GraniteShares, a new kind of exchange-traded fund (ETF) company, has accumulated over $1 billion in assets under management (AUM) in just three years. GraniteShares’ recent growth has been fueled by its flagship gold ETF, BAR, which has swelled to over $917 million in AUM as investors seek safe-haven assets amid coronavirus-inflicted market volatility.
While cutting losers has always been investing best practice, COVID19 lends a renewed imperative to this endeavor. The unpopular, yet unequivocal, reality is that not every company will survive this maelstrom—entire swaths of the economy will be subject to irretrievable impairment. This problem may the chief focus of the XOUT index, as owning potentially clear stock market losers is a luxury investors may no longer afford.
GraniteShares ETFs is pleased to announce that its latest fund launch XOUT won the Best New Smart Beta ETF Award from ETF.com! We are thrilled to receive this distinguished industry recognition for XOUT, which flips the investment paradigm by seeking to exclude losers from the portfolio as opposed to trying to pick winners. Since XOUT launch 10/7/19 through 3/31/20, the XOUT Index outperformed the market by 5.1% by using this indexed methodology.
The ‘08 Financial Crisis is often raised as a benchmark for the current market turmoil, but the 1929 crash unleashing the Great Depression may be a more fitting proxy. Join us as we examine how the unprecedented market conditions are impacting gold.
The hurricane cone of market uncertainty radically expanded from where it had stood only moments early at Tuesday 9:59 am, with the emergency cuts raising previous obscure possibilities to the forefront. Examining the fallout provides an empirical illustration of gold’s role in the portfolio during market stress, illuminating not only surprises but outright oddities emanating from the market tumult.
The mathematical reality is that the venerable 60/40 was a sub-optimal investment in 2019—simply adding gold, and in any quantity, would have immediately improved portfolio efficiency. Even during a historic year for bonds, substituting gold for fixed income exposure in 2019, in any amount, automatically constructed a superior 60/40 portfolio. While sacrilegious to the extreme, these insights merely combine the 70 year old lessons of Modern Portfolio Theory with gold’s ability to buffet market volatility.