01—Abstract
Summary
Summary of the 10-K filed February 20, 2024. Cited figures are marked; the original filing is the authoritative source.
iShares Gold Trust (IAU) provides investors with a cost-effective and accessible way to gain exposure to the price performance of gold.
The Trust holds physical gold bullion, with each Share representing a fractional undivided beneficial interest in the Trust's assets. The primary objective is to reflect the price of gold, less the Trust's expenses. For the year ended December 31, 2023, the Trust saw a net asset value increase of 1.03%a, largely driven by a 13.80% rise in the price of gold.
The number of outstanding Shares decreased, indicating more redemptions than creations during the year. The Trust's main expense is the Sponsor's fee, which was $67.77 millionb for 2023, representing 0.25% of average assets. The Trust is not actively managed and relies on the LBMA Gold Price for valuation.
02—Key points
Key Highlights
- The Trust's net asset value increased by 1.03% in 2023, reaching $26.42 billion, driven by a 13.80% increase in the price of gold.
- Outstanding Shares decreased from 760.7 million at the end of 2022 to 677.05 million at the end of 2023, indicating net redemptions.
- The Sponsor's fee remains the primary expense, totaling $67.77 million for 2023, consistent with the 0.25% annual rate on net asset value.
- The Trust's performance is directly tied to the price of gold, valued daily using the LBMA Gold Price PM.
- Shares are traded on NYSE Arca under the ticker symbol IAU, providing liquidity through secondary market trading.
- The Trust is a passive investment vehicle and does not engage in active management or trading strategies.
- Investors should be aware of risks associated with gold price volatility, potential discounts/premiums to NAV, and operational risks related to custodianship and benchmark pricing.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 20, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Operating Expenses | $67.77M$71.45M | −5.2% |
| Operating Income | -$67.77M-$71.45M | +5.2% |
| Net Income | $3.25B-$538.96M | +703.4% |
| EPS (Basic) | $4.42$-0.65 | +780.0% |
05—Questions
Frequently Asked Questions
How does iShares Gold Trust (IAU) aim to provide exposure to gold?
iShares Gold Trust (IAU) aims to reflect the performance of the price of gold by holding physical gold bullion. Each Share represents a fractional undivided beneficial interest in the net assets of the Trust, which primarily consist of gold held by its custodian.
What were the key financial results for IAU in 2023?
For the year ended December 31, 2023, the Trust's net asset value increased by 1.03% to $26.42 billion. This was primarily driven by a 13.80% increase in the price of gold. The number of outstanding shares decreased during the year due to more redemptions than creations.
What are the main expenses for IAU?
The primary recurring expense for iShares Gold Trust is the Sponsor's fee, which is accrued daily at an annualized rate of 0.25% of the Trust's net asset value. For 2023, this fee amounted to $67.77 million. The Sponsor also assumes certain administrative and marketing expenses.
How is the value of the gold held by the Trust determined?
The Trustee values the gold held by the Trust using the London Bullion Market Association (LBMA) Gold Price PM each business day. If this price is unavailable, the LBMA Gold Price AM is used. The Net Asset Value (NAV) is calculated by subtracting all accrued fees, expenses, and liabilities from the total value of the Trust's assets.
06—Continue