10-Q: Goldman Sachs Physical Gold ETF Q1 2026 Update

Goldman Sachs Physical Gold ETF reports increased net assets and gold holdings in Q1 2026, driven by a rise in gold prices.

Summary

• The Goldman Sachs Physical Gold ETF (AAAU) reported its financial results for the quarter ended March 31, 2026.
• Net assets increased to $2,819,811,797 from $2,542,528,842 at the end of 2025.
• The Trust's holdings increased to 611,991.8 ounces of gold, valued at $2,820,272,587, compared to 590,283.0 ounces valued at $2,542,909,779 at the end of 2025.
• Net increase in net assets from operations for the quarter was $164,120,086.
• The Net Asset Value (NAV) per Share rose to $45.46 from $42.51 at the end of 2025.
• Total return at NAV was 6.94% for the quarter, while total return at market value was 8.55%.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive filing, reflecting strong performance driven by the appreciation of gold prices and an increase in net assets and holdings.

Positives

• Increase in Net Assets: Net assets grew by over $277 million during the quarter, reaching $2,819,811,797.
• Growth in Gold Holdings: The Trust increased its physical gold holdings to 611,991.8 ounces.
• Appreciation in Gold Value: The fair value of the Trust's gold holdings increased significantly due to rising gold prices.
• Positive Net Investment Income: The Trust reported a net increase in net assets from operations of $164,120,086 for the quarter.
• Rising NAV per Share: The Net Asset Value per Share increased to $45.46, indicating growth for shareholders.

Negatives

• Sponsor Fee Expense: The Trust incurred a sponsor fee of $1,312,899 for the quarter, which reduces overall returns.
• Market Value vs. NAV Discrepancy: Total return at market value (8.55%) was higher than at NAV (6.94%), suggesting a premium to NAV for shares during the period.

Risks

• Fluctuations in Gold Price: The value of the Trust's Shares is directly tied to the price of gold, which is subject to volatility due to global supply and demand, inflation expectations, currency exchange rates, interest rates, and geopolitical events.
• Concentration Risk: The Trust's sole investment is in gold bullion, leading to a high concentration of risk.
• No Assurance of Long-Term Value: There is no guarantee that gold will maintain its long-term purchasing power.

Future Outlook

The Trust's investment objective is for the Shares to reflect the performance of the price of gold less the expenses of the Trust's operations. Future performance is therefore directly linked to the price of gold.

Management Comments

• The Trusts investment objective is for the Shares to reflect the performance of the price of gold less the expenses of the Trusts operations.
• The Sponsor Fee accrues daily at an annualized rate equal to 0.18% of the daily Net Asset Value of the Trust.
• The Sponsor has agreed to assume and be responsible for the payment of most of the expenses incurred by the Trust, up to a specified Fee Cap.

Industry Context

StockSavvy.ai notes that this filing reflects the performance of a physically-backed gold ETF, whose value is intrinsically tied to the spot price of gold. In Q1 2026, the significant increase in the value of gold holdings indicates a favorable market environment for gold as an asset class, potentially driven by macroeconomic factors such as inflation concerns or geopolitical uncertainty, which typically drive demand for safe-haven assets.

Comparison to Industry Standards

• The expense ratio of 0.18% for the Sponsor Fee is competitive within the gold ETF industry. For example, other major physically-backed gold ETFs often have expense ratios in a similar range, typically between 0.15% and 0.40%.
• The Trust's NAV per share increased by approximately 6.94% (at NAV) during the quarter. This performance is in line with the general upward trend observed in gold prices during the first quarter of 2026, as reported by various financial news outlets and commodity market analysts.
• The Trust's holdings of 611,991.8 ounces of gold are substantial and comparable to other large-scale physically-backed gold ETFs, indicating significant market presence and investor confidence.

Related Party Transactions

• A Sponsor Fee is paid to Goldman Sachs Asset Management, L.P. (the Sponsor) at an annualized rate of 0.18% of the Trust's Net Asset Value.
• The Sponsor assumes responsibility for various expenses of the Trust, up to a Fee Cap.
• Affiliates of the Trustee (The Bank of New York Mellon) may act as Authorized Participants or trade gold and Trust Shares.

Stakeholder Impact

• Shareholders: Benefit from the appreciation of gold prices, reflected in the NAV per Share and total return. Potential for capital gains if gold prices continue to rise.
• Sponsor (Goldman Sachs Asset Management, L.P.): Receives a Sponsor Fee for its services.
• Trustee (The Bank of New York Mellon): Receives fees for its administrative and custodial services.
• Authorized Participants: Facilitate the creation and redemption of Shares, benefiting from arbitrage opportunities.

Next Steps

• The Trust will continue to hold physical gold bullion meeting London Good Delivery Standards.
• The Trust will continue to issue and redeem Shares in Baskets in exchange for gold with Authorized Participants.
• The Sponsor will continue to accrue and pay the Sponsor Fee.
• Investors are advised to monitor gold price movements as they directly impact the Trust's performance.

Key Dates

Recommendation

The filing shows expected performance in line with gold prices, with positive growth in assets and NAV. However, as a passive gold-tracking ETF, its performance is entirely dependent on the volatile gold market. While the current trend is positive, the inherent risks of commodity price fluctuations warrant a 'hold' recommendation, advising investors to maintain their current positions rather than initiating new ones without further market analysis.

Keywords

Gold ETF, Physical Gold, Goldman Sachs, AAAU, Quarterly Report, SEC Filing, 10-Q, Investment Fund, Precious Metals, Commodities