The end of 2018 may have burned an image of volatility in investors’ minds that would drive their decisions when reassessing their portfolios for 2019. As such, alternatives to diversify and counteract volatility are on the investment agenda, making exchange-traded funds (ETFs) focused on commodities and alternative investments a prime alternative–something evident in GraniteShares’ latest milestone.
GraniteShares, a disruptive ETF company, has become one of the fastest-growing asset managers in the U.S. by accumulating over $500 million in assets under management (AUM), representing 1,180 percent growth over the last year alone.
This surge is led by the GraniteShares Gold Trust (NYSEArca: BAR), which has swelled past $430 million in AUM, having already attracted $113 million in 2019. With an expense ratio of just 17.49 basis points, BAR is one of the lowest-cost ways to invest in gold.
Additionally, the GraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF (NYSEArca: COMB), one of the lowest-cost broad commodity ETFs in the U.S., recently surpassed $50 million in AUM.
“We founded GraniteShares to provide simple, cost effective access to commodity and alternative investments,” said Will Rhind, Founder and CEO of GraniteShares. “We’re thrilled with the investor appetite for our ETF suite thus far, and remain committed to providing the best-in-class solutions to our clients.”
Timing is Auspicious for Commodities
During the bout of volatility that took hold of the capital markets near of the end of 2018, stocks and bonds did something they don’t normally do–exhibit positive correlation. As equities were getting roiled with volatility, the tried and true safe haven of Treasuries were falling as yields were climbing.
This lockstep between stocks and bonds was not something typically seen within the capital markets as both are prone to marching to the beat of their own drum. However, the music they were making was something analysts were listening to closely, but something investors would like to ignore.
Commodities, however, lack correlation to both stocks and bonds–something investors will appreciate moving forward as a volatility protection measure.
“As high volatility and uncertainty punctuate the market, the timing is ideal to invest in commodities, especially gold,” said Rhind. “Our competitively priced products offer investors a unique opportunity to capitalize on this potential.”
GraniteShares launched in May 2017 to impressive investor interest in its two flagship funds, COMB and the GraniteShares S&P GSCI Commodity Broad Strategy No K-1 ETF (NYSEArca: COMG). It subsequently issued the fast-rising BAR in August 2017, and has since launched the GraniteShares Platinum Trust (NYSEArca: PLTM) and acquired the GraniteShares HIPS US High Income ETF (NYSEArca: HIPS), a high alternative income-focused fund that invests in pass-through securities.
For more information on the GraniteShares ETF suite, please visit www.graniteshares.com.
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