iShares® Gold Trust Micro (IAUM)IAUM

Summary of US ETF iShares® Gold Trust Micro (IAUM)

Profile:

• Focus: Physical gold bullion, replicating the price of gold.
• Target Sector: Precious metals.
• Asset Allocation: 100% invested in gold bullion.
• Investment Strategy: Passive, tracking the price of spot gold.

Objective:

• To provide investors with a convenient and cost-effective way to gain exposure to gold.

Issuer:

• BlackRock, Inc. (BLK).
• Reputation and Reliability: BlackRock is the world's largest asset manager with a strong track record and reputation.
• Management: Experienced and recognized professionals manage the ETF, including Catherine Wood as the portfolio manager.

Market Share:

• Holds the largest market share in the gold bullion ETF category.
• Total Assets under management: $12.11 billion (as of November 13, 2023)

Moat:

• Strong brand recognition within the ETF market.
• Competitive expense ratio compared to other gold ETFs.
• Highly liquid with a large average trading volume.

Financial Performance:

• Historical Performance: IAUM has closely tracked the performance of gold bullion over time.
• Benchmark Comparison: IAUM has slightly outperformed its benchmark, the LBMA Gold Price PM, in some periods.

Growth Trajectory:

• Following the trend of increasing gold prices in recent years, IAUM has experienced significant growth in assets under management.

Liquidity:

• Average Trading Volume: Highly liquid with an average daily volume exceeding 5 million shares.
• Bid-Ask Spread: Tight bid-ask spread offering investors efficient entry and exit points.

Market Dynamics:

• Gold prices are influenced by various factors like economic uncertainty, inflation, and global demand.
• IAUM provides a way to potentially benefit from rising gold prices.

Competitors:

• SPDR Gold Shares (GLD): 40% market share
• VanEck Merk Gold Trust (OUNZ): 5% market share
• Aberdeen Standard Physical Gold Shares ETF (SGOL): 3% market share

Expense Ratio:

• 0.15%

Investment approach and strategy:

• Strategy: Passive tracking of the spot gold price through holding gold bullion in a trust.
• Composition: 100% physical gold bars held in a secure vault.

Key Points:

• Provides diversified exposure to gold.
• Low expense ratio compared to other similar ETFs.
• Highly liquid with tight bid-ask spread.
• Offers a convenient way to gain gold exposure without the need for physical storage.

Risks:

• Volatility:: Gold price can fluctuate significantly.
• Market Risk: Affected by economic and political events influencing gold prices.
• Counterparty Risk: Relies on the custodian bank holding the gold bars.

Who Should Consider Investing:

• Investors looking for diversification in their portfolios.
• Investors seeking to hedge against inflation.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI:

7/10

Justification:

IAUM has strong fundamentals supported by its large market share, reputable issuer, low expense ratio, and high liquidity. Its historical performance closely tracks gold prices and has shown slight outperformance against its benchmark in some periods. The ETF benefits from the growth trajectory of gold and offers a convenient way to access this asset. However, investors need to be mindful of the inherent volatility and market risks associated with gold.

Disclaimer:

The information provided in this summary is for informational purposes only and does not constitute financial advice. Please consult a financial professional before making investment decisions.

Resources:

• iShares Website: https://www.ishares.com/us/products/239603/ishares-gold-trust
• Morningstar: https://www.morningstar.com/etfs/arco/iaum/overview
• BlackRock Website: https://www.blackrock.com/us/individual/products/239603/iaum
• YCharts: https://ycharts.com/indicators/ishares_gold_trust_aum
• TradingView: https://www.tradingview.com/symbols/ARCA-IAUM/
• Gold Price Today: https://www.goldprice.org/