How Does OUNZ Work?

How does OUNZ work

OUNZ offers investors an efficient way to invest in gold through an exchange traded fund that enables them to redeem their shares for physical delivery of bullion.

Novogradac & Company will remain vigilant as this legislation moves through the legislative process in 2023.

Each OUNZ share represents pro rata ownership of 0.967748 ounces of physical gold in the VanEck Merk Gold Trust.

What is OUNZ?

OUNZ stands out from its competition as an exchange-traded fund by holding physical bullion as opposed to paper certificates or digital assets. When redeeming their holdings, investors can receive physical gold bars or coins in increments of one troy ounce at redemption time. Furthermore, its fee structure makes OUNZ an attractive choice for investors looking to diversify their portfolio with non-equity investments.

What Is the Difference between OUNZ and AAAU? Both ETFs provide exposure to gold’s price; however, their operational structure and expense ratio vary greatly; OUNZ is an exchange-traded fund while AAAU is managed as a mutual fund, while in terms of expenses OUNZ boasts lower expense ratio (0.4% vs. 0.8%)

How Does OUNZ Differ From Other ETFs? Apart from its lower expense ratio, what distinguishes OUNZ from its counterparts is its unique offering to redeem shares for physical gold – this ensures its price tends to more closely reflect spot price (minus expenses), making it an attractive alternative to funds that only hold paper certificates or assets.

Physical delivery processes for ETFs can be intricate, so investors should familiarize themselves with them prior to investing. When redeeming shares for physical gold bullion, London Bars are delivered and stored separately by their custodian, never being mixed in with any depositor funds or assets stored with them by VanEck’s Custodial Service. Visit VanEck’s Investor Relations section on its website for further information about this process.

What Amount Does OUNZ Hold? OUNZ currently owns 35.5 tonnes of gold in total, including London Bars and products with at least 99.5% purity (such as cast and minted bars). Furthermore, they own gold bullion swap contracts.

OUNZ may not be suitable for every investor; fees and operating expenses could reduce returns while its investments in derivatives could increase risk of loss.

Raymond Banks Administrator
Raymond Banks is a published author in the commodity world. He has written extensively about gold and silver investments, and his work has been featured in some of the most respected financial journals in the industry. Raymond\\\'s expertise in the commodities market is highly sought-after, and he regularly delivers presentations on behalf of various investment firms. He is also a regular guest on financial news programmes, where he offers his expert insights into the latest commodity trends.

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