NEW YORK--(BUSINESS WIRE)--Will the gold ETF market ever look the same again?
GraniteShares, a new kind of exchange-traded fund (ETF) company focused on disruption through new exposures, better structures and low-cost investments, today is seeking to set the gold standard for low-cost access to gold with the launch of the 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*. Brought to market by renowned commodities expert, Will Rhind, Founder and CEO of GraniteShares, BAR is half the price of GLD**, of which Rhind was formerly CEO.
“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,” Rhind said. “By offering BAR at 50 percent less than GLD**, we’re looking to turn every suitable investor into a gold digger.”
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*.
GraniteShares strives to construct a suite of disruptive and innovative no K-1 commodities funds. COMG, COMB and now BAR represent convenient, cost-effective ways for investors to potentially hedge against inflation and diversify their portfolios.
GraniteShares is working with BNY Mellon, the largest custody bank in the world*** and ICBC Standard Bank (partly owned by ICBC, the largest bank in the world by assets****) owner of one of the largest vaults in Europe, to offer state-of-the art custody and vaulting solutions to investors. These offerings, paired with BAR's competitive price point, make the fund an excellent choice for investing in gold, in our opinion.
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.
*ETF.com, August, 2017
**GLD-SPDR Gold Shares – is an exchange traded trust. The investment objective of the trust is for the shares to reflect the performance of the price of gold bullion, less the Trust’s expenses. GLD prospectus, May 8, 2017. Trust expense 0.40%
***BNY Mellon, June 30, 2017
The GraniteShares Gold Trust (BAR) must be preceded or accompanied by a prospectus. Please read the prospectus carefully before investing or sending money. To obtain a prospectus visit the link www.graniteshares.com/etfs.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about GraniteShares products, please call (844) 476 8747 or visit the website at www.graniteshares.com. Read the prospectus or summary prospectus carefully before investing.
Commodities and futures are speculative, highly volatile and may not be suitable for all investors. You could lose money by investing in the funds and the Trust.
Shares of the Trust are not insured by the Federal Deposit Insurance Corporation (“FDIC”), may lose value and have no bank guarantee.
BAR is not a mutual fund or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and is not subject to regulation thereunder. The Trust is not a commodity pool for purposes of the Commodity Exchange Act of 1936, as amended. The Trust is recently formed and has a limited history of operations. There can be no assurances that its objective will be met.
Trust shares trade like stocks, are subject to investment risk and will fluctuate in market value. The value of Trust shares relates directly to the value of the gold held by the Trust (less its expenses), and fluctuations in the price of gold could materially and adversely affect an investment in the shares. The price received upon the sale of the shares, which trade at market price, may be more or less than the value of the gold represented by them. Shares of the Trust are bought and sold at market price. Ordinary brokerage commissions may apply and will reduce returns.
Basis point: 100 basis points (bps) = 1%
The Sponsor of the Trust is GraniteShares LLC.
THE TRUST AND FUNDS ARE DISTRIBUTED BY FORESIDE FUND SERVICES, LLC. GRANITESHARES IS NOT AFFILIATED WITH FORESIDE FUND SERVICES, LLC
Investing in the shares involves significant risks, including possible loss of principal. You could lose money on an investment in the Trust. For a more complete discussion of risk factors relative to the Trust, carefully read the prospectus.
Shares are created to reflect the price of the gold held by the Trust, the market price of the shares will be as unpredictable as the price of gold has historically been. This creates the potential for losses, regardless of whether you hold Shares for the short-, mid- or long-term.
The Trust is a passive investment vehicle. The price received upon the sale of shares may be less than the value of the gold represented by them.
The Trust is not a diversified investment, it may be more volatile than other investments.
The Trust may be forced to sell gold earlier than anticipated if expenses are higher than expected.
The Sponsor has no history of operating an investment vehicle like the Trust, its experience may be inadequate or unsuitable to manage the Trust.