Founder & CEO
Why is today an important day for GraniteShares and its clients?
Today's a very important day because we’ve done two really incredible things. First, we rang the bell at the New York Stock Exchange for our two ETFs – tickers COMB and COMG. But also really it was more like the announcement of the launch of GraniteShares as a company.
Can you talk about GraniteShares’s origins and its mission as a firm?
I set up GraniteShares in early 2016 and we raised money successfully in terms of outside venture capital last year. Now we’ve been working really hard to get all of our necessary exchange and SEC filings and commissions and licenses and all of that which culminated in the listing on the New York Stock Exchange on May 22nd, of our first two ETFs, COMB and COMG.
Describe the strategy behind the COMB and COMG Funds?
COMB and COMG are two of the lowest cost ETFs that represent broad commodity exposure in the US. So COMB is benchmarked to the Bloomberg commodity index and is the lowest cost broad commodity ETF available today in the United States, at 25 basis points per annum. COMG is benchmarked to the S&P GSCI index, another broad commodity index and that is 35 basis points per annum.
What market exposure do your ETFs provide?
So they provide exposure to broad commodities. They’re benchmarked to two of the most famous commodity indices in the market. And the special benefit that investors get by investing in COMB or COMG is low cost broad commodity exposure with no K-1 filing.
What factors influence your ETF construction process?
So we look at a number of factors but what we really wanted to do here was innovate, disrupt and fundamentally reinvent commodity ETFs today in the United States. And we did that by taking a structure that wasn't previously available and used that to give investors access to two broad commodity indices at a low cost with no K-1's. And previously that hadn't been available.
What are the main indicators of the growth of the ETF industry?
Well the main indicators of growth, I think, are fairly straightforward. We had high-priced funds – typically mutual funds and hedge funds in the industry – and what investors are really looking for is low cost simple investing, and that's what ETFs are. The key benefits for people are: low cost, transparent and liquid – meaning that you can buy and sell shares on the Exchange every day.
ETFs have transitioned from a niche product to a mainstream investment in recent years. Why do you think that is?
ETF's have transitioned from a rather small and niche area of the market to being a truly multi-trillion dollar industry I think for a number of key reasons. But most importantly because of low cost. Everybody likes low cost and that was something that wasn't readily available in the investment industry for the everyday investor. So what ETFs have done is democratized investing –bringing low-cost, transparent and liquid access to multiple strategies all over the world.
How did it feel to ring the Opening Bell at the NYSE?
Ringing the opening bell was a wonderful experience. Just really phenomenal to be here with my own company, and Ring the Bell in front of friends and family and key partners—it's truly special.
I think that everything that's been done this morning to support us is phenomenal, so, couldn’t be happier.