10-Q: VanEck Merk Gold ETF Reports Strong Q3 2025 Growth

VanEck Merk Gold ETF reported significant growth in net assets and NAV per share for the quarter and nine months ended October 31, 2025, driven by appreciation in gold bullion.

Summary

• Net assets increased by 29.44% to $2,282,329,658 for the three months ended October 31, 2025, from $1,763,218,226 at July 31, 2025.
• Net assets increased by 73.61% to $2,282,329,658 for the nine months ended October 31, 2025, from $1,314,597,389 at January 31, 2025.
• NAV per share rose 21.44% to $38.51 for the three months ended October 31, 2025, from $31.71.
• NAV per share rose 42.58% to $38.51 for the nine months ended October 31, 2025, from $27.01.
• Total return at NAV was 21.44% for the three months and 42.58% for the nine months ended October 31, 2025.
• Net change in unrealized appreciation on gold bullion was $381,835,332 for the three months and $612,916,170 for the nine months ended October 31, 2025.
• The Trust's primary objective is to provide investors with an opportunity to invest in gold through shares and be able to take delivery of physical gold bullion and gold coins.
• The Trust changed its name from VanEck Merk Gold Trust to VanEck Merk Gold ETF, effective August 30, 2024.
• The pricing index for gold valuation changed to the Solactive Gold Spot Index from the LBMA Gold Price, effective August 7, 2023.

Sentiment

Score: 9

Explanation: The Trust demonstrated exceptional financial performance with substantial increases in net assets, NAV per share, and total return, primarily due to significant unrealized appreciation in gold bullion. The consistent low expense ratio further supports a very positive outlook.

Positives

• Substantial increase in Net Assets: 29.44% for the quarter and 73.61% for the nine months ended October 31, 2025.
• Strong NAV per share growth: 21.44% for the quarter (from $31.71 to $38.51) and 42.58% for the nine months (from $27.01 to $38.51) ended October 31, 2025.
• Significant net change in unrealized appreciation on gold bullion: $381,835,332 for the quarter and $612,916,170 for the nine months ended October 31, 2025.
• High total return at net asset value: 21.44% for the quarter and 42.58% for the nine months ended October 31, 2025.
• Consistent low expense ratio: Net investment loss and net expenses remained at 0.25% of average net assets.
• Increased gold bullion holdings: From 469,450 fine ounces at January 31, 2025, to 570,608 fine ounces at October 31, 2025.

Negatives

• Net investment loss due to Sponsors fees: $(1,280,422) for the three months and $(3,254,376) for the nine months ended October 31, 2025.
• NAV per share increased slightly less than the price per ounce of gold on a percentage basis due to Sponsors fees.
• Redemptions of shares: (953,482) shares for $29,839,734 for the nine months ended October 31, 2025.

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 Trust's expenses.
• Factors that could affect the price of gold include global gold supply and demand, investors' expectations with respect to inflation, currency exchange rates, interest rates, investment and trading activities of hedge funds and commodity funds, and global or regional political, economic, or financial events and situations.
• There is no assurance that gold will maintain its long-term value in terms of purchasing power in the future.
• In the event that the price of gold declines, the value of an investment in the shares is expected to decline proportionately.
• It is unlikely, but possible, that the Solactive Index calculation could not be performed on a given trading day if ICE Data Services (IDS) is unable to publish pricing information for XAU.
• If a redemption of Shares results in the delivery of gold to an Individual Retirement Account (IRA) or Tax-Qualified Account, that exchange would constitute the acquisition of a collectible, potentially triggering a taxable distribution from the account.

Future Outlook

Forward-looking statements in the report relate to future events or performance, including potential changes in commodity prices and market conditions for gold and the shares, the operations of the Trust, and the plans of the Sponsor. These statements are based on the Sponsor's assumptions and analyses of historical trends, current conditions, and expected future developments. Actual events or results may differ materially due to various risks and uncertainties, such as general economic, market, and business conditions, changes in laws or regulations, and global economic and political developments. Neither the Trust nor the Sponsor undertakes any obligation to update these forward-looking statements, except as legally required.

Management Comments

• The increase in the Trust's NAV in the quarter ended October 31, 2025 resulted from an increase in the value of investments in gold bullion as compared to the prior period.
• The Trust's NAV per share increased slightly less than the price per ounce of gold on a percentage basis due to the Sponsor's fees.

Industry Context

The Trust's performance is directly correlated with the price of gold bullion. The significant increases in net assets and NAV per share reflect a strong upward trend in the gold market during the reported periods. The adoption of the Solactive Gold Spot Index for gold valuation, replacing the LBMA Gold Price, indicates an alignment with a pricing mechanism that aims to reflect the gold spot price at the close of NYSE trading, potentially offering a more U.S. market-centric benchmark. The unique feature of allowing physical gold delivery differentiates this ETF from many others, catering to investors seeking direct physical exposure.

Comparison to Industry Standards

• The filing does not provide specific comparisons to other gold ETFs or industry benchmarks beyond its own historical performance and the gold price itself.
• The expense ratio of 0.25% is a key metric for ETFs, but no direct comparison to competitors' expense ratios is made within the filing.

Corporate Governance

Related Party Transactions

• Sponsors fees are paid to Merk Investments LLC, the Sponsor of the Trust.
• A Marketing Agent Agreement exists with Van Eck Securities Corporation (VanEck), where VanEck provides marketing assistance and its fees are paid from the Sponsor's fee.
• Affiliates of The Bank of New York Mellon (Trustee) and JPMorgan Chase Bank, N.A. (Custodian) may act as Authorized Participants to purchase or sell gold or shares for their own account or as agents.

Stakeholder Impact

• Shareholders: Directly benefit from the appreciation of gold prices, reflected in increased NAV per share and total return. They bear the Sponsors fees, which slightly reduce the performance relative to raw gold price. They have the option to take physical delivery of gold.
• Sponsor (Merk Investments LLC): Receives fees based on the Trust's NAV, benefiting from asset growth. Responsible for overseeing the Trust and assuming most administrative and marketing expenses.
• Marketing Agent (Van Eck Securities Corporation): Receives fees from the Sponsor for marketing assistance, benefiting from increased share sales.
• Authorized Participants: Facilitate creation and redemption of Baskets, earning transaction fees.
• Trustee (The Bank of New York Mellon) & Custodian (JPMorgan Chase Bank, N.A.): Receive fees for their services, paid by the Sponsor.

Key Dates

Recommendation

The VanEck Merk Gold ETF has demonstrated exceptional performance, with net assets and NAV per share increasing substantially due to significant appreciation in gold bullion. The ETF provides direct exposure to physical gold with a competitive expense ratio, and its unique physical delivery option adds an attractive dimension for investors seeking direct gold ownership. Given the strong financial results and the current market conditions for gold, the ETF presents a compelling investment opportunity for those looking to gain exposure to the precious metal.

Keywords

Gold ETF, VanEck Merk Gold ETF, OUNZ, Gold Bullion, Precious Metals, Investment Fund, Exchange Traded Fund, Commodity ETF, Physical Gold, Solactive Gold Spot Index