Grantor Trusts

Grantor Trusts

One of the most commonly used structures for commodity ETFs, a grantor trust is a physically backed trust that stores the physical commodity—say, gold or silver bars—in vaults while giving investors exposure to spot returns of that commodity. The biggest example of a grantor trust is the SPDR Gold Trust (GLD). By owning shares of GLD, ETF investors actually have claim to physical gold being vaulted in London.