10-QPeriod: Q1 FY2022

ISHARES GOLD TRUST Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 6, 2022For Securities:IAU

Summary

The iShares Gold Trust (IAU) reported a strong first quarter of 2022, with its Net Asset Value (NAV) increasing by 12.28% from $28.72 billion to $32.25 billion between December 31, 2021, and March 31, 2022. This growth was primarily driven by an increase in the price of gold, which rose by 6.71% during the quarter, alongside a significant increase in outstanding shares, indicating robust investor demand. The Trust saw a substantial net increase in its assets resulting from operations, largely due to a significant unrealized gain on its gold bullion holdings. For investors, the report highlights the direct correlation between the Trust's performance and the price of gold. The increase in NAV and share count suggests positive investor sentiment towards gold as an asset class during the quarter. While the Trust generated a net investment loss due to sponsor fees, the substantial unrealized appreciation in the value of its gold holdings more than offset this. The Trust continues to operate as a passive investment vehicle, with its primary expense being the sponsor's fee, which remains consistent.

Financial Highlights

8 data points
Beta

Net Income

$1.93B

EPS (Diluted)

$2.28

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$18.51M
Operating Income-$18.51M
Net Income$1.93B
EPS (Basic)$2.28

Key Highlights

  • 1IAU's Net Asset Value (NAV) grew by 12.28% to $32.25 billion as of March 31, 2022, up from $28.72 billion at December 31, 2021.
  • 2The primary driver for NAV growth was a 6.71% increase in the price of gold during the quarter.
  • 3Outstanding shares increased significantly from 829,750,000 to 873,600,000, reflecting strong investor inflows through share creations.
  • 4The Trust experienced a substantial net increase in net assets from operations of $1.925 billion, mainly driven by an $1.882 billion unrealized gain on gold bullion.
  • 5Sponsor's fees remained stable at $18.5 million for the quarter, representing an annualized expense ratio of 0.25% on average assets.
  • 6The NAV per share increased from $34.62 to $36.92, a gain of 6.64% for the quarter.
  • 7The Trust holds approximately 16.61 million ounces of gold bullion, valued at $32.26 billion as of March 31, 2022.

Frequently Asked Questions

The primary driver of IAU's performance in the first quarter of 2022 was the increase in the market price of gold. The price of gold rose by 6.71%, leading to a significant unrealized gain on the Trust's gold bullion holdings and a corresponding increase in its Net Asset Value (NAV).

Investor demand for IAU increased significantly during the first quarter of 2022. This is evidenced by the substantial increase in the number of outstanding shares, which grew from 829,750,000 at the end of 2021 to 873,600,000 by March 31, 2022, indicating strong inflows through share creations.

The main expense for the iShares Gold Trust is the Sponsor's fee, which accrues daily at an annualized rate of 0.25% of the Trust's net asset value. Other administrative expenses are generally covered by the Sponsor, according to the filing.

The NAV per share is calculated by dividing the total net assets of the Trust (the fair value of gold bullion minus liabilities, primarily sponsor fees) by the total number of shares outstanding. This is typically done daily after market close.