10-Q: iShares S&P GSCI Trust Reports Strong Q3 2025 Performance

iShares S&P GSCI Commodity-Indexed Trust reported a significant increase in net assets and NAV per share for Q3 and the nine months ended September 30, 2025, driven by strong realized and unrealized gains from futures contracts.

Summary

• Net assets increased to $994,070,222 as of September 30, 2025, from $967,549,530 at December 31, 2024.
• Net asset value (NAV) per Share rose to $22.90 at September 30, 2025, from $21.74 at December 31, 2024.
• For the three months ended September 30, 2025, net assets from operations increased by $38,642,473, a significant turnaround from a $59,879,999 decrease in the prior year period.
• Net realized and unrealized gains for the quarter were $29,859,648, compared to a $70,955,953 loss in the same quarter last year.
• For the nine months ended September 30, 2025, net assets from operations increased by $48,057,463, up from $36,958,771 in the prior year period.
• Total return at net asset value for the nine months ended September 30, 2025, was 5.34%, compared to 4.53% for the same period in 2024.
• The Trust's NAV increase was primarily driven by a 2.98% increase in the settlement price for Index Futures during Q3 2025 and 2.76% for the nine-month period, augmented by interest income from U.S. Treasury bills.
• Shares outstanding decreased by 1,100,000 for the nine months ended September 30, 2025, with 12,250,000 shares issued and 13,350,000 shares redeemed.

Sentiment

Score: 7

Explanation: The Trust demonstrated strong financial performance with significant increases in net assets and NAV per share, driven by positive realized and unrealized gains from futures contracts. However, the filing also highlights inherent risks associated with commodity market volatility, geopolitical events, and the concentrated nature of the Index Futures market, which temper the overall positive sentiment.

Positives

• Significant increase in net assets from operations for both the three months ($38,642,473) and nine-month period ($48,057,463) ended September 30, 2025, compared to the prior year.
• Strong turnaround in net realized and unrealized gains from futures contracts, moving from a $77,701,360 loss in Q3 2024 to a $17,956,102 gain in Q3 2025.
• Net asset value per Share (NAV) increased to $22.90 at September 30, 2025, from $21.74 at December 31, 2024, and $22.06 at June 30, 2025.
• Total return at net asset value for the nine months ended September 30, 2025, was 5.34%, an improvement over the 4.53% for the same period in 2024.
• Disclosure controls and procedures, and internal control over financial reporting, were evaluated as effective.

Negatives

• Cash balance significantly decreased from $1,502,280 at December 31, 2024, to $121,011 at September 30, 2025.
• Net investment income decreased for both the three months ($10,836,500 vs $13,037,036) and nine months ($31,814,938 vs $40,198,623) ended September 30, 2025, compared to 2024.
• The Trust experienced a net change in unrealized depreciation on futures contracts of $(25,642,257) for the nine months ended September 30, 2025, a shift from appreciation in the prior year.
• Shares issued and outstanding decreased by 1,100,000 for the nine months ended September 30, 2025, indicating net redemptions.
• Net cash provided by operating activities decreased significantly from $121,210,163 for the nine months ended September 30, 2024, to $23,591,227 for the same period in 2025.

Risks

• Geopolitical events, including the continuation of the Russian war in Ukraine, conflict in the Middle East, and trade conflicts, could disrupt the global economy and commodity markets, negatively impacting the S&P GSCI-ER and Share value.
• Interest rate risk refers to fluctuations in the value of fixed-income securities (like U.S. Treasury bills) due to changes in interest rates, which could lead to declines in value or liquidity for the Trust's cash equivalents.
• Credit risk exists with the CME's clearing house and the Trust's futures commission merchant (Clearing FCM), Goldman Sachs & Co. LLC; a default or failure to segregate assets could cause losses or delays in recovering Trust assets.
• The Index Futures market has limited liquidity, with the Trust representing substantially all of the long-side open interest and Goldman Sachs & Co. LLC or its accountholders representing a substantial portion of the short-side, which could exacerbate losses if the Trust needs to liquidate positions.
• The underlying commodity markets are historically extremely volatile, which directly affects the value of the S&P GSCI-ER and, consequently, the Trust's Shares.

Future Outlook

The Trust expects to continue tracking the S&P GSCI Total Return Index by holding long positions in exchange-traded index futures contracts and collateral assets. The Sponsor does not make forward-looking statements unless it believes it has a reasonable basis, but cannot guarantee accuracy due to various risks and uncertainties including economic conditions, regulatory changes, and geopolitical developments.

Management Comments

• "Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report."
• "Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report."
• "The duly authorized officers of the Sponsor... have evaluated the effectiveness of the Trusts disclosure controls and procedures, and have concluded that the disclosure controls and procedures of the Trust were effective as of the end of the period covered by this report."

Industry Context

The Trust operates within the commodity futures market, specifically tracking the S&P GSCI Total Return Index. The filing highlights the inherent volatility of commodity markets and the impact of geopolitical events, such as the Russian war in Ukraine, which has contributed to backwardation in energy futures. The Trust's strategy of holding fully collateralized long positions in index futures exposes it directly to these market dynamics. The limited liquidity in the Index Futures market, with the Trust holding a substantial long-side interest and Goldman Sachs & Co. LLC holding a substantial short-side interest, indicates a concentrated market structure that could amplify risks during liquidation events.

Comparison to Industry Standards

• The Trust's performance is directly tied to the S&P GSCI Total Return Index, which serves as its benchmark. The Trust seeks to track the investment returns of the Index before expenses and liabilities.
• The Trust's expense ratio (0.82% annualized for the nine months ended September 30, 2025) is a key metric for comparison against other commodity ETFs or managed futures funds, though specific comparable entities are not detailed in the filing.

Legal Proceedings

• None.

Related Party Transactions

• The Sponsor, Trustee, and Advisor are considered related parties to the Trust.
• The Sponsor receives an annualized fee equal to 0.75% of the net asset value of the Trust, paid monthly in arrears.
• The Sponsor pays various administrative, operational, and marketing expenses, including fees for the Trustee, Delaware Trustee, Advisor, Trust Administrator, processing agent, NYSE Arca listing fees, printing and mailing costs, audit fees, SEC registration fees, tax reporting costs, license fees, and legal expenses up to $500,000 annually.

Stakeholder Impact

• Shareholders experienced an increase in NAV per share and positive total return, indicating a favorable investment performance for the period. However, they are exposed to the risks of commodity market volatility, geopolitical events, and potential credit risks of the Clearing FCM.
• Authorized Participants continue to facilitate the creation and redemption of Baskets, which are essential for the Trust's liquidity mechanism.
• The Sponsor (iShares Delaware Trust Sponsor LLC) continues to receive a fee based on the Trust's net asset value and manages the Trust's operations, including paying most ordinary expenses.
• The Clearing FCM (Goldman Sachs & Co. LLC) plays a critical role in the Trust's futures positions, but also presents a credit risk to the Trust.

Next Steps

• The Trust will continue to track the S&P GSCI Total Return Index through its investment strategy.
• The Sponsor will continue to evaluate the effectiveness of disclosure controls and internal control over financial reporting.
• The Trust will continue to issue and redeem Shares in Baskets through Authorized Participants.

Key Dates

Recommendation

The Trust shows strong operational performance and NAV growth for the period, indicating effective management of its commodity futures strategy. However, the inherent volatility of commodity markets, coupled with specific risks like the concentrated liquidity in the Index Futures market and geopolitical uncertainties, suggests a cautious approach. While the current results are positive, these external factors warrant a 'hold' recommendation, advising investors to maintain their positions but remain vigilant to market shifts and risk developments rather than aggressively buying or selling.

Keywords

Commodity-Indexed Trust, S&P GSCI, Futures Contracts, Commodity Pool, SEC Filing, Financial Results, Investment Performance, Market Risk, Credit Risk, Geopolitical Risk, U.S. Treasury Bills, NAV, BlackRock