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

The primary asset of the iShares COMEX Gold Trust (IAU) is gold bullion held by a custodian. The value of the Trust's shares is designed to reflect the price of this gold bullion, less expenses.

How does the Trust generate income or profit?

The Trust is a passive investment vehicle and does not actively seek to generate profit. Its 'income' primarily comes from the appreciation of the gold bullion it holds and gains realized from distributing gold to cover expenses or redeem shares. Its performance is directly tied to the market price of gold.

What are the main expenses of the Trust?

The main expense of the Trust is the Sponsor's fee, which accrues daily at an annualized rate of 0.40% of the adjusted daily net asset value. Other administrative and operational costs are typically covered by the Sponsor.

How can an investor buy or sell shares of IAU?

Individual investors cannot buy or redeem shares directly with the Trust. Shares of IAU trade on the AMEX, similar to stocks. Investors can buy and sell shares through a registered broker-dealer during market hours.

IAU 10-Q Quarterly Report Q1 FY2008 — Revenue, Net Income, EPS

Summary

The iShares COMEX Gold Trust (IAU) reported its quarterly results for the period ending March 31, 2008. The Trust's primary asset is gold bullion, valued at $1.31 billion as of March 31, 2008, an increase from $1.00 billion at the end of 2007. This appreciation is driven by a rise in the market value of gold, as reflected in the COMEX Spot Settlement Price, which increased by 10% during the quarter. The Trust experienced significant activity in its redeemable capital shares, with an increase in both issuances and redemptions. Financially, the Trust reported a net income of $28.3 million for the quarter, a substantial increase from $2.1 million in the same period of the previous year. This was primarily due to a large gain on gold distributed for share redemptions. The Trust's expenses, mainly Sponsor's fees, were $1.78 million for the quarter. Investors should note that the Trust is a passive investment vehicle designed to track the price of gold, and its performance is directly tied to the fluctuations in the gold market.

Key Highlights

1Gold bullion inventory increased significantly to $1.31 billion as of March 31, 2008, up from $1.00 billion at the end of 2007, reflecting the rise in gold prices.
2Net income for the quarter ended March 31, 2008, was $28.3 million, a substantial increase compared to $2.1 million in the prior year's quarter.
3The Trust's redeemable capital shares saw increased activity, with issuances of 3.9 million shares and redemptions of 1 million shares during the quarter.
4The net asset value per share increased by 10% from $82.52 to $90.47 during the quarter, aligning with the 10% rise in the COMEX Spot Settlement Price of gold.
5Sponsor's fees were the primary expense, totaling $1.78 million for the quarter.
6The Trust operates as a passive investment vehicle with its performance directly linked to the price of gold.
7The Trust reported a Shareholders' Equity (deficit) of ($578.3 million) as of March 31, 2008, indicating accumulated losses, primarily due to adjustments in the redemption value of capital shares.

ISHARES GOLD TRUST Quarterly Report for Q1 Ended Mar 31, 2008

Summary

Key Highlights

Frequently Asked Questions