BAR VS GLDM: Tracking Methods & Exposure
4 min read
By Ron Koren, ETF Insider

BAR VS GLDM: Tracking Methods & Exposure

Exchange-Traded Funds (ETFs) have transformed the landscape of modern investing by offering diversified exposure to various sectors and asset classes. In this article, we will conduct an in-depth analysis of two prominent gold ETFs: BAR (GraniteShares Gold Trust) and GLDM (SPDR Gold MiniShares Trust). We will explore a range of factors, including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking methods, and exposure.

BAR VS GLDM: Overview

BAR and GLDM are two gold ETFs that cater to investors seeking exposure to the precious metal market. While both ETFs are focused on gold, they differ in their approach. BAR is designed to track the performance of gold through a physically backed model, while GLDM aims to offer investors a more affordable way to access gold by using a fraction of an ounce per share. Understanding these distinctions is crucial for making informed investment decisions.

BAR VS GLDM: Sectors and Top Holdings

The BAR ETF is primarily invested in physical gold, with each share representing a certain amount of gold held in secure vaults. GLDM, on the other hand, invests in a pool of gold bars but uses a fractional gold ownership model. Examining the sectors and top holdings of these ETFs helps investors grasp the underlying assets and potential risks associated with their investments.

BAR overlap BAR VS GLDMBAR overlap BAR VS GLDM

BAR VS GLDM: Capitalization and Strategy

BAR boasts a substantial Asset Under Management (AUM), indicating its popularity among investors seeking exposure to gold's value. Its strategy revolves around closely tracking the price of gold. In contrast, GLDM's approach involves making gold more accessible to a wider range of investors through fractional ownership. The difference in capitalization and strategy between these two ETFs can significantly influence their returns and risk profiles.

BAR VS GLDM: Tracking Methods and Exposure

The tracking mechanisms employed by BAR and GLDM vary significantly. BAR uses a one-to-one backing with physical gold to mirror its price, providing direct exposure to gold's price movement. In contrast, GLDM divides each ounce of gold into a fraction of an ounce, making it more affordable for investors while still providing exposure to the precious metal's price fluctuations. Understanding these tracking methods helps investors decide which ETF aligns better with their investment goals.

Conclusion

BAR and GLDM are distinct ETFs that cater to different types of investors seeking exposure to the gold market. For those who wish to delve deeper into the intricacies of their holdings, correlations, overlaps, and other insightful information, ETF Insider emerges as an indispensable tool. With its user-friendly app, ETF Insider offers extensive details about various financial instruments, empowering investors to make more informed decisions.

Disclaimer: This article does not offer any investment advisory services.

Sources:

BAR ETF issuer
BAR ETF official page

GLDM quote and analysis

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