10-KPeriod: FY2017

ISHARES GOLD TRUST Annual Report, Year Ended Dec 31, 2017

Filed February 28, 2018For Securities:IAU

Summary

ISHARES GOLD TRUST (IAU) reported its annual results for the fiscal year ending December 31, 2017. The Trust, which aims to reflect the performance of the price of gold, saw its net asset value increase by 38.81% to $10,147,507,137, driven by a rise in gold prices and an increase in outstanding shares. The Trust's performance is closely tied to the LBMA Gold Price PM, with the net asset value per share experiencing growth corresponding to the 11.85% increase in gold prices during the year. The Trust operates as a passive investment vehicle, with its primary expense being the Sponsor's fee, which was $21,630,631 for 2017. The Sponsor, iShares Delaware Trust Sponsor LLC, an indirect subsidiary of BlackRock, Inc., covers various administrative and marketing expenses. The Trust does not actively manage its gold holdings and does not engage in activities to profit from price changes. Investors should be aware that the value of the Shares will fluctuate with the price of gold, and the gradual decrease in the amount of gold represented by each Share due to expenses can impact overall returns if not offset by gold price appreciation.

Financial Highlights

8 data points
Beta

Net Income

$881.86M

EPS (Diluted)

$2.46

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$21.63M
Operating Income-$21.63M
Net Income$881.86M
EPS (Basic)$2.46

Key Highlights

  • 1The iShares Gold Trust (IAU) experienced significant growth in its net asset value, increasing by 38.81% to $10,147,507,137 by the end of 2017.
  • 2The increase in NAV was largely driven by a rise in gold prices, with the LBMA Gold Price PM increasing by 11.85% during the year.
  • 3Outstanding shares grew from 655,000,000 at the end of 2016 to 814,900,000 at the end of 2017, indicating increased investor demand.
  • 4The primary expense for the Trust is the Sponsor's fee, which was $21,630,631 for the fiscal year 2017, representing 0.25% of average assets.
  • 5The Trust's objective is to mirror the performance of gold prices, operating as a passive investment vehicle without active management.
  • 6Shares of the Trust trade on NYSE Arca under the ticker symbol IAU, offering investors a cost-effective way to invest in physical gold.
  • 7The Trust is structured as a grantor trust for tax purposes, meaning income and expenses flow through to shareholders.

Frequently Asked Questions

The primary objective of the iShares Gold Trust (IAU) is to reflect generally the performance of the price of gold, before the payment of the Trust's expenses and liabilities. It aims to provide investors with a cost-effective and accessible way to invest in gold through the securities market.

The main ordinary recurring expense for the iShares Gold Trust is the Sponsor's fee, which is accrued daily at an annualized rate of 0.25% of the net asset value. The Sponsor, iShares Delaware Trust Sponsor LLC, also assumes certain other administrative and marketing expenses.

The Net Asset Value (NAV) of IAU shares is determined daily based on the LBMA Gold Price PM. Shares trade on NYSE Arca, and their market price can fluctuate above or below their NAV due to market supply and demand. Factors like non-concurrent trading hours between gold markets and the stock exchange can widen the premium or discount. Additionally, the amount of gold represented by each share decreases over time due to expenses, requiring gold price appreciation to offset this dilution.

No, the iShares Gold Trust is a passive investment vehicle. It does not actively manage its gold holdings, meaning it does not buy gold at low prices or sell at high prices, nor does it employ hedging techniques. This means that any losses sustained by the Trust due to gold price fluctuations or other factors will directly impact the value of the Shares.