10-K: iShares S&P GSCI Commodity-Indexed Trust Reports Annual Results for Fiscal Year 2024

iShares S&P GSCI Commodity-Indexed Trust reports a decrease in net asset value primarily due to a decrease in outstanding shares, despite a net increase in net assets resulting from operations.

Summary

• The iShares S&P GSCI Commodity-Indexed Trust's net asset value decreased from $968.05 million at the end of 2023 to $967.55 million at the end of 2024.
• The decrease was mainly due to a reduction in outstanding shares from 48.2 million to 44.5 million, with 10.95 million shares created and 14.65 million shares redeemed during the year.
• This decrease was partially offset by a net increase in net assets resulting from operations of $69.99 million.
• The NAV increased by 8.27% from $20.08 to $21.74, which is related to a 3.79% increase in the settlement price for the Index Futures and interest income from U.S. Treasury bills.
• The Trust had a net realized and unrealized gain of $26.86 million, including a loss of $183,791 on short-term investments and a gain of $27.04 million on futures contracts.
• The Trust's expenses included Sponsor's Fees of $7.37 million and brokerage commissions and fees of $749,551.
• The Trust seeks to track the investment returns of the Index before fees and expenses.

Sentiment

Score: 6

Explanation: The sentiment is neutral. While the NAV per share increased, the overall net asset value decreased due to share redemptions. The report highlights both positive gains and negative impacts, resulting in a balanced outlook.

Positives

• The NAV increased by 8.27% from $20.08 to $21.74.
• The Trust had a net realized and unrealized gain of $26.86 million from operations.
• Interest income was $51.25 million, significantly exceeding the Sponsor's Fees of $7.37 million.

Negatives

• The Trust's net asset value decreased slightly from $968.05 million to $967.55 million in 2024.
• Outstanding shares decreased from 48.2 million to 44.5 million.

Risks

• The value of the Shares depends on the value of Index Futures, which fluctuates based on the prices of commodity futures contracts reflected in the S&P GSCI-ER.
• Commodity prices may be volatile and affected by various factors, leading to potential losses.
• The absence of backwardation or the existence of contango in the prices of the commodities included in the S&P GSCI-ER may adversely affect the value of your Shares.
• Regulatory developments with respect to the futures and over-the-counter (OTC) derivatives markets, and in particular, with respect to speculative trading in futures contracts and OTC derivatives involving commodities and commodity indices, could adversely affect the value of your Shares.
• The Trust may be negatively impacted by the effects of the spread of illnesses or other public health emergencies on the global economy and the markets and service providers relevant to the performance of the Trust.
• Russias invasion of Ukraine, and sanctions brought by the United States and other countries against Russia, have resulted in significant disruptions and increased volatility in the markets for certain commodities, including energy, precious metals, agriculture and other sectors.

Future Outlook

The Trust seeks to track the investment returns of the Index before payment of the Trusts expenses and liabilities.

Industry Context

The report provides insight into the performance of a commodity-indexed trust, reflecting broader trends in commodity markets and investor sentiment towards commodity-related investments. The performance is tied to the S&P GSCI, a widely recognized benchmark for global commodity markets.

Comparison to Industry Standards

• The iShares S&P GSCI Commodity-Indexed Trust (GSG) aims to replicate the performance of the S&P GSCI Total Return Index, which is a common benchmark for commodity investments.
• Comparable ETFs include the Invesco DB Commodity Index Tracking Fund (DBC) and the United States Commodity Index Fund (USCI).
• GSG's expense ratio of 0.75% is comparable to other commodity ETFs, but investors should consider tracking error and liquidity when comparing performance.
• GSG's performance is directly tied to the S&P GSCI, so its returns will mirror the index's performance, which may differ from other commodity indices due to weighting methodologies and commodity selection.

Stakeholder Impact

• Shareholders experienced an increase in NAV per share, but the overall value of the trust decreased.
• Authorized Participants were active in creating and redeeming shares, impacting the trust's composition.
• The Sponsor received fees based on the net asset value of the trust.

Key Dates