Advisors and investors consistently prove that when it comes to exchange traded funds, fees matter and that is true across any asset class, including commodities. Just look at the GraniteShares Gold Trust (BAR).
BAR, which debuted in August 2017, has an annual expense ratio of 0.1749%, or the equivalent of $17.49 per year on a $10,000 investment. That makes BAR one of the least expensive gold ETFs on the market today and as one of the cheapest gold ETFs, BAR is also one of the fastest-growing gold ETFs.
As of the end of the third quarter, BAR had $306.54 million in assets under management. In October, GraniteShares lowered BAR’s annual fee to 0.1749%, making it one of the least expensive gold ETFs on the market. BAR debuted with an annual expense ratio of 0.20%, or $20 on a $10,000 investment, but the upstart gold ETF is now less expensive.
As of Friday, Feb. 8th, BAR had $457.61 million in assets under management, according to GraniteShares data.
Becoming A Giant Among Gold ETFs
Gold may continue to shine in 2019. As the market environment shifts, some analysts believe that the depressing influences on gold that occurred during the before the last quarter of 2018 will not likely be repeated in 2019. Furthermore, gold will see continued investment demand among the emerging markets, along with increased demand for safe-haven plays across developed markets.
‘‘Evidence shows that lowering fees by as little as one basis point can be a difference of hundreds of millions of dollars in flows across the entire ETF industry, not just the gold space,’’ James Seyffart, an analyst at Bloomberg Intelligence, said in a phone interview with Bloomberg News. ‘‘Cost is a big determinant in return over the long run.”
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 (COMG) . It subsequently issued the fast-rising BAR in August 2017, and has since launched the GraniteShares Platinum Trust (PLTM) and acquired the GraniteShares HIPS US High Income ETF (HIPS) , a high alternative income-focused fund that invests in pass-through securities.
To go along with BAR, GraniteShares offers the GraniteShares Platinum Trust (NYSEARCA: PLTM), which debuted in early 2018. PLTM charges 0.5% per year, or $50 on a $10,000 investment.
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