10-Q: Franklin Gold ETF NAV Rises on Gold Price Gains

The Franklin Responsibly Sourced Gold ETF reported a net asset value increase driven by gold price appreciation, though expenses slightly tempered gains.

Summary

• The Franklin Responsibly Sourced Gold ETF (FGDL) reported its financial results for the quarter ended September 30, 2026.
• The fund's Net Asset Value (NAV) per share increased from $53.59 to $55.57 during the quarter, a rise of 3.69%.
• This increase in NAV per share is primarily attributed to a 3.73% rise in the price of gold during the same period.
• Total assets held by the fund were $433,504,254, comprising 103,801.033 ounces of gold valued at fair value.
• Total liabilities were $56,319, primarily consisting of the Sponsor's fee payable.
• The fund experienced a net increase in net assets resulting from operations of $15,300,318 for the quarter.
• The Sponsor's fee for the quarter was $165,950, which slightly reduced the overall NAV increase.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive sentiment, reflecting the fund's performance mirroring gold price movements, with a slight increase in NAV per share during the quarter, offset by the inherent volatility of gold.

Positives

• The Net Asset Value (NAV) per share increased by 3.69% to $55.57 from $53.59 during the quarter, reflecting positive gold price performance.
• The fund successfully managed its holdings, with total assets valued at $433,504,254 as of September 30, 2026.
• The fund experienced a net increase in net assets from operations of $15,300,318 for the three months ended September 30, 2026.
• The fund holds 103,801.033 ounces of gold, valued at fair value, indicating a substantial physical backing.
• The fund's investment in gold is valued at $433,504,254, demonstrating significant market presence.

Negatives

• The fund's NAV per share increase was slightly less than the percentage increase in the price of gold due to the Sponsor's fee.
• For the six-month period ended September 30, 2026, the fund experienced a net decrease in net assets of $44,952,085 due to a decline in gold prices.
• The cost of investment in gold bullion ($322,953,706) was significantly lower than its fair value ($433,504,254) as of September 30, 2026, indicating a substantial unrealized gain but also exposure to potential price drops.

Risks

• Global gold supply and demand dynamics, including producer forward selling, central bank activities, and production costs, can affect gold prices.
• Investor expectations regarding future inflation rates can influence gold's value.
• Currency exchange rate volatility and interest rate volatility pose risks to the value of gold.
• Political, economic, global, or regional incidents, including tariffs and sanctions, can impact gold prices.
• There is no assurance that gold will maintain its long-term purchasing power.
• A decline in the price of gold is expected to result in a proportional decline in the value of shares in the fund.

Future Outlook

The fund's performance is directly tied to the price of gold bullion. Future results will depend on gold price movements, less the fund's expenses, primarily the Sponsor's fee.

Management Comments

• All statements other than statements of historical fact included in this report that address activities, events or developments that may occur in the future are forward-looking statements.
• Actual events or results may differ materially from those predicted in forward-looking statements due to various risks and uncertainties.
• The Sponsor has no duty to update any forward-looking statements to conform to actual results, other than as required by applicable laws.

Industry Context

StockSavvy.ai notes that this filing reflects the performance of a passively managed gold ETF, where returns are intrinsically linked to the commodity's price. The focus on 'responsibly sourced' gold aligns with a growing trend in the investment industry towards ESG (Environmental, Social, and Governance) considerations, though the primary driver remains gold price performance.

Comparison to Industry Standards

• The expense ratio of 0.15% for the Sponsor's fee is competitive within the gold ETF sector.
• The fund's strategy of holding physical gold bullion aligns with other major gold ETFs.
• The NAV per share performance is directly correlated with the LBMA Gold Price PM, a standard industry benchmark for gold pricing.

Legal Proceedings

• As of November 13, 2026, the Trust and the Fund are not subject to any material legal proceedings, nor are any material legal proceedings threatened.

Related Party Transactions

• Franklin Holdings, LLC is the Sponsor, and Franklin Distributors, LLC is the Marketing Agent. Both are affiliates and considered related parties.
• Franklin Templeton, Inc. is the ultimate parent company of the Sponsor and Marketing Agent and is also considered a related party.
• No shares of the Fund were held by any related party as of September 30, 2026, and March 31, 2026.

Stakeholder Impact

• Shareholders' investment value will fluctuate directly with the price of gold.
• The Sponsor's fee of 0.15% reduces the overall return to shareholders.
• The fund's structure as a grantor trust means income, gains, losses, and expenses flow through to shareholders for tax purposes.

Next Steps

• Continue to track the price of gold bullion as the primary driver of the fund's performance.
• Monitor the Sponsor's fee and its impact on the NAV per share relative to gold price movements.
• Evaluate future filings for any changes in the fund's investment strategy or operational expenses.

Key Dates

Recommendation

The fund's performance is directly tied to the price of gold, which is subject to significant volatility. While the fund accurately tracks gold prices less expenses, its value is inherently dependent on market fluctuations. Therefore, a 'hold' recommendation is appropriate for investors seeking exposure to gold without active management, acknowledging the inherent risks and lack of alpha generation.

Keywords

Gold ETF, Commodity ETF, Franklin Templeton, Responsible Sourcing, NYSE Arca, Precious Metals, Investment Fund, Quarterly Report