10-KPeriod: FY2022

ISHARES GOLD TRUST Annual Report, Year Ended Dec 31, 2022

Filed February 23, 2023For Securities:IAU

Summary

The iShares Gold Trust (IAU) reported a decrease in its net asset value (NAV) from $28,723,023,637 at the end of 2021 to $26,154,892,134 at the end of 2022. This decline was primarily driven by a reduction in outstanding shares, which fell from 829,750,000 to 760,700,000, indicating more redemptions than creations during the year. The trust's objective is to mirror the performance of gold prices, and its assets primarily consist of physical gold held by its custodian. The Sponsor's fee remains the primary expense, amounting to $71,451,301 for 2022, representing an annual rate of 0.25% of the NAV. While the trust aims to track gold prices, investors should be aware that shares can trade at a premium or discount to their NAV due to market supply and demand and the timing of global gold market closures relative to NYSE Arca trading hours. The filing also highlights various risks, including disruptions to the LBMA Gold Price benchmark, potential impacts of governmental decisions on gold prices, the volatility inherent in a single-commodity investment, and the ongoing dilution of gold backing per share due to expenses. Investors should also note that the trust is not registered as an investment company, and shareholders do not have the protections afforded by the Investment Company Act of 1940.

Financial Highlights

8 data points
Beta

Net Income

-$538.96M

EPS (Diluted)

$-0.65

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$71.45M
Operating Income-$71.45M
Net Income-$538.96M
EPS (Basic)$-0.65

Key Highlights

  • 1Net Asset Value (NAV) decreased by 8.94% from $28.72 billion in 2021 to $26.15 billion in 2022.
  • 2Outstanding Shares decreased by approximately 8.2% from 829,750,000 in 2021 to 760,700,000 in 2022.
  • 3The Sponsor's fee was $71,451,301 for the year ended December 31, 2022, an annual rate of 0.25% of the Trust's average assets.
  • 4The Trust's objective is to reflect the performance of the price of gold, before payment of expenses.
  • 5Shares may trade at a premium or discount to their Net Asset Value (NAV) due to market supply and demand dynamics.
  • 6The Trust holds physical gold bullion as its primary asset, stored by a custodian.
  • 7The filing details significant risks, including potential disruptions to gold price benchmarks and governmental policy impacts on gold prices.

Frequently Asked Questions

The primary purpose of the iShares Gold Trust is to hold physical gold bullion and to reflect generally the performance of the price of gold, less the Trust's expenses and liabilities. It aims to provide investors with a cost-effective and convenient way to gain exposure to the gold market.

The Trust does not generate revenue in the traditional sense. It passively holds physical gold. Its value fluctuates with the market price of gold. The Trust incurs expenses, primarily the Sponsor's fee, which are paid by selling a portion of the Trust's gold holdings. It is not actively managed to profit from price changes.

Key risks include the volatility of gold prices, potential disruptions to the LBMA Gold Price benchmark used for valuation, the fact that shares may trade at a premium or discount to their Net Asset Value (NAV), the inherent risk of investing in a single commodity (lack of diversification), and the gradual decrease in the amount of gold backing each share over time due to expenses. Additionally, the Trust is not regulated as an investment company, meaning investors do not have the same protections as they would with registered investment companies.

The Sponsor organizes and promotes the Trust and pays for certain administrative and marketing expenses in exchange for a fee. The Trustee oversees the Trust's operations, including valuing the gold, calculating the NAV, and managing the issuance and redemption of Shares in exchange for gold. The Custodian holds the physical gold bullion on behalf of the Trust.