GraniteShares Gold Trust (BAR)

Overview of US ETF GraniteShares Gold Trust (BAR)

Profile:

The GraniteShares Gold Trust (BAR) is an exchange-traded fund (ETF) that invests primarily in physical gold bullion. It offers investors a convenient way to gain exposure to gold without the hassle of buying, storing, and insuring physical gold. BAR has an expense ratio of 0.18%.

Objective:

The primary investment goal of BAR is to track the price of gold bullion as closely as possible.

Issuer:

GraniteShares is a relatively new ETF issuer, founded in 2018. While they are still building their brand and track record, they have a strong reputation for transparency and innovation. GraniteShares is a subsidiary of Granite Creek Capital Management, which has been managing investments since 2007.

Market Share:

BAR is a relatively small ETF, with a market share of less than 1% of the gold ETF market. However, it has been growing steadily since its launch in 2020.

Total Net Assets:

As of November 2023, BAR has approximately $200 million in assets under management.

Moat:

BAR has several competitive advantages:

• Direct exposure to gold: Unlike some gold ETFs that track futures contracts or gold mining companies, BAR offers direct ownership of physical gold.
• Lower expense ratio: BAR has a lower expense ratio than many other gold ETFs.
• Focus on gold: BAR's investment objective is focused solely on tracking the price of gold, which may appeal to investors who want a pure gold exposure.

Financial Performance:

BAR's financial performance has been strong since its inception, tracking the price of gold closely. The ETF has a historical annualized return of approximately 10%.

Growth Trajectory:

The gold market has been growing steadily in recent years, and this trend is expected to continue in the future, supporting BAR's growth trajectory.

Liquidity:

BAR has an average daily trading volume of over 250,000 shares. The bid-ask spread is tight, indicating that the ETF is relatively easy to buy and sell.

Market Dynamics:

Several factors affect BAR's market environment:

• Global economic uncertainty: Gold is often seen as a safe-haven asset during times of economic uncertainty, which can drive demand for the ETF.
• Inflation: Rising inflation can also drive demand for gold, as it is seen as a hedge against inflation.
• Interest rates: Rising interest rates can make gold less attractive as an investment, as investors can earn a higher return on other assets, such as bonds.

Competitors:

BAR's key competitors are other gold ETFs, such as the SPDR Gold Trust (GLD), iShares Gold Trust (IAU), and VanEck Merk Gold Trust (OUNZ). These ETFs have a larger market share and higher trading volume than BAR.

Expense Ratio:

BAR has an expense ratio of 0.18%, which is lower than the expense ratio of many other gold ETFs.

Investment approach and strategy:

• Strategy: BAR tracks the price of the LBMA Gold Price PM.
• Composition: The ETF invests in physical gold bullion held in a secure vault.

Key Points:

• BAR offers direct exposure to gold at a low cost.
• The ETF has a strong track record of performance.
• BAR is well-positioned to benefit from the continued growth of the gold market.
• Investors should be aware that the gold market can be volatile.

Risks:

• Gold price volatility: The price of gold can fluctuate significantly, and investors could lose money if the price falls.
• Market risk: BAR is also subject to the risks of the stock market, such as economic downturns and interest rate increases.
• Expense ratio: While the expense ratio of BAR is relatively low, it can still impact returns over time.

Who should consider investing:

• Investors seeking a pure gold exposure.
• Investors looking for a hedge against inflation.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an analysis of financial health, market position, and future prospects, we rate the US ETF GraniteShares Gold Trust (BAR) a 7 out of 10. BAR has strong gold exposure, low expense ratios, and a good track record of performance. However, the ETF is relatively small, has a limited market share, and is exposed to gold price volatility.

Resources:

• https://graniteshares.com/etfs/physical-gold-trust/ (official website of GraniteShares Gold Trust)
• https://ycharts.com/indicators/graniteshares_gold_trust_total_net_assets (total net assets)
• https://www.marketwatch.com/investing/fund/bar (market performance)
• https://www.morningstar.com/etfs/equity/gold/gltr/bar (ETF profile)

Disclaimers:

The information provided in this analysis is intended for informational purposes only and should not be construed as investment advice. Investors should conduct their own research and due diligence before making any investment decisions. Past performance is not a guarantee of future results. Investing in ETFs involves risks, and investors could lose money.