10-K: VanEck Merk Gold ETF NAV Soars 120% in Fiscal 2026

VanEck Merk Gold ETF reported a significant 120.85% increase in Net Asset Value to $2.9 billion for the fiscal year ended January 31, 2026, driven by strong gold price appreciation.

Summary

• The Trust's Net Asset Value (NAV) increased by 120.85% from $1,314,597,389 on January 31, 2025, to $2,903,285,926 on January 31, 2026.
• Shares outstanding grew from 48,664,686 to 62,358,853 during the fiscal year.
• NAV per Share rose by 72.38% from $27.01 on January 31, 2025, to $46.56 on January 31, 2026.
• The net increase in net assets from operations for the year ended January 31, 2026, was $1,092,864,123.
• This increase was primarily due to a net change in unrealized appreciation on gold bullion of $1,085,411,124 and a net realized gain of $12,284,110 from gold bullion distributed for redemptions.
• The Sponsor's Fee for the fiscal year was $4,831,111, representing 0.17% of the Trust's net assets on an annualized basis.
• The pricing index used for valuing gold changed from the LBMA PM Gold Price to the Solactive Gold Spot Index effective August 7, 2023.
• The settlement cycle for the creation and redemption of Baskets was changed to T+1 (one business day after trade date) effective May 28, 2024.
• A physical gold audit for January 31, 2026, was conducted on February 6, 2026, due to vault unavailability on the fiscal year-end date.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a very positive report, reflecting substantial growth in assets and share value driven by a strong gold market. The operational effectiveness and physical delivery option are strengths, though inherent risks associated with gold price volatility and the new index are noted.

Positives

• Net Asset Value (NAV) increased significantly by 120.85% to $2.90 billion, indicating strong asset growth.
• NAV per Share saw a substantial rise of 72.38% to $46.56, reflecting positive performance for investors.
• The Trust experienced a large net change in unrealized appreciation on gold bullion of over $1.08 billion, demonstrating the strong performance of its underlying asset.
• Total gold bullion holdings increased to 600,072 Fine Ounces, up from 469,450 Fine Ounces in the prior year.
• The Trust's internal control over financial reporting was deemed effective as of January 31, 2026, by the Sponsor's Principal Executive Officer and confirmed by the independent auditor.
• The option for investors to take physical delivery of gold in exchange for Shares provides a unique and attractive feature compared to many other gold investment products.

Negatives

• The NAV per Share increased slightly less than the price per Ounce of gold on a percentage basis due to the Sponsors Fee.
• The Trust is not actively managed and does not employ hedging techniques, meaning it does not seek to profit from short-term market fluctuations or mitigate losses from price decreases.
• The physical gold audit for January 31, 2026, was delayed to February 6, 2026, due to unavailability of time slots at the vault, which could be perceived as an operational inconvenience.
• The Solactive Index, adopted as the new pricing mechanism, is new and has limited trading data, which could impact its accuracy as a benchmark.

Risks

• The value of Shares is directly related to the price of gold, which can fluctuate widely due to global supply and demand, political/economic events, inflation expectations, currency exchange rates, and interest rate volatility.
• There is no guarantee that the historically high trading price of gold will be sustained, potentially leading to significant decreases in the Trust's net assets and NAV.
• Physical gold allocated to the Trust may not meet London Bar standards, and if the Custodian fails to cover any deficiency, the Trust could suffer a loss.
• The value of gold in the Trust is limited to its Fine Ounce content, as the Sponsor assumes conversion costs and profits for non-London Bar gold.
• The Solactive Index is new and may have limited trading data and potential disruptions, which could adversely affect the valuation of the Trust's gold and the value of Shares.
• Future governmental decisions, such as those concerning gold ownership or monetary policy, may significantly impact the price of gold.
• An investment in the Trust is not diversified, as it invests only in gold, making it potentially more volatile than a broadly diversified portfolio.
• The Trust's gold is subject to risks of loss, damage, theft, or restricted access, and recovery may be limited to the market value at the time of discovery, as the Trust does not insure the gold.
• Gold market liquidity and supply risks, including potential delays from the Bank of England and widening bid-ask spreads due to logistical bottlenecks or tariffs, could affect gold prices and hedging costs.
• Substantial sales of gold by central banks, governmental agencies, or multi-lateral institutions could adversely affect gold prices and, consequently, the Shares.
• Shares may trade at a discount or premium to NAV, potentially widening due to non-concurrent trading hours between NYSE Arca and major gold markets.
• There may not be an active trading market for the Shares, which could adversely affect market prices and liquidity upon disposition.
• The Trust is not actively managed and does not use hedging techniques, exposing investors to the full risks of gold price fluctuations.
• The Trust may suspend redemptions of Baskets by Authorized Participants or the surrender of Shares for physical gold, which could reduce liquidity and result in losses if gold prices decline during the delay.
• The withdrawal of an Authorized Participant or substantial redemptions could decrease the liquidity of the Shares.
• Competition from other methods of investing in gold could limit the market for and reduce the liquidity of the Shares.
• Sales of other exchange-traded vehicles (ETVs) tracking gold markets could negatively affect gold prices and the price and NAV of the Shares.
• Financial crises may motivate large-scale sales of gold, leading to short-term negative impacts on gold prices.
• Factors such as increased gold hedging, negative speculative sentiment, or widening interest rate differentials could cause a decline in gold prices.
• Payment of the Sponsor's Fee in Shares and the sale of gold by the Trust to cover expenses will decrease the amount of gold represented by each Share, requiring gold price increases to maintain value.
• Unanticipated operational or trading problems with the Trust's mechanics could have a material adverse effect on an investment in the Shares.
• Shareholders with large holdings (at least 75% of Shares) have the right to terminate the Trust, potentially at a disadvantageous time for other investors.
• An investor's instruction to a broker-dealer for a Share Submission to exchange for physical gold is irrevocable once submitted.
• Delivery of physical gold to Delivery Applicants may take considerable time, risking losses if the price of gold declines during the delay.
• A Delivery Applicant bears the risk of loss or damage to physical gold during delivery once it is surrendered to the Delivery Service Provider.
• Counterparty risks exist with precious metals dealers used to exchange the Trust's gold for different specifications, including potential quantity and quality deficiencies.
• The Trust bears the risk of loss in the event of default or bankruptcy of a precious metals dealer, as it would be an unsecured creditor.
• A failure by a precious metals dealer to exercise due care in the exchange and delivery of gold could result in a loss to the Trust, with recovery potentially limited by contractual terms and insurance adequacy.
• Physical gold may not be available in requested sizes, leading to delays or changes in processing fees for Delivery Applicants.
• Physical gold delivered outside the 'chain of integrity' (e.g., to a non-institutional destination) may need to be re-assayed, incurring additional costs, delays, and potentially trading at a discount.
• Investors have limited rights compared to shareholders of traditional corporations, including extremely limited voting rights.
• Investors do not have the protections normally associated with ownership of shares in an investment company registered under the 1940 Act or protections afforded by the Commodity Exchange Act.
• The Trust may be required to terminate and liquidate at a time that is disadvantageous to investors, such as when gold prices are low.
• The limited liability of the Custodian under the Custody Agreement and U.K. law may impair the Trust's ability to recover losses concerning its gold, even in cases of fraud.
• It may be difficult for the Trust to seek legal redress against the Custodian due to the governance by U.K. law and potential enforcement challenges in U.S. courts.
• Investors and Authorized Participants do not have the right to assert claims directly against the Custodian under the Custody Agreement.
• A failure by the Custodian to exercise due care in safekeeping gold could result in a loss to the Trust, as the Trustee has limited monitoring obligations.
• The Trust would be an unsecured creditor of the Custodian for gold held in unallocated accounts in the event of the Custodian's insolvency.
• Baskets may be issued for more or less gold than required if the Trustee relies on incorrect information from the Custodian.
• Any indemnification payments the Trust is required to pay to the Sponsor, Trustee, or Custodian could adversely affect the value of the Shares.
• The Custodian's gold bullion custody operations are not subject to specific governmental regulatory supervision, relying on LBMA best practices and internal controls.
• The Trust's service providers may not carry adequate insurance to cover claims, potentially affecting recovery for losses.
• The Trust and its service providers are vulnerable to the effects of public health crises (e.g., COVID-19) causing operating delays, market disruption, and shutdowns.
• The Trust and its service providers are vulnerable to geopolitical events (e.g., Middle East conflicts, Ukraine war, changes in international trade policy) causing market volatility, supply chain disruptions, and impacting gold prices.
• Information system disruptions, cybersecurity attacks, or other disruptions could adversely affect the Trust's record-keeping, operations, and data integrity.

Future Outlook

The report includes standard cautionary notes regarding forward-looking statements, indicating that future events or performance are subject to risks and uncertainties, including changes in commodity prices, market conditions, laws, regulations, and global economic and political developments. No specific quantitative guidance or future estimates are provided by the Sponsor or Trust beyond these general disclaimers.

Management Comments

• "The Trust is not actively managed. It does not engage in any activities designed to obtain a profit from, or to compensate investors for losses caused by, changes in the price of gold."
• "The Sponsor intends to accept Shares of the Trust for the Sponsors Fee and reimbursement of expenses not assumed by the Sponsor."
• "The Principal Executive Officer of the Sponsor concluded that the Trust maintained effective internal control over financial reporting as of January 31, 2026."

Industry Context

StockSavvy.ai notes that the significant appreciation in the Trust's gold holdings and Net Asset Value reflects a strong bull market for gold in 2025, likely driven by global economic uncertainties, inflation concerns, and increased central bank purchases, as detailed in the 'Overview of the Gold Industry' section. The shift to the Solactive Index for valuation aligns with broader industry trends towards more transparent and robust pricing mechanisms for commodities. Geopolitical tensions, such as the conflicts in the Middle East and Ukraine, are identified as ongoing factors that could contribute to gold price volatility and impact global markets.

Comparison to Industry Standards

• The Trust's 0.25% Sponsor's Fee is competitive within the gold ETF market, often lower than actively managed funds or the direct costs associated with storing physical gold.
• The unique option for physical gold delivery in exchange for Shares differentiates the VanEck Merk Gold ETF from many other gold ETFs, which typically only offer cash settlement.
• Gold price volatility (14.4% for 2021-2025) is noted as historically less volatile than other commodities like silver (27.9% for 2021-2025) and comparable to the S&P 500 (15.1% for 2021-2025), positioning gold as a potentially stable asset relative to other commodities and equity markets.

Corporate Governance

Related Party Transactions

• Merk Investments LLC (Sponsor) receives an annualized fee of 0.25% of the Trust's NAV, paid in Shares, and assumes certain administrative and marketing expenses.
• Van Eck Securities Corporation (Marketing Agent) receives fees from the Sponsor's fee for providing marketing assistance to the Trust.
• Affiliates of The Bank of New York Mellon (Trustee) and JPMorgan Chase Bank N.A. (Custodian) may act as Authorized Participants or engage in gold/Shares transactions for their own accounts or on behalf of customers.

Stakeholder Impact

• Shareholders: Directly benefit from the significant appreciation in gold prices and the Trust's NAV, with the added option of physical gold delivery. However, they are exposed to gold price volatility and have limited voting rights.
• Authorized Participants: Continue to facilitate the creation and redemption of Baskets, subject to transaction fees and operational changes like the T+1 settlement cycle. They bear risks related to Custodian insolvency for unallocated gold.
• Sponsor (Merk Investments LLC): Benefits from increased AUM and corresponding Sponsor fees, while continuing to manage administrative and marketing expenses and oversee Trust operations.
• Trustee (The Bank of New York Mellon): Continues its role in day-to-day administration, gold valuation, and processing transactions, with its fees paid by the Sponsor.
• Custodian (JPMorgan Chase Bank N.A.): Responsible for safekeeping the Trust's gold and facilitating transfers, but its liability is limited, and its gold custody operations are not subject to specific governmental regulatory supervision.
• Precious Metals Dealers: Engage in over-the-counter transactions with the Sponsor for gold exchanges, facing counterparty risks and responsibilities for quantity and quality of physical gold.

Next Steps

• The Sponsor will continue to develop and implement marketing plans and materials for the Trust.
• The Sponsor will maintain the Trust's website to provide information to investors.
• The Sponsor may engage in over-the-counter transactions with precious metals dealers to exchange the Trust's gold for different specifications as requested by Delivery Applicants.
• The Sponsor will review Delivery Applications from investors wishing to take physical delivery of gold and coordinate the delivery process.
• The Sponsor's Chief Information Security Officer (CISO) will review and update the risk assessment for information systems at least annually.
• The CISO will evaluate the adequacy of risk mitigation strategies for information systems at least annually and following any significant operational changes.

Key Dates

Recommendation

The VanEck Merk Gold ETF demonstrated exceptional performance in fiscal year 2026, with NAV surging over 120% and NAV per share increasing by 72.38%, significantly outperforming prior years. This growth is underpinned by a robust gold market and increased investor interest, as evidenced by substantial unrealized appreciation in gold holdings. The unique physical delivery option provides a distinct advantage for investors seeking direct gold exposure. While the Trust is passive and subject to gold price volatility, its strong financial results, effective internal controls, and competitive fee structure make it a compelling investment for those bullish on gold and seeking a secure, accessible vehicle. The identified risks are inherent to gold investments or ETF structures and appear adequately disclosed and managed within the Trust's framework.

Keywords

Gold ETF, OUNZ, VanEck Merk Gold ETF, Physical Gold, Gold Bullion, Investment Trust, SEC Filing, Financial Report, Commodity, Exchange Traded Fund, Gold Price, Solactive Index, Custody, Risk Management, Financial Performance