BAR vs FGDL

BARBGraniteShares Gold Trust

FGDLBFranklin Responsibly Sourced Gold ETF

In short

BAR Real bars in a London vault, listed one by one on the sponsor's site every day. BAR landed in 2017 as the boutique fee-fighter among gold trusts: no lending, no derivatives, a 0.17% sponsor fee.

FGDL Gold with a paper trail. FGDL holds only London Good Delivery bars refined since January 1, 2012, the vintage covered by the LBMA's Responsible Gold Guidance, for a 0.15% sponsor fee.

Stated mandate

BAR The Trust seeks to have each Share’s value reflect the value of its gold assets after accrued expenses and liabilities, providing a simple way to invest similarly to gold.

FGDL The Fund seeks to track the price of gold bullion, after deducting expenses. Its assets consist only of gold bullion and cash, if any.

Why people hold it

• BAR Bullion only: the gold sits in ICBC Standard Bank's London vault, lending of the metal isn't permitted, and the trust can't hold derivatives.graniteshares.comsec.gov
• You can check the claim: the bar list is published daily, and outside inspector Bureau Veritas visits the vault twice a year, one of those visits at random.graniteshares.comgraniteshares.com 2
• Plain passive plumbing: mirror the LBMA Gold Price PM less expenses. It has hugged that gold benchmark very tightly.

• FGDL The mandate is written into the trust: only bars refined on or after January 1, 2012, under LBMA guidance that makes refiners document environmental, anti-laundering and human-rights practices.sec.gov
• At 0.15%, it undercuts SGOL at 0.17%, the other US physical gold fund built around the same post-2012 bar screen.aberdeeninvestments.com
• Simple plumbing: a grantor trust holding gold bullion and cash only, bars vaulted with JPMorgan in London, valued against the LBMA Gold Price PM.franklintempleton.com
• Sits in the upper half of the physical gold group on our review, with a fee close to what the category typically charges.

Worth knowing

• BAR No income here. Gold pays nothing, and the trust sells a sliver of its bullion to cover expenses, so the ounces behind each share drift down over time.graniteshares.com
• Cheaper doors to the same metal exist: GLDM and IAUM both undercut BAR's fee, and BAR is only moderately traded next to the category's volume leaders.
• Tax quirk of the wrapper: under current law, long-term gains on gold held through the trust are taxed as collectibles, at a maximum 28% rate.sec.gov

• FGDL Thinly traded next to the category's giants, so bid-ask spreads can run wider and larger orders take more care.
• Bullion pays no income, so there is nothing to distribute. The fund has not paid out, and its result is gold's price less the 0.15% fee.
• Cheaper bullion exists for buyers who do not need the sourcing screen: IAUM at 0.09% and GLDM at 0.10%.

Full BAR profile⁠

Full FGDL profile⁠