10-QPeriod: Q3 FY2020

ISHARES GOLD TRUST Quarterly Report for Q3 Ended Sep 30, 2020

Filed November 5, 2020For Securities:IAU

Summary

The iShares Gold Trust (IAU) reported substantial growth in its net assets for the period ending September 30, 2020. Driven by a significant increase in the price of gold and a corresponding rise in outstanding Shares, the Trust's net assets grew by 78.29% from $17.6 billion at the start of the nine-month period to $31.4 billion by the end of September 2020. This growth reflects strong investor demand for gold as a safe-haven asset, particularly amidst global economic uncertainties. The Trust successfully issued a substantial number of new Shares while redemptions remained relatively lower, indicating positive net inflows into the Trust. The Trust's performance closely mirrors the movement of gold prices, with its Net Asset Value (NAV) per Share increasing by 23.63% over the nine months, aligning with a 23.89% rise in gold prices during the same period.

Financial Highlights

8 data points
Beta

Net Income

$1.68B

EPS (Diluted)

$2.00

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$19.08M
Operating Income-$19.08M
Net Income$1.68B
EPS (Basic)$2.00

Key Highlights

  • 1Total Net Assets increased by 78.29% to $31,430,082,428 as of September 30, 2020, from $17,628,525,082 as of December 31, 2019.
  • 2Outstanding Shares grew by approximately 44% to 1,746,150,000 as of September 30, 2020, from 1,211,150,000 as of December 31, 2019, indicating strong investor inflows.
  • 3The Net Asset Value (NAV) per Share increased by 23.63% to $18.00 as of September 30, 2020, from $14.56 as of December 31, 2019.
  • 4The Trust experienced a significant net unrealized appreciation on its gold bullion holdings, amounting to $4,530,607,690 for the nine months ended September 30, 2020.
  • 5Sponsor's fees for the nine months ended September 30, 2020, were $45,528,664, representing an annualized expense ratio of 0.25% of the average net assets.
  • 6The Trust's investment in gold bullion is valued at $31,436,617,757 as of September 30, 2020, with a cost basis of $24,368,528,904, highlighting substantial market appreciation.
  • 7The Trust reported no material legal proceedings or defaults upon senior securities during the period.

Frequently Asked Questions

The Trust's net assets saw substantial growth, increasing by 78.29% from $17.6 billion at the end of 2019 to $31.4 billion by September 30, 2020. This was driven by both an increase in the price of gold and a significant rise in the number of outstanding Shares.

The Trust's primary asset is gold bullion. Its fair value is determined daily based on the LBMA Gold Price PM (or LBMA Gold Price AM if PM is unavailable), a recognized benchmark in the gold market. As of September 30, 2020, the Trust held over 16.6 million ounces of gold bullion valued at approximately $31.4 billion.

The primary ongoing expense for the Trust is the Sponsor's fee, which accrues daily at an annualized rate of 0.25% of the net asset value. Other administrative expenses such as Trustee fees and Custodian fees are typically assumed by the Sponsor, as noted in the filing.

Individual investors cannot directly buy or sell Shares with the Trust. Instead, Shares are issued and redeemed in large aggregations (Baskets) only with Authorized Participants, who are registered broker-dealers. Individual investors can buy and sell Shares on secondary markets, such as the NYSE Arca, where they trade under the ticker symbol IAU.