10-KPeriod: FY2020

SPDR GOLD TRUST Annual Report, Year Ended Sep 30, 2020

Filed November 24, 2020For Securities:GLD

Summary

SPDR Gold Trust (GLD) reported its annual results for the period ending September 29, 2020. As an investment trust, GLD's primary objective is to reflect the performance of the price of gold bullion, less expenses. During the fiscal year ended September 30, 2020, the Trust reported a significant net income of $13,083,928,000, primarily driven by a substantial unrealized appreciation on its gold holdings, reflecting the strong performance of gold prices during the period. The Trust holds physical gold bullion, with its net assets valued at approximately $76.95 billion as of September 30, 2020. Key operational aspects include the creation and redemption of Shares by Authorized Participants in exchange for physical gold, and the Trust's reliance on the LBMA Gold Price PM for valuation. Expenses are paid by selling gold, which can impact the amount of gold backing each Share over time. The filing also highlights various risks associated with gold price volatility, custodial arrangements, and market infrastructure, emphasizing that GLD is a passive investment vehicle. Investors should note the tax implications, particularly the 28% maximum long-term capital gains tax rate for individuals on gold-related gains.

Financial Highlights

9 data points
Beta

Net Income

$13.08B

EPS (Diluted)

$36.89

Total Assets

$76.98B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$225.63M
Net Income$13.08B
EPS (Basic)$36.89
Shares Outstanding (Basic)354.70M

Key Highlights

  • 1The Trust's net income for the year ended September 30, 2020, was $13,083,928,000, significantly driven by the appreciation of gold prices.
  • 2As of September 30, 2020, the Trust held 40,796,015 ounces of allocated gold with a market value of approximately $76.98 billion.
  • 3The Trust's primary expense is the Sponsor's fee, which accrues daily at an annual rate of 0.40% of the daily Net Asset Value (NAV). For the year ended September 30, 2020, sponsor fees totaled $225,630,000.
  • 4Shares are created and redeemed in Baskets by Authorized Participants who exchange physical gold for Shares and vice versa.
  • 5The Net Asset Value (NAV) of the Trust is determined daily using the LBMA Gold Price PM.
  • 6The Trust does not hold any derivative instruments; its assets consist solely of allocated gold bullion and cash for expenses.
  • 7Investors are cautioned about risks including gold price volatility, potential issues with gold custody, and the Trust's passive investment strategy.

Frequently Asked Questions

The investment objective of the Trust is for its Shares (SPDR® Gold Shares) to reflect the performance of the price of gold bullion, less the Trust's expenses.

Investors gain exposure by purchasing Shares on a stock exchange, such as NYSE Arca. These Shares represent units of fractional undivided beneficial interest in the gold held by the Trust. It offers a convenient way to invest in gold without the logistical challenges of direct physical ownership.

The Trust pays its expenses by selling portions of the gold it holds. This is done on an as-needed basis. As a result, the amount of gold backing each Share gradually decreases over time, irrespective of the gold price.

Authorized Participants are typically large financial institutions that have entered into agreements with the Trust. They are the only entities that can create or redeem Baskets of Shares, which involves exchanging physical gold for Shares or vice versa. They then sell these Shares to individual investors in the secondary market.

Key risks include the volatility of the price of gold, potential issues with the custody and safekeeping of the physical gold, the risk that the Trust sells gold at low prices to cover expenses, and the fact that the Trust is a passive investment vehicle without active management to mitigate losses. Additionally, the Shares may trade at a premium or discount to their Net Asset Value.