10-Q: Goldman Sachs Gold ETF Soars on Bullion Price Surge

Goldman Sachs Physical Gold ETF (AAAU) reported substantial growth in net assets and share value for Q3 and YTD 2025, driven by a significant increase in gold prices.

Summary

• Net assets of the Trust increased to $1,969,759,192 as of September 30, 2025, up from $889,603,323 at December 31, 2024.
• Net asset value (NAV) per Share rose to $37.77 at September 30, 2025, compared to $25.81 at December 31, 2024.
• The market value per Share also increased to $38.12 at September 30, 2025, from $25.94 at December 31, 2024.
• Total Return at NAV for the nine months ended September 30, 2025, was 46.34%, and 16.32% for the three months ended September 30, 2025.
• Total Return at market value for the nine months ended September 30, 2025, was 46.95%, and 16.65% for the three months ended September 30, 2025.
• The price of gold (LBMA PM Gold Price) increased by 46.52% from $2,610.85 at December 31, 2024, to $3,825.30 at September 30, 2025.
• The Trust held 515,000.3 ounces of gold at a fair value of $1,970,030,751 as of September 30, 2025.
• Shares outstanding increased to 52,154,722 at September 30, 2025, from 34,466,000 at December 31, 2024, primarily due to significant share creations.
• Net increase in net assets from operations for the nine months ended September 30, 2025, was $522,726,915, compared to $169,924,776 for the same period in 2024.

Sentiment

Score: 8

Explanation: The Trust demonstrated strong performance, with significant increases in net assets, NAV per share, and total returns, directly reflecting a substantial rise in gold prices. This indicates successful execution of its investment objective and strong investor interest, despite inherent market risks.

Positives

• Significant appreciation in gold prices led to a 46.52% increase in the LBMA PM Gold Price from December 31, 2024, to September 30, 2025.
• Net assets more than doubled, growing from $889.6 million at December 31, 2024, to $1.97 billion at September 30, 2025.
• NAV per Share increased substantially from $25.81 to $37.77 over the nine-month period, reflecting strong performance.
• The Trust experienced significant share creations, with 19,338,722 shares created (774 Baskets) in the nine months ended September 30, 2025, indicating strong investor interest.
• The ETF successfully met its investment objective of reflecting the performance of the price of gold, with total returns closely mirroring gold price movements.

Negatives

• The Trust incurred a net investment loss of $(1,885,925) for the nine months ended September 30, 2025, primarily due to the Sponsor Fee.
• The Trust is subject to various risks related to gold price volatility, which could lead to declines in share value if gold prices fall.

Risks

• Global gold supply and demand, influenced by factors such as forward selling by gold producers, central bank activities, and production levels.
• Investors' expectations regarding future inflation rates.
• Currency exchange rate volatility.
• Interest rate volatility.
• Political, economic, global, or regional incidents.
• No assurance that gold will maintain its long-term value in terms of purchasing power.
• A decline in the price of gold is expected to cause a proportionate decline in the value of the Shares.

Future Outlook

The Trust's investment objective is to reflect the performance of the price of gold less the expenses of its operations. It is a passive investment vehicle, and its value will fluctuate directly with the price of gold. The Sponsor does not intend to update forward-looking statements unless required by federal securities laws, and past movements in gold prices are not indicative of future movements.

Management Comments

• "We do not intend to update any forward-looking statements even if new information becomes available or other events occur in the future, except as required by the federal securities laws."
• "We express our estimates, expectations, beliefs, and projections in good faith and believe them to have a reasonable basis. However, we make no assurances that management's estimates, expectations, beliefs, or projections will be achieved or accomplished."
• "The Trust maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in reports that are filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms."
• "The Trust's disclosure controls and procedures were effective as of September 30, 2025."

Industry Context

The significant increase in the Trust's net assets and share value directly correlates with the strong performance of gold prices during the reported period. This reflects a broader trend of increased investor interest in gold, likely driven by factors such as inflation expectations, currency volatility, and geopolitical uncertainties, which typically bolster demand for safe-haven assets like gold. The ETF's passive management strategy means its performance is a direct proxy for the underlying gold market, making it a bellwether for gold investment sentiment.

Comparison to Industry Standards

• The Goldman Sachs Physical Gold ETF (AAAU) aims to reflect the performance of the price of gold less expenses. Its total returns at NAV (46.34% YTD Sep 2025) and market value (46.95% YTD Sep 2025) closely align with the 46.52% increase in the LBMA PM Gold Price over the same period, indicating effective tracking of its underlying commodity.
• Compared to other major physical gold ETFs, such as SPDR Gold Shares (GLD) or iShares Gold Trust (IAU), AAAU's expense ratio of 0.18% is competitive, positioning it favorably for cost-conscious investors seeking direct gold exposure.
• The substantial increase in gold holdings (from 340,786.7 ounces to 515,000.3 ounces) and net assets demonstrates strong capital inflows, comparable to growth seen in leading commodity ETFs during periods of heightened demand for the underlying asset.

Corporate Governance

Related Party Transactions

• Goldman Sachs Asset Management, L.P. (Sponsor) receives an annualized fee of 0.18% of the Trust's Net Asset Value.
• Goldman Sachs & Co. LLC, an affiliate of the Sponsor, is one of the Authorized Participants for the creation and redemption of Baskets.
• Affiliates of The Bank of New York Mellon (Trustee) may act as Authorized Participants or purchase/sell gold or Trust Shares for their own account.

Stakeholder Impact

• Shareholders: Benefited significantly from the appreciation in gold prices, leading to substantial increases in NAV and market value per share and strong total returns.
• Sponsor (Goldman Sachs Asset Management, L.P.): Received fees based on the Trust's net asset value, which increased due to gold price appreciation and asset growth.
• Authorized Participants: Engaged in significant creation activity, indicating healthy market participation and demand for the ETF shares.

Next Steps

• The Trust will continue to operate as a passive investment vehicle, reflecting the performance of the price of gold less expenses.
• The Sponsor will continue to monitor and manage the operating results of the Trust.

Key Dates

Recommendation

The Goldman Sachs Physical Gold ETF (AAAU) has demonstrated exceptional performance, with net assets and NAV per share more than doubling over the past nine months, directly reflecting a substantial 46.52% surge in gold prices. The ETF effectively tracks its underlying commodity with a competitive expense ratio. Given the current macroeconomic environment, including persistent inflation concerns, geopolitical instability, and potential for continued currency debasement, gold remains a highly attractive safe-haven asset. The strong capital inflows into AAAU suggest robust investor confidence in gold's upward trajectory. For investors seeking direct, efficient exposure to physical gold, AAAU represents a strong buy, capitalizing on the positive momentum and fundamental drivers for gold.

Keywords

Gold ETF, Physical Gold, AAAU, Goldman Sachs, LBMA Gold Price, Commodity ETF, Investment, Precious Metals, SEC Filing, 10-Q