Summary
This 10-Q filing for iShares Gold Trust (IAU) for the period ending September 29, 2019, indicates a significant increase in the Trust's net assets, driven by a rise in the price of gold and substantial inflows of new shares. The Trust's investment in gold bullion increased from $11.55 billion at the end of 2018 to $16.36 billion by the end of the third quarter of 2019. This growth was primarily fueled by strong investor demand, evidenced by the creation of over 312 million new shares during the nine-month period. The net asset value per share also saw a healthy increase, rising from $12.28 at the start of the year to $14.20 by September 30, 2019. The Trust's primary expense is the Sponsor's fee, which is set at an annualized rate of 0.25% of the net asset value. Despite this fee, the Trust's performance closely tracked the price of gold, with a 15.64% total return on net asset value for the first nine months of 2019. Investors should note that the Trust is a passive investment vehicle that holds physical gold bullion, and its performance is directly tied to the fluctuations in the price of gold.
Financial Highlights
8 data points| Operating Expenses | $9.39M |
| Operating Income | -$9.39M |
| Net Income | $715.95M |
| EPS (Basic) | $1.36 |
Key Highlights
- 1The Trust's net assets increased significantly by 41.65% from $11.54 billion at December 31, 2018, to $16.35 billion at September 30, 2019.
- 2The net asset value (NAV) per Share increased from $12.28 at the beginning of the period to $14.20 at September 30, 2019.
- 3There was substantial investor demand, with 312.5 million Shares created and 101.4 million Shares redeemed during the nine months ended September 30, 2019, resulting in a net increase of 211.1 million Shares outstanding.
- 4The Trust's performance for the nine months ended September 30, 2019, was a total return of 15.64% based on net asset value, closely mirroring the appreciation in gold prices.
- 5The primary expense for the Trust is the Sponsor's fee, representing 0.25% of the net asset value, totaling $24.6 million for the nine months.
- 6The Trust's investment consists solely of gold bullion, valued at $16.36 billion as of September 30, 2019, with a cost of $14.23 billion, reflecting significant unrealized appreciation.
- 7Gold bullion is valued using the LBMA Gold Price PM, a Level 1 fair value input, indicating it is priced based on unadjusted quoted prices in active markets.