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Ishares Gold Trust
Sure, here is some general information about Ishares Gold Trust, which trades on the stock symbol AU in the US stock exchange.
iShares Gold Trust is an exchange-traded fund (ETF) designed to track the price of gold. It gives investors exposure to the price of gold without holding physical gold, which can be expensive and difficult to store.
Here are some key points to note about iShares Gold Trust:
1. Net Asset Value (NAV): The NAV of iShares Gold Trust, like any other ETF, represents the value of one share of the fund. The net asset value is calculated daily and reflects the total value of the gold held by the trust, less any expenses, divided by the total number of shares outstanding.
2. Holdings: iShares Gold Trust holds physical gold bars that are stored in secure vaults. The gold bars are valued daily and are marked-to-market, meaning their value is adjusted daily to reflect changes in the price of gold.
3. Fees: iShares Gold Trust charges an annual management fee of 0.25%. This means that investors will incur a management fee of $0.25 for every $100 invested in the fund.
4. Liquidity: iShares Gold Trust is a liquid ETF, meaning investors can buy and sell shares throughout the day.
5. Taxation: iShares Gold Trust is structured as a grantor trust, which means that it is taxed as a pass-through entity. This means that investors will be taxed on their pro-rata share of the trust's income and capital gains, just as if they held physical gold.
6. Dividends: iShares Gold Trust does not pay dividends as it is a grantor trust.
7. Share Split: iShares Gold Trust, like many ETFs, has a share split mechanism that allows the fund managers to split an existing share into a specified number of new shares. This is done to keep the price of a share within a range that is attractive to individual investors.
8. Volume: The trading volume of iShares Gold Trust is relatively high, which reflects the strong investor interest in gold as a safe-haven asset. It can also make it easier for investors to buy and sell shares without significantly affecting the share price.
9. Average Spread: The average spread of iShares Gold Trust is typically narrow, at around $0.01 or less. This means that investors can typically buy and sell shares without incurring large trading costs.
10. Market Capitalization: The market capitalization of iShares Gold Trust is around $16 billion, making it one of the larger gold ETFs in the market. This can provide a level of liquidity and safety to investors.
11. Trading Hours: iShares Gold Trust trades on the NYSE Arca exchange, which has a modified opening and closing schedule. Trading hours for the fund reflect this modified schedule.
12. Creation/Redemption: iShares Gold Trust, like other ETFs, allows institutional investors (known as "Authorized Participants") to create or redeem shares in large blocks (typically 50,000 shares). This process helps ensure that the fund's share price remains close to the net asset value of its underlying assets.
13. Net Asset Value (NAV) Calculation: The NAV of iShares Gold Trust is calculated daily by subtracting the fund's liabilities from its assets and dividing that value by the number of shares outstanding. The net asset value is typically calculated after the close of the major gold markets to reflect the current price of gold.
14. Insider Ownership: iShares Gold Trust does not have any insider ownership, as it is an exchange-traded fund and not a company.
15. Performance: The performance of iShares Gold Trust is designed to reflect the performance of the price of gold, less the expenses associated with running the fund.
16. Holdings Breakdown: iShares Gold Trust has a unique structure that only holds physical gold bullion in the form of 400-troy ounce London Good Delivery gold bars. This means that investors can be confident that the fund is backed by physical gold, rather than derivatives or other.
Overall, iShares Gold Trust is a popular way for investors to gain exposure to the price of gold without holding physical gold, which can be expensive and difficult to store. The fund's trading volume, liquidity, and structure make it an attractive option for investors looking to diversify their portfolios or hedge against market volatility.