Franklin Templeton Holdings Trust (NYSE: FGDL)

Franklin Templeton Holdings Trust is a Delaware statutory trust that offers a single series named the Franklin Responsibly Sourced Gold ETF. The trust issues shares that represent fractional ownership of gold bullion held in its allocated account. Its investment objective is for the share price to reflect the price of gold less the trust’s expenses.

The trust does not generate operating revenue from sales of goods or services. Its economic value changes with the market price of the gold it holds and any gains or losses accrue to shareholders. The sponsor receives a fee equal to 0.15 percent of the daily net asset value which it uses to cover the trust’s ordinary expenses. When expenses are paid the sponsor sells gold from the trust’s holdings.

The trust operates in the exchange traded fund industry that offers exposure to physical gold. Its main advantage is the focus on responsibly sourced gold which meets LBMA standards for bars refined after 2012. Competitors include other gold backed ETFs such as SPDR Gold Shares and iShares Gold Trust. The trust benefits from low expenses and a straightforward structure that holds only gold and cash.

The trust’s shares are bought and sold by individual investors and institutional investors through the NYSE Arca exchange. Authorized participants, which are typically large broker dealers, create and redeem shares in exchange for gold bullion.