10-QPeriod: Q1 FY2024

SPDR GOLD TRUST Quarterly Report for Q1 Ended Dec 31, 2023

Filed February 8, 2024For Securities:GLD

Summary

SPDR Gold Trust (GLD) reported strong performance for the quarter ending December 31, 2023, driven by a significant increase in the fair value of its gold holdings. The Trust's net assets grew to $58.27 billion, up from $52.52 billion at the end of the previous quarter. This growth was primarily fueled by a substantial unrealized gain on its gold investments, reflecting the rising price of gold. The Net Asset Value (NAV) per Share increased to $191.12 from $173.51, indicating positive returns for shareholders. Operationally, the Trust saw a net increase in shares outstanding due to higher creation activity compared to redemptions, signifying investor demand. Total expenses remained stable and are consistent with the Trust's expense ratio, which is managed to track the performance of gold bullion. The Trust continues to hold 100% allocated gold bullion, with no exposure to derivative instruments, aligning with its objective of providing direct market exposure to gold prices.

Financial Highlights

10 data points
Beta

Net Income

$5.27B

EPS (Diluted)

$17.44

Total Assets

$58.46B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$55.75M
Net Income$5.27B
EPS (Basic)$17.44
Shares Outstanding (Basic)302.25M

Key Highlights

  • 1Net assets increased by approximately 10.95% to $58.27 billion as of December 31, 2023, from $52.52 billion as of September 30, 2023.
  • 2Net Asset Value (NAV) per Share rose significantly to $191.12 from $173.51 in the prior quarter, reflecting strong performance driven by gold price appreciation.
  • 3The Trust experienced a net increase in Shares outstanding, with 304.9 million Shares outstanding at December 31, 2023, compared to 302.7 million at September 30, 2023, indicating net inflows.
  • 4Total net income for the quarter was $5.27 billion, a substantial increase from $4.03 billion in the same period of the previous year, primarily due to gains on gold investments.
  • 5The Trust's investments consist entirely of gold bullion, valued at $58.46 billion at quarter-end, representing 100.33% of net assets.
  • 6Total expenses for the quarter were $55.75 million, consistent with the Trust's expense ratio of 0.40%.

Frequently Asked Questions

The primary driver of the SPDR Gold Trust's performance is the price of gold bullion. The Trust holds physical gold, and its value directly fluctuates with the market price of gold. The significant increase in net assets and NAV per share in this quarter is attributed to the appreciation of gold prices.

The Trust's recurring expenses, including the Sponsor's fee, Trustee fees, and Custodian fees, are managed through a daily accrual at an annual rate of 0.40% of the daily Net Asset Value (NAV). Gold is sold as needed to cover these expenses. For the three months ended December 31, 2023, total expenses were $55.75 million.

The Trust's primary market risk stems from fluctuations in the price of gold bullion. It does not engage in derivative transactions or invest in foreign currencies or long-term debt, thus minimizing other financial market risks. The value of the Shares is directly tied to the performance of the gold price, less expenses.

The creation and redemption process is how the SPDR Gold Trust interacts with the market to ensure its Share price tracks the NAV of its gold holdings. Authorized Participants can create new Shares by delivering gold to the Trust, or redeem Shares by receiving gold from the Trust. During this quarter, there were more creations than redemptions, indicating increased investor demand for the Trust's Shares.