28 www.resourceworld.com
A U G U S T / S E P T E M B E R 2 0 1 9
SPECIALTY MINING AND BULLION FUNDS
The RBC iShares Global Base Metals ETF
[XBM-TSX] tracks the TSX Base Metals
Index and has a management expense ratio
of 0.62%.
In the US, the SPDR S&P Global
Natural Resource ETF [GNR-NYSE
American] holds the 90 largest resource
companies including both mining and oil
companies. This includes BHP Billiton,
Glencore and Exxon. Management
Expense is 0.4%.
A specialty mining fund that covers
battery metals is the Global X Lithium
& Battery Metals ETF [LIT-NYSE Arca
Exchange]. It holds companies involved in
lithium mining, refining and battery pro
-
duction. Management Expense is 0.75%.
To hold gold bullion through an
Exchange Traded Product, there are gold
deposit receipts from the Canadian Mint.
These have an annual expense of 0.35%.
To hold both gold and silver bullion,
Sprott offers the Sprott Physical Gold and
Silver Trust [CEF-TSX] with a management
expense of 0.4%.
FUTURE TRENDS
As ETFs have become increasingly popular,
the mutual fund industry has responded to
the competition by launching its own ETFs,
and offering mutual funds with lower fees
closer to those offered by ETFs. I expect
that these trends will continue and see that
ETFs will continue to grow in popularity.
A WORD ON MANAGEMENT FEES
AND EXPENSES
Management fees are direct charges by the
fund managers and are deducted from the
value of the ETF. Management Expenses
and Expense Ratios are broader terms
which include the management fees and
other fund administration costs expressed
as a percentage of fund assets.
THE BOTTOM LINE
For investors seeking to lower risks and
expenses along with simplifying their
investment life, ETFs are definitely worth
considering.
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INVESTMENT
