10-QPeriod: Q1 FY2024

ISHARES GOLD TRUST Quarterly Report for Q1 Ended Mar 31, 2024

Filed May 8, 2024For Securities:IAU

Summary

The iShares Gold Trust (IAU) reported an increase in its Net Asset Value (NAV) for the quarter ended March 31, 2024, driven primarily by a rise in the price of gold. The Trust's total assets increased to $27.56 billion, with the value of its gold bullion holdings appreciating significantly. Net assets saw a substantial increase of $1.87 billion resulting from operations, largely due to unrealized gains on gold bullion. Despite the positive operational results, the Trust experienced a net decrease in outstanding shares as redemptions (24.05 million shares) outpaced creations (4.95 million shares). The Trust maintained its passive investment strategy, aiming to mirror the performance of gold prices before expenses. Expenses remain minimal, primarily consisting of the Sponsor's fee, which is set at an annualized rate of 0.25% of NAV.

Financial Highlights

6 data points
Beta

Net Income

$1.87B

EPS (Diluted)

$2.81

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$16.21M
Operating Income-$16.21M
Net Income$1.87B
EPS (Basic)$2.81

Key Highlights

  • 1The Trust's Net Asset Value (NAV) per Share increased from $39.03 at December 31, 2023, to $41.88 at March 31, 2024, a gain of 7.30%.
  • 2Total assets grew to $27.56 billion as of March 31, 2024, up from $26.43 billion at December 31, 2023, driven by the appreciation of gold bullion holdings.
  • 3The Trust reported a net increase in net assets from operations of $1.87 billion for the three months ended March 31, 2024.
  • 4Net realized and unrealized gains on gold bullion amounted to $1.89 billion for the quarter.
  • 5The number of outstanding Shares decreased by 19.1 million, from 677.05 million to 657.95 million, as redemptions exceeded creations.
  • 6Sponsor's fees for the quarter were $16.2 million, representing an annualized expense ratio of 0.25% of average assets.
  • 7The Trust's investment in gold bullion is valued using the LBMA Gold Price PM and is categorized as a Level 1 asset in the fair value hierarchy.

Frequently Asked Questions

The iShares Gold Trust (IAU) experienced a positive performance during the first quarter of 2024. The Net Asset Value (NAV) per Share increased by 7.30%, reaching $41.88 by March 31, 2024. This growth was primarily driven by an increase in the price of gold bullion, which is the Trust's sole holding.

The primary driver of the Trust's Net Asset Value is the market price of gold bullion. For the quarter ended March 31, 2024, the appreciation of gold led to significant unrealized gains, contributing $1.67 billion to the net increase in assets. Realized gains from selling gold to cover expenses and distributing gold for share redemptions also contributed positively.

The number of Shares outstanding for the iShares Gold Trust decreased during the quarter ended March 31, 2024. A total of 24.05 million Shares were redeemed, while only 4.95 million Shares were created, resulting in a net decrease of 19.1 million Shares outstanding.

The primary ongoing expense for the iShares Gold Trust is the Sponsor's fee, which is accrued daily at an annualized rate of 0.25% of the Trust's net asset value. For the first quarter of 2024, these fees amounted to $16.2 million. The Sponsor also assumes other administrative and marketing expenses, keeping the direct costs to the Trust minimal.