10-Q: iShares S&P GSCI Commodity-Indexed Trust Reports Increased Net Asset Value in Q2 2024

The iShares S&P GSCI Commodity-Indexed Trust saw its net asset value increase to $1,098.5 million in the second quarter of 2024, driven by both operational gains and an increase in outstanding shares.

Summary

• The iShares S&P GSCI Commodity-Indexed Trust reported a net asset value of $1,098,519,705 as of June 30, 2024, up from $968,051,679 at the end of 2023.
• The increase in net asset value was primarily due to a net increase in net assets from operations and an increase in the number of outstanding shares.
• The Trust's net asset value per share increased to $22.19 as of June 30, 2024, compared to $20.08 at the end of 2023.
• The Trust had a net increase in net assets resulting from operations of $96,838,770 for the six months ended June 30, 2024.
• The Trust's total return at net asset value was 10.51% for the six months ended June 30, 2024.
• The Trust's assets primarily consist of index futures contracts and U.S. Treasury bills.
• The Trust's outstanding shares increased from 48,200,000 at the end of 2023 to 49,500,000 as of June 30, 2024.

Sentiment

Score: 7

Explanation: The document shows positive growth in net asset value and share price, but also highlights risks associated with commodity markets and counterparty exposure. The overall sentiment is positive but with caution.

Positives

• The Trust's net asset value increased significantly during the first half of 2024.
• The Trust experienced positive returns on its investments.
• The increase in outstanding shares indicates investor interest in the Trust.
• The Trust's net investment income was $22,928,627 for the six months ended June 30, 2024.

Negatives

• The Trust experienced a net realized and unrealized loss of $99,510 on short-term investments for the six months ended June 30, 2024.
• The Trust had a net realized and unrealized loss of $7,432,533 for the quarter ended June 30, 2024.
• The Trust is exposed to market risk due to its concentration in index futures and U.S. Treasury bills.
• The Trust is exposed to credit risk from its futures commission merchant and the clearing house.

Risks

• The Trust is exposed to market risk due to fluctuations in the value of index futures and interest rate changes.
• The Trust is subject to credit risk from the clearing house and its futures commission merchant.
• The Trust's performance is heavily reliant on the S&P GSCI-ER index.
• The limited number of market participants in the index futures market could exacerbate losses if the Trust needs to liquidate its positions.
• Changes in interest rates may negatively impact the value of the Trust's U.S. Treasury bill holdings.

Future Outlook

The Trust intends to continue offering shares on a continuous basis and seeks to track the investment returns of the S&P GSCI Total Return Index before payment of expenses and liabilities.

Management Comments

• The duly authorized officers of the Sponsor have evaluated the effectiveness of the Trusts disclosure controls and procedures and have concluded that they were effective.
• The Sponsor does not make forward looking statements unless it believes it has a reasonable basis for doing so, but cannot guarantee their accuracy.

Industry Context

This report reflects the performance of a commodity-indexed trust, which is influenced by the volatility of commodity markets and the performance of the S&P GSCI-ER index. The Trust's performance is also affected by interest rate changes and the creditworthiness of its counterparties.

Comparison to Industry Standards

• The iShares S&P GSCI Commodity-Indexed Trust is designed to track the S&P GSCI Total Return Index, a benchmark for commodity market performance.
• The Trust's performance is comparable to other commodity-indexed investment products that aim to replicate the returns of similar indices.
• The Trust's expense ratio of 0.75% is within the range of similar exchange-traded products.
• The Trust's reliance on futures contracts and U.S. Treasury bills is a common strategy for commodity-linked investments.
• The Trust's performance is subject to the same market risks as other commodity-based investments, including price volatility and counterparty risk.

Related Party Transactions

• The Sponsor, the Trustee, and the Advisor are considered related parties to the Trust.
• The Sponsor receives a fee from the Trust at an annualized rate of 0.75% of the net asset value.

Stakeholder Impact

• Shareholders benefit from the increase in net asset value and share price.
• Authorized Participants can create and redeem shares in baskets.
• The Trust's performance is directly linked to the performance of the S&P GSCI-ER index, impacting investors seeking exposure to commodity markets.
• The Trust's expenses, including sponsor fees and brokerage commissions, impact the overall returns for shareholders.

Next Steps

• The Trust will continue to roll out of existing positions in Index Futures and establish new positions on an ongoing basis.
• The Trust will continue to offer shares on a continuous basis.
• The Trust will continue to monitor market conditions and manage its assets to track the S&P GSCI Total Return Index.

Key Dates

Keywords

iShares, S&P GSCI, Commodity-Indexed Trust, Index Futures, Net Asset Value, Commodities, Treasury Bills, Futures Contracts, Investment, Financial Report