10-Q: VanEck Merk Gold ETF Q1 2026 Financial Update

VanEck Merk Gold ETF reports a decrease in Net Asset Value (NAV) for Q1 2026 due to gold price depreciation, with total assets falling to $2.825 billion.

Summary

• The VanEck Merk Gold ETF (OUNZ) reported its financial results for the quarter ended April 30, 2026.
• Total assets decreased to $2,825,460,928 from $2,903,285,932 at the end of the previous quarter (January 31, 2026).
• The Net Asset Value (NAV) per share declined to $44.40 from $46.56.
• The primary driver for the decrease in NAV was a net change in unrealized depreciation on investment in gold bullion amounting to $(149,474,720).
• Total expenses for the quarter were $1,799,698, primarily consisting of sponsor fees.
• The number of shares outstanding increased from 62,358,853 to 63,638,566, partly due to shares issued for sponsor fees.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as negative due to the decline in NAV per share and overall assets, driven by depreciation in gold bullion value, despite the Trust's core function being to track gold prices.

Positives

• The Trust continues to hold a significant amount of physical gold bullion, valued at $2,825,460,928 as of April 30, 2026.
• The Trust successfully managed creations and redemptions, with 1,738,673 shares issued and 458,960 shares redeemed during the quarter.
• The Sponsor continues to cover most of the Trust's expenses, with the primary expense being the sponsor fee.

Negatives

• The Net Asset Value (NAV) per share decreased by 4.64% during the quarter, from $46.56 to $44.40.
• The Trust experienced a net investment loss of $(1,799,698) for the quarter.
• There was a significant net change in unrealized depreciation on gold bullion of $(149,474,720) for the quarter.
• The total assets of the Trust decreased by 2.68% during the quarter.

Risks

• Fluctuations in the value of gold bullion will affect the value of Shares, which are designed to reflect the performance of the price of gold bullion, less the Trusts expenses.
• Global gold supply and demand, influenced by factors such as forward selling by producers, central bank actions, and production costs, can impact gold prices.
• Investors' expectations regarding inflation rates, currency exchange rates, and interest rates can affect gold prices.
• Investment and trading activities of hedge funds and commodity funds can influence gold prices.
• Global or regional political, economic, or financial events and situations can adversely affect gold prices.
• There is no assurance that gold will maintain its long-term value in terms of purchasing power.

Future Outlook

The filing does not contain specific forward-looking financial guidance. However, it reiterates the Trust's primary objective to provide investors with an opportunity to invest in gold and for the shares to reflect the performance of the price of gold less the expenses of the Trust's operations. The value of the shares is expected to be influenced by gold prices and market conditions.

Management Comments

• The Trusts NAV decreased from $2,903,285,926 on January 31, 2026 to $2,825,460,914 on April 30, 2026, a 2.68% decrease, compared to a 26.44% increase from $1,314,597,389 on January 31, 2025 to $1,662,219,685 on April 30, 2025.
• The decrease in the Trusts NAV in the quarter ended April 30, 2026 resulted from a decrease in the value of investments in gold bullion as compared to the prior period.
• The Trusts NAV per Share decreased 4.64% during the quarter ended April 30, 2026, starting at $46.56 per Share and ending at $44.40 per Share, compared to an increase of 17.59%, from $27.01 to $31.76 during the quarter ended April 30, 2025.
• The NAV per share of $51.34 on March 02, 2026 was the highest during the quarter, compared with a low of $41.97 on March 26, 2026.

Industry Context

StockSavvy.ai notes that this filing reflects the performance of a physically-backed gold ETF during a period where gold prices experienced depreciation. This contrasts with periods of gold price appreciation, as seen in the prior year's quarter. The performance is directly tied to the spot price of gold, influenced by macroeconomic factors and investor sentiment towards safe-haven assets.

Comparison to Industry Standards

• The VanEck Merk Gold ETF's performance is benchmarked against the Solactive Gold Spot Index, which is used to value the Trust's gold holdings.
• The filing details the methodology of the Solactive Index, which uses Time Weighted Average Prices (TWAP) of gold trading prices provided via ICE Data Services, with a 90% weighting to the period before the NYSE close and 10% to the period after.
• The Trust's NAV per share decreased by 4.64% in the quarter, while the prior year's quarter saw a 17.59% increase, indicating a significant shift in gold market performance.
• Competitors in the gold ETF space, such as SPDR Gold Shares (GLD) and iShares Gold Trust (IAU), would also be subject to similar market price fluctuations of gold.

Related Party Transactions

• The Sponsor, Merk Investments LLC, receives a fee for its services, payable at an annualized rate of 0.25% of the Trust's NAV.
• Van Eck Securities Corporation (VanEck or Marketing Agent), an affiliate of the Sponsor, provides marketing services under an agreement where fees are payable from the Sponsor's fee.
• Affiliates of the Trustee and Custodian may act as Authorized Participants to purchase or sell gold or shares for their own accounts or for customers.

Stakeholder Impact

• Shareholders will experience a decrease in the value of their investment in the Trust due to the decline in gold prices.
• Authorized Participants will continue to engage in the creation and redemption of shares in exchange for gold.
• The Sponsor and Trustee will continue to administer the Trust according to the Trust Agreement.

Next Steps

• The Trust will continue to hold physical gold bullion.
• The Trustee will continue to value the gold held by the Trust based on the Solactive Gold Spot Index.
• The Sponsor will continue to oversee the performance of the Trustee and service providers.
• Shares will continue to be issued and redeemed by the Trust in Baskets in exchange for gold from Authorized Participants.

Key Dates

Recommendation

The filing reflects a period of gold price depreciation, leading to a decrease in the ETF's NAV. While this is a negative short-term outcome, the ETF's purpose is to track gold prices. For investors holding the ETF, the current performance is in line with the underlying asset's movement. A 'hold' recommendation is appropriate as the ETF's value is intrinsically linked to gold, and its performance is expected to mirror gold's future price action. Significant changes in gold prices, driven by macroeconomic factors, would be the primary determinant for future recommendations.

Keywords

Gold ETF, OUNZ, VanEck Merk Gold ETF, Physical Gold, Commodity ETF, SEC Filing, 10-Q, Investment Company, Gold Bullion, Net Asset Value