What is the primary objective of the iShares Gold Trust (IAU)?

The primary objective of the iShares Gold Trust (IAU) is to reflect generally the performance of the price of gold, before payment of the Trust's expenses and liabilities. It is designed to offer investors a cost-effective way to gain exposure to the price movements of gold.

How is the value of the Trust's gold determined?

The Trustee values the gold held by the Trust on each business day using the LBMA Gold Price PM. If this price is not available, the LBMA Gold Price AM is used. These prices are determined through an electronic auction process administered by ICE Benchmark Administration.

What are the main expenses associated with holding IAU?

The primary recurring expense is the Sponsor's fee, which is accrued daily at an annualized rate of 0.25% of the Trust's net asset value. The Sponsor also covers other administrative and marketing expenses such as the Trustee's fee, Custodian's fee, listing fees, and audit fees, up to certain limits.

Are there any risks associated with investing in IAU?

Yes, investing in IAU carries risks primarily related to the price volatility of gold. These include risks associated with disruptions to the LBMA Gold Price determination, governmental decisions impacting gold prices, the lack of diversification as the Trust holds only gold, and potential divergence between the market price of shares and their net asset value. Additionally, the amount of gold represented by each share decreases over time due to sales to cover expenses.

IAU 10-K FY2020 Annual Report — Revenue, Net Income, EPS

Summary

The iShares Gold Trust (IAU) reported a significant increase in its net asset value for the year ended December 31, 2020, growing by 81.06% to $31.92 billion. This growth was driven by both an increase in outstanding Shares and a substantial rise in the LBMA Gold Price PM, which increased by 24.16% over the year. The Trust's objective is to reflect the performance of the price of gold, and it achieved this by holding physical gold bullion in trust, with each Share representing a fractional beneficial interest. The Sponsor, iShares Delaware Trust Sponsor LLC, covers most operational expenses, with the Sponsor's fee being the primary recurring cost, amounting to $65.44 million for 2020.

Key Highlights

1Net asset value grew by 81.06% to $31.92 billion for the year ended December 31, 2020.
2Outstanding Shares increased significantly from 1.21 billion to 1.77 billion.
3The LBMA Gold Price PM increased by 24.16% from $1,523.00 to $1,891.10.
4The Trust aims to reflect the performance of the price of gold, before expenses.
5The Sponsor's fee was $65.44 million for the year, representing 0.25% of average assets.
6Shares trade on NYSE Arca under the ticker symbol IAU.
7The Trust is a passive investment vehicle and does not actively manage its gold holdings.

Operating Expenses	$65.44M
Operating Income	-$65.44M
Net Income	$4.80B
EPS (Basic)	$6.24

ISHARES GOLD TRUST Annual Report, Year Ended Dec 31, 2020

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions