GraniteShares a new kind of ETF company, begun trading a new Gold ETF, the GraniteShares Gold Trust (NyseArca: BAR), on Thursday, August 31, 2017. Here is a synopsis of the new ETF:
FUND INFORMATION:
| Symbol: BAR | Exchange: NYSE ARCA |
| Name: GraniteShares Gold Trust | Net Expense Ratio: 0.20% |
FUND OBJECTIVE:
The GraniteShares Gold Trust will seek to reflect generally the performance of the price of gold.
The Trust was formed in 2017 when an initial deposit of gold was made in exchange for the issuance of two Baskets. The purpose of the Trust is to own gold transferred to the Trust in exchange for Shares issued by the Trust. Each Share represents a fractional undivided beneficial interest in the net assets of the Trust. The assets of the Trust consist primarily of gold held by the Custodian (ICBC Standard Bank Plc, a public limited company incorporated under the laws of England and Wales) on behalf of the Trust.
The objective of the Trust is for the value of the Shares to reflect, at any given time, the value of the assets owned by the Trust at that time less the Trust’s accrued expenses and liabilities as of that time. The Shares are intended to constitute a simple and cost-effective means of making an investment similar to an investment in gold. An investment in allocated physical gold bullion requires expensive and sometimes complicated arrangements in connection with the assay, transportation and warehousing of the metal. Traditionally, such expense and complications have resulted in investments in physical gold bullion being efficient only in amounts beyond the reach of many investors. The Shares have been designed to remove the obstacles represented by the expense and complications involved in an investment in physical gold bullion, while at the same time having an intrinsic value that reflects, at any given time, the price of the assets owned by the Trust at such time less the Trust expenses and liabilities. Although the Shares are not the exact equivalent of an investment in gold, they provide investors with an alternative that allows a level of participation in the gold market through the securities market.
Useful Links:
BAR Home Page
Category: Commodities> Precious Metals> Gold> Physical Gold
ETFtrack comment:
Here is a comment from Will Rhind, Founder and CEO of GraniteShares and former CEO of GLD ETF:
“This is gold. All my life I’ve been in love with its color, its brilliance, its divine heaviness. GraniteShares is giving investors the opportunity to own solid gold bars via the ETF at a price of 20 basis points. By offering BAR at 50 percent less than GLD, we’re looking to turn every suitable investor into a gold digger.”
About GraniteShares
GraniteShares is an independent, fully funded ETF company headquartered in New York City. The firm seeks to launch disruptive ETFs. GraniteShares’ focus is on products that bring the excitement back to investing, using new ideas, innovative structures and low cost. William Rhind, Founder and CEO, is an established ETF entrepreneur with more than 16 years of experience in the industry.