Investors love a good deal when it comes to exchange traded funds and gold ETFs are no exceptions. A pair of recently launched gold ETFs with some of the category’s lowest fees are rapidly gaining attention from investors.
The GraniteShares Gold Trust (NYSE Arca: BAR), which debuted in August 2017, and the SPDR Gold MiniShares Trust (NYSEArca: GLDM), which launched in June, both recently topped the $300 million in assets under management level.
“Last month, after celebrating its one-year anniversary, GraniteShares said its company last month saw its assets under management surpass $350 million; the company’s flag ship product (NYSE: BAR), which as of Oct. 3 saw its assets under management surpass $280 million,” according to Kitco News.
As of the end of the third quarter, BAR had $306.54 million in assets under management. Last month, 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.
When BAR debuted last year, it was easily one of the least expensive gold ETFs on the market, but the competition for inexpensive gold ETFs has been intensifying and some newer products undercut BAR’s 0.20% fee.
More On GLDM ETF
“Not to be outdone, SPRD Gold Minishares, the newest low-cost ETF (NYSE: GLDM), launched four months ago, saw its asset under management hit $312 million last month,” reports Kitco. “The increased inflows came as equity markets sold off sharply in October, seeing their worst month since the financial crisis.”
GLDM was priced at launch to be equivalent to one hundredth of an ounce of gold, as opposed to the SPDR Gold Shares (NYSEArca: GLD) at one-tenth of an ounce. GLDM can be attractive for long-term buy and hold investors whom do not wish to take advantage of GLD’s trading efficiencies and optionality.
GLDM’s annual fee is 0.18%, or $18 on a $10,000 investment.
For more information on the gold market, visit our gold category.