The GraniteShares Gold Trust (BAR) is proving there is plenty of room for competition in the universe of gold-backed exchange traded funds. Just shy of its second anniversary, BAR is now home to more than $500 million in assets under management.
As of May 16, BAR, one of the lowest-priced gold ETFs on the market, had $500.19 million in assets under management, according to issuer data.
“Since inception, BAR has continued to gain momentum as more investors recognize the benefits of diversifying their portfolios with gold. BAR’s low-cost and convenient ETF structure make it an attractive choice for investors seeking a non-correlated asset to hedge against recent stock market volatility,” according to a statement from GraniteShares.
One side-effect of the thirst for gold bullion is an increase in gold-backed ETF investment. Physically Backed Gold ETFs seek to track the spot price of gold. Most gold-backed ETFs are involved in physically holding gold bullion, bars and coins in a vault on investors’ behalf. Each share of the ETF is worth a proportionate amount of one ounce of the gold. Therefore a gold-backed ETF’s price will fluctuate depending on the value of the gold in the physical vault.
While there is plenty of entrenched competition in the gold ETF arena, BAR has proven to be a credible contender in this space because it is favorably priced. With an annual fee of 0.1749%, or $17.49 on a $10,000 stake, BAR is one of the most cost-effective gold ETFs on the market.
BAR has also shown a willingness to lower fees. The gold ETF debuted with an expense ratio of 0.20%, but cut that fee last October.
““We’re delighted to see investors embrace our low-cost gold offering in today’s volatile market,” said Will Rhind, Founder and CEO of GraniteShares, in the statement. “From the beginning, our mission at GraniteShares has been to provide unique solutions for common pain points experienced by all investors. BAR’s swift accumulation of assets is a testament that our approach of bringing disruptive products to market with better structures and lower fees is resonating with the ETF investing community.”
Other GraniteShares ETFs include the GraniteShares Platinum Trust (PLTM), GraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF (COMB) and the GraniteShares S&P GSCI Commodity Broad Strategy No K-1 ETF (COMG).
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