Buy ETRs not ETFs

Discussion in 'Commodities Forum' started by JadeDoo, Apr 24, 2014.

  1. JadeDoo

    JadeDoo Well-Known Member

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    Why buy Gold ETF when you can buy Gold ETRs (Electronic Traded Receipts)? For those that don't know the Royal Canadian Mint released ETRs a few years ago. They are basically traded like your traditional SPDR GLD ETF except with ETRs it's backed by gold and if you have a large enough holding you can actually request the physical. Additionally, the management fee is much lower. It's still relatively new so it's not as liquid but if you are looking to hold for long-term it seems to be an easy better choice. Lower fees and safer than GLD.
     
  2. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Liquidity is important to me personally, even if I don't actually plan to sell. Just knowing that I can always have buyers willing to buy quickly at a fair price is important to me.
     
  3. JadeDoo

    JadeDoo Well-Known Member

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    Well, if you are a not buying if your not trading huge blocks it should be fine. The spread is a bit wider but there'll generally but there'll aways be a buyer and seller. It's not like a junior exploration mining company or anything like that. Market Cap in in the hundred of millions. It's a crown corporation so it's backed by the Canadian Government. But ya, it's quite new at the moment but I believe it should become more liquid as time goes on.

    Ticker: MNT on the TSE if you wanna take a look at it.
     

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