10-Q: abrdn Gold ETF Trust Reports Increase in Net Asset Value for Q2 2024

abrdn Gold ETF Trust's NAV increased by 6.89% in Q2 2024, driven by rising gold prices and an increase in outstanding shares.

Summary

• abrdn Gold ETF Trust's NAV increased to $3,142.44 million as of June 30, 2024, from $2,940.00 million at March 31, 2024.
• This represents a 6.89% increase for the quarter.
• The increase was primarily due to a 5.26% rise in the price of gold, from $2,214.35 to $2,330.90 per ounce.
• Outstanding shares increased from 138.9 million to 141.1 million during the quarter, with 3.1 million shares created and 0.9 million shares redeemed.
• The NAV per share increased by 5.20% from $21.17 to $22.27.
• For the six months ended June 30, 2024, the NAV increased by 11.19% from $2,826.26 million at December 31, 2023.
• The price of gold rose 12.15% during the first six months of 2024.
• The number of outstanding shares decreased from 142.2 million to 141.1 million during the same period.
• The NAV per share increased by 12.02% from $19.88 to $22.27.
• The Sponsor's Fee for the quarter was $1.32 million, and for the six months, it was $2.50 million, representing 0.17% of the Trust's ANAV on an annualized basis.

Sentiment

Score: 7

Explanation: The sentiment is positive due to the increase in NAV and NAV per share, driven by rising gold prices. The consistent expense ratio is also a positive factor.

Positives

• The Trust experienced a significant increase in NAV during both the quarter and the first six months of 2024.
• The increase in the price of gold positively impacted the Trust's performance.
• The Trust maintains a consistent expense ratio, with the Sponsor's Fee at 0.17% of ANAV.

Negatives

• The Sponsor's Fee reduces the NAV per Share increase compared to the increase in the price of gold.

Risks

• The Trust's performance is heavily reliant on the price of gold, which is subject to various market factors.
• Fluctuations in global gold supply and demand, inflation expectations, currency exchange rates, and geopolitical events could impact the price of gold.
• There is no assurance that gold will maintain its long-term value.

Future Outlook

The discussion and analysis may contain forward-looking statements regarding the Trust's financial condition, operations, future performance, and business, based on the Sponsor's assumptions and analyses of historical trends, current conditions, and expected future developments.

Industry Context

This announcement reflects the performance of a gold-backed ETF, which is directly tied to the price of gold and market sentiment towards precious metals as a safe-haven asset.

Comparison to Industry Standards

• Comparable gold ETFs include GLD (SPDR Gold Trust) and IAU (iShares Gold Trust).
• The expense ratio of abrdn Gold ETF Trust (0.17%) is competitive with other gold ETFs.
• Performance is directly correlated to the price of gold, so comparisons should be made based on tracking error and expense ratios.

Related Party Transactions

• The Sponsor and the Trustee are considered related parties to the Trust.
• The Trustee and the Custodian and their affiliates may from time to time act as Authorized Participants and purchase or sell Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion.
• The Trustees and Custodians fees are paid by the Sponsor and are not separate expenses of the Trust.

Stakeholder Impact

• Shareholders benefit from the increased NAV and NAV per share.
• Authorized Participants engage in creation and redemption activities.
• The Sponsor receives fees for its services.

Key Dates

Keywords

abrdn Gold ETF Trust, Gold ETF, NAV, Gold price, Shares, Sponsor's Fee, Financial statements, Investment, ETF