VanEck Merk Gold ETFOUNZ

The VanEck Merk Gold ETF (OUNZ) positions itself as a way to invest in physical gold, but the reality is a bit more complicated. The trust’s depositary agreement specifies that only gold bullion meeting the London Good Delivery Standards is accepted, which means no gold coins or bars under 99.5% purity. This strict criteria ensures that the fund holds high-quality gold, but it also adds layers of bureaucracy and fees.

OUNZ is structured as a grantor trust, meaning investors own a fraction of the physical gold held by the trust. The gold is stored in vaults, and the trust’s shares are designed to track the price of gold less the fund’s expenses. The trust’s name change from Merk Gold Trust to VanEck Merk Gold Trust in 2015 was a rebranding effort, but the underlying mechanics remain the same: investors buy shares in a trust that holds gold bars, not the bars themselves.

The fund’s expense ratio is 0.40%, which is relatively low for a gold ETF. However, the fine print reveals additional costs, such as the fees associated with the transaction and shipping agreement with Coins ‘N Things Inc. The agreement specifies that gold deliveries must use ‘reputable, nationally recognized delivery or armored carrier services,’ adding to the operational complexity and cost.

For those interested in tracking OUNZ’s market activity, the Nasdaq listing provides up-to-date information on the fund’s performance and trading volume. The SEC EDGAR filings offer a deeper dive into the trust’s operations, including the depositary trust agreement and amendments. The FINRA Fund Analyzer can also be used to compare OUNZ with other gold ETFs, providing a broader context for its performance and fees.