Investors looking for the lowest priced gold ETF to diversify their gold holdings with lower vault concentration risk can look to the newly launched GraniteShares Gold Trust (NYSE Arca: BAR).
The fund begins trading today and boasts the lowest expense ratio of all gold ETFs in the marketplace at 20 basis points.
Will Rhind, Founder and CEO of GraniteShares, said BAR is half the price of SPDR Gold Shares (NYSEArca: GLD), of which he was formerly CEO.
“BAR is unique as it is the lowest cost physical gold ETF in the market at 20bps per annum,” Rhind told ETF Trends. “What sets BAR apart is that it uses a different custodian to other gold ETFs thereby making it easier for investors to diversify their gold holdings and lower vault concentration risk.”
Rhind said the gold in BAR is going to be independently inspected by a third party specialist firm two times a year, which means investors can access the reports and look at the gold bars GraniteShares hold on its website.
“BAR does not lend out its gold and the bars are held in allocated form,” he said. “We’ve tried to hold ourselves to a higher standard with BAR and given my experience managing GLD and other metal ETFs in the past, I wanted take all that experience make sure BAR is the best expression of what I believe a gold ETF should be.”
GraniteShares sets out to be a disruptive new issuer in the ETF space.
Rhind said its DNA is anchored in the Fintech space and as such they’re trying to re-invent commodity investing.