How to Use Gold ETFs to Balance Investing Risk

“The equity market sold off pretty dramatically toward the end of last year, and it really created this sort of prime condition for gold to start increasing in price,” Will Rhind, Founder & CEO, GraniteShares, said at Inside ETFs 2019.

Looking ahead, Rhind argued that trade concerns, a weaker dollar and additional geopolitical risks abroad can continue to support the outlook for the gold asset.

For example, investors may consider the GraniteShares Gold Trust (BAR ), one of the cheapest gold bullion-backed ETFs on the market with a 0.17% expense ratio.

BAR sets itself apart from competitors in that it uses a different custodian to other gold ETFs thereby making it easier for investors to diversify their gold holdings and lower vault concentration risk. ICBC Standard Bank acts as the custodian and the vault that holds the gold bars is located in London.

The gold in BAR is independently inspected by a third party specialist firm two times a year, which means investors can access the reports and look at the gold bars GraniteShares hold. The ETF does not lend out its gold and the bars are held in allocated form.

Each share of BAR represents close to 0.01 ounces of physical gold.

For more ETF-related commentary from Tom Lydon and other industry experts, visit our video category on ETF Trends.