GraniteShares, the ETFs issuer founded by Will Rhind, has $1 billion in assets under management after debuting just three years ago.
Among the firm’s marquee products is the GraniteShares Gold Trust (BAR), which is one of the least expensive and fastest-growing gold ETFs. BAR seeks to reflect generally the performance of the price of gold. The Shares are intended to constitute a simple and cost-effective means of making an investment similar to an investment in gold.
“GraniteShares’ recent growth has been fueled by its flagship gold ETF, BAR, which has swelled to over $917 million in AUM as investors seek safe-haven assets amid coronavirus-inflicted market volatility,” according to a statement from GraniteShares.
Inside the Lineup
Other GraniteShares ETFs include the GraniteShares HIPS US High Income ETF (NYSEArca: HIPS), GraniteShares took control of the fund in late 2017. HIPS also holds closed-end funds and business development companies. BDCs essentially help fund small $5 million to $100 million businesses and offer attractive income opportunities since they are required to pay out 90% of income in the form of dividends, a structure similar to what income investors find with real estate investment trusts.
One of the firm’s newer additions is the GraniteShares XOUT U.S. Large Cap ETF (NYSEArca: XOUT).
XOUT seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the XOUT U.S. Large Cap Index. The ETF basically takes a slab of S&P 500 and trims the unnecessary fat—what’s left are companies that aren’t averse to disruption and constantly innovating in order to adapt to an ever-changing business environment.
“During these challenging economic times, we are fortunate to be able to offer ETF strategies that are timely and relevant for investors,” said Rhind, CEO of GraniteShares. “As we enter our fourth operating year, we remain committed to the firm’s founding tenets of offering unique or differentiated investment strategies with lower costs.”
The firm also offers the GraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF (NYSEArca: COMB), one of the lowest-cost broad commodity ETFs in the U.S.
Speaking of commodities, GraniteShares also issues the GraniteShares Platinum Trust (PLTM).
Platinum, which is charging higher in recent weeks, is primarily used in catalytic converters in diesel-powered automobiles, but environmental concerns previously tamped down demand for the precious metal. As such, the price of platinum has fallen over the years amid weaker demand and excess supply, whereas gold and silver have found safe-haven support on an increasingly dovish Federal Reserve monetary policy outlook and palladium benefited from cars that run on gasoline.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.