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.

“Commodity ETFs are an area of the market where in our opinion, investors have been poorly served and we’re trying to change that,” he said. “We just want to offer great ETFs at low prices, it’s that simple.”

Unlike other Equity or Bond ETFs, Rhind said there is no index for gold ETFs.

“It’s just metal in a vault, and we all own the same size gold bars,” he said. “It’s not like an emerging markets ETF where you can say that one index has slightly more or less stocks in it than another index. In other words, it’s just like comparing a generic drug to a branded one. It’s the same thing so why pay more for the branded one? Investors now have to act as fiduciaries and so providing lower cost options just helps them do that.”

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BAR is the third fund in the GraniteShares product suite, joining the GraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF (COMB) and the GraniteShares S&P GSCI Commodity Broad Strategy No K-1 ETF (COMG), both of which launched in May 2017 and are also among the least expensive commodities funds available.

“We are now seeing good traction on our two flagship broad commodity ETFs: COMB and COMG,” Rhind said. “We’re continuing our low cost no K-1 range of ETFs with BAR.”

For more information on the gold market, visit our gold category.