10-QPeriod: Q1 FY2023

ISHARES GOLD TRUST Quarterly Report for Q1 Ended Mar 31, 2023

Filed May 5, 2023For Securities:IAU

Summary

This 10-Q filing for the iShares Gold Trust (IAU) for the quarter ended March 31, 2023, reveals a significant increase in the Trust's net assets, driven by a rise in the market price of gold. The Trust's net asset value (NAV) grew by 8.11% during the quarter, from $26.15 billion to $28.28 billion, reflecting a 9.23% increase in the LBMA Gold Price. This performance, while positive, was partially offset by a net decrease in the number of outstanding Shares, as redemptions exceeded creations. Investors should note that while the Trust aims to mirror the performance of gold prices, a small Sponsor's fee is deducted, slightly dampening the overall return compared to the raw commodity price. The Trust's primary asset is gold bullion, valued at approximately $28.28 billion as of March 31, 2023. The Trust operates as a passive investment vehicle, and its liquidity is directly tied to the market price of gold. All operations and financial reporting are conducted in accordance with U.S. GAAP.

Financial Highlights

6 data points
Beta

Net Income

$2.35B

EPS (Diluted)

$3.11

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$16.71M
Operating Income-$16.71M
Net Income$2.35B
EPS (Basic)$3.11

Key Highlights

  • 1Net assets increased by 8.11% to $28.28 billion as of March 31, 2023, up from $26.15 billion as of December 31, 2022.
  • 2The net asset value (NAV) per Share increased to $37.53 from $34.38 during the quarter, a 9.16% rise, closely tracking the increase in gold prices.
  • 3Gold bullion, the Trust's sole asset, was valued at $28.28 billion at quarter-end, representing a substantial unrealized appreciation of $2.21 billion.
  • 4The Trust experienced a net decrease in outstanding Shares, with 18.7 million Shares issued and 26.05 million Shares redeemed during the quarter.
  • 5Sponsor's fees for the quarter amounted to $16.7 million, representing an annualized rate of 0.25% of the Trust's average net assets.
  • 6The Trust's operations resulted in a net increase in net assets of $2.35 billion for the three months ended March 31, 2023.
  • 7The Trust holds its gold bullion at fair value, which is categorized as Level 1 within the fair value hierarchy, indicating valuation based on unadjusted quoted prices in active markets.

Frequently Asked Questions

The primary driver of the iShares Gold Trust's performance is the market price of gold. The Trust aims to reflect the performance of gold bullion before expenses.

The main expense incurred by the Trust is the Sponsor's fee, which is accrued daily at an annualized rate of 0.25% of the Trust's net asset value. Other administrative and operational costs are generally assumed by the Sponsor.

Individual investors cannot directly buy or sell Shares with the Trust. They must transact through registered broker-dealers that are Authorized Participants. These participants can create or redeem Shares in large aggregations (50,000 Shares or more) by exchanging gold bullion for Shares or vice versa.

A net decrease in Shares issued and outstanding indicates that more Shares were redeemed by investors and Authorized Participants than were created during the period. In this quarter, redemptions exceeded creations by 7.35 million Shares, which is a consequence of investor demand and market dynamics.