10-QPeriod: Q2 FY2023

SPDR GOLD TRUST Quarterly Report for Q2 Ended Mar 31, 2023

Filed May 9, 2023For Securities:GLD

Summary

SPDR Gold Trust (GLD) reported strong performance for the six months ended March 31, 2023, driven by a significant increase in the fair value of its gold holdings. Net assets grew substantially to $59.05 billion from $50.49 billion at the end of the prior fiscal year. This growth was primarily fueled by a $8.46 billion unrealized gain on its gold investments, reflecting a positive trend in gold prices during the period. Despite managing expenses, the Trust's investment objective remains to mirror the price of gold, less operational costs, which were approximately 0.40% of average net assets. During the six-month period, the Trust saw net redemptions in terms of share volume, with 3.4 million fewer shares outstanding. However, the value of these redemptions was less than the value of creations, indicating an overall increase in the net asset value per share to $184.01 from $155.69. Investors should note that the Trust's performance is directly tied to the fluctuations in the global gold market, and while it offers a straightforward way to gain exposure to gold, it does not involve active management or hedging strategies.

Financial Highlights

10 data points
Beta

Net Income

$4.82B

EPS (Diluted)

$15.21

Total Assets

$59.16B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$54.88M
Net Income$4.82B
EPS (Basic)$15.21
Shares Outstanding (Basic)317.03M

Key Highlights

  • 1Net assets increased significantly to $59.05 billion as of March 31, 2023, up from $50.49 billion at September 30, 2022.
  • 2The primary driver of net asset growth was a substantial unrealized gain on investments in gold, totaling $8.46 billion for the six months ended March 31, 2023.
  • 3Net asset value per Share increased to $184.01 from $155.69 over the six-month period, reflecting the appreciation of gold prices.
  • 4For the six months ended March 31, 2023, the Trust experienced net redemptions in terms of share volume (3.4 million shares), but the net change in value of creations and redemptions was negative $295.4 million.
  • 5Total expenses remained consistent at 0.40% of average net assets for the period, aligning with the Trust's strategy to pass through operational costs.
  • 6The Trust holds 100% of its assets in allocated gold bullion, valued at fair value using Level 1 inputs (quoted prices in active markets).
  • 7No cash balances were held by the Trust at March 31, 2023, as gold is sold to cover operational expenses.

Frequently Asked Questions

The primary driver of GLD's performance is the price of gold bullion. The Trust's objective is to reflect the performance of gold prices, less the Trust's expenses. Significant unrealized gains or losses on its gold holdings directly impact the net asset value of the Trust.

The Trust's expenses, including sponsor fees, trustee fees, and custodian fees, are managed by selling a portion of the Trust's gold holdings. The Trust aims to sell the minimum amount of gold necessary to cover these expenses, and these are reported as 'net realized gain/(loss) from investment in gold sold to pay expenses'.

The net asset value per share as of March 31, 2023, was $184.01, an increase from $155.69 as of September 30, 2022. This increase is a direct result of the appreciation in the market value of the gold held by the Trust.

No, the SPDR Gold Trust does not actively manage the gold it holds. The Trustee does not engage in hedging techniques or attempt to profit from price fluctuations. The Trust's goal is to provide passive exposure to the price of gold.