO, whom formerly acted as Principal at BlackRock’s iShares, served as Head of ETF Securities in the U.S. and acted as CEO of the world’s largest commodities fund, the SPDR Gold Shares (NYSEArca: GLD). Rhind explained he was originally from Aberdeen, Scotland, or the so-called Granite City, so GraniteShares was “a nod to my heritage.”
The firm’s ambitious business plan caught the eyes of investors early, with the new ETF provider securing venture capital financing from Bain Capital Ventures and other well-known investors.
GraniteShares may be seen as a disruptive factor in the ETF space as the company tries to shake up the way investors gain commodities exposure.
“This was where we felt the best immediate need for innovation,” Rhind told ETF Trends. “We feel investors have been overpaying for commodity ETFs for too long. GraniteShares wants to change that.”
Rhind explained that there are three ways to be disruptive in the industry: First, be the lowest cost as a way to “disrupt other people’s margins, other people’s products.” Second, invent superior products with a better wrap up. Lastly, be first to market.