Summary
iShares Gold Trust (IAU) reported significant growth in its net assets for the nine months ended September 30, 2016, driven by a substantial increase in the price of gold and a corresponding rise in outstanding Shares. The Trust's net asset value grew by approximately 85% to $9.64 billion, with net asset value per Share increasing by 24.29% to $12.74. This performance was primarily fueled by a 24.50% increase in the LBMA Gold Price PM, reflecting a strong market for gold during the period. The Trust saw substantial inflows of gold bullion through the creation of new Shares, indicating investor demand for gold exposure via the IAU ETF. Despite a net investment loss due to sponsor fees, the significant unrealized gains from the appreciation of gold bullion more than offset these costs, resulting in a substantial net increase in net assets from operations.
Financial Highlights
9 data points| Operating Expenses | $5.95M |
| Operating Income | -$5.95M |
| Net Income | -$6.54M |
| EPS (Basic) | $-0.02 |
| Shares Outstanding (Basic) | 369.28M |
Key Highlights
- 1Net assets increased by approximately 85% to $9.64 billion as of September 30, 2016, from $5.21 billion at the end of 2015.
- 2Net asset value per Share grew by 24.29% to $12.74 for the nine months ended September 30, 2016.
- 3The primary driver of this growth was a 24.50% increase in the price of gold (LBMA Gold Price PM).
- 4Outstanding Shares increased significantly from 508.1 million at year-end 2015 to 756.25 million by September 30, 2016, indicating strong investor inflows.
- 5The Trust generated a substantial unrealized gain on its gold bullion holdings of $1.44 billion for the nine months ended September 30, 2016.
- 6Sponsor's fees were $15.03 million for the nine months ended September 30, 2016, representing an annualized expense ratio of 0.25% of average net assets.
- 7The Trust holds all its assets in gold bullion, exposing investors directly to the price fluctuations of gold.