What is the primary asset held by iShares Gold Trust (IAU)?

The primary asset held by the iShares Gold Trust (IAU) is gold bullion. The Trust's objective is for the value of its Shares to reflect the price of gold owned by the Trust, less expenses and liabilities.

How does the Trust generate income?

The Trust generates net income primarily through realized gains on gold distributed for the redemption of Shares and from the sale of gold to cover operational expenses. These gains are then offset by the Sponsor's fees.

What are the main expenses for the iShares Gold Trust?

The main ongoing expense for the iShares Gold Trust is the Sponsor's fee, which accrues daily at an annualized rate. The Sponsor also assumes other administrative and marketing expenses, such as trustee fees, custodian fees, and listing fees, minimizing the direct expenses borne by the Trust.

How are Shares of the iShares Gold Trust created and redeemed?

Shares are created and redeemed continuously in aggregations called Baskets. This process is conducted through Authorized Participants, which are registered broker-dealers. Shares are issued and redeemed in exchange for physical gold bullion, not cash.

IAU 10-Q Quarterly Report Q1 FY2011 — Revenue, Net Income, EPS

Summary

The iShares Gold Trust (IAU) reported for the first quarter ending March 31, 2011, showing a significant increase in its net asset value and outstanding shares. The Trust's primary asset is gold bullion, and its performance is directly tied to the market price of gold. During the quarter, the Trust experienced an inflow of creations of Shares and an outflow of redemptions, leading to a net increase in outstanding Shares and, consequently, in the Trust's overall assets under management. Financially, the Trust generated net income primarily through gains on gold distributions for share redemptions and sales of gold to cover expenses, offset by sponsor's fees. The Sponsor continues to absorb most operational costs, minimizing the Trust's direct expenses. Investors should note that IAU is a passive investment vehicle, and its value directly fluctuates with the price of gold, making it susceptible to market risks associated with gold price volatility.

Financial Highlights

6 data points

Beta

Net Income

$96.02M

EPS (Diluted)

$0.50

Total Assets

$4.03B

Financial Statements

Beta

Operating Expenses	$3.23M
Net Income	$96.02M
EPS (Basic)	$0.50
Shares Outstanding (Basic)	193.80M

Key Highlights

1The Trust's net asset value increased by approximately 9.00% from $5.32 billion at the end of 2010 to $5.79 billion by the end of Q1 2011.
2Outstanding Shares increased by 14.6% to 412.2 million by March 31, 2011, driven by a net creation of Shares during the quarter.
3Net income for the quarter was $96.0 million, primarily from gains on gold distributed for share redemptions and gold sales to cover expenses.
4Sponsor's fees, the primary expense for the Trust, totaled $3.2 million for the quarter, representing approximately 0.06% of average assets.
5The fair value of gold bullion held by the Trust was $5.80 billion at the end of Q1 2011, up from $5.32 billion at the end of 2010.
6The London PM Fix price for gold increased by 2.38% during the quarter, closely mirroring the Trust's net asset value per Share performance.
7The Trust is a passive investment vehicle directly tracking the price of gold bullion, with no active trading or management strategies.

ISHARES GOLD TRUST Quarterly Report for Q1 Ended Mar 31, 2011

Summary

Financial Highlights

Key Highlights

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