iShares® Gold Trust Micro (IAUM)

ETF iShares® Gold Trust Micro: A Summary

Profile:

• Focus: Physical gold
• Asset allocation: 100% in gold bullion
• Investment strategy: Seeks to reflect the performance of the price of gold bullion

Objective:

• To provide investors with a convenient and cost-effective way to invest in physical gold.

Issuer:

• BlackRock iShares
• Reputation and Reliability: BlackRock is the world's largest asset manager with a long and established track record. iShares is a leading provider of Exchange Traded Funds (ETFs).
• Management: The ETF is managed by a team of experienced professionals with expertise in gold and precious metals.

Market Share:

• Gold Backed ETF Market Share: Approximately 1.27%

Total Net Assets:

• As of October 27, 2023, US$1.22 billion

Moat:

• Physical gold holdings: Provides direct exposure to gold, offering a hedge against inflation and market volatility.
• Low expense ratio: 0.15% per year, making it a cost-effective investment option.
• Liquidity: High average daily trading volume, ensuring easy entry and exit.
• Brand recognition: Backed by BlackRock and iShares, offering investor trust and stability.

Financial Performance:

• Historical performance: Has closely tracked the price of gold over time.
• Benchmark Comparison: Outperformed the S&P 500 in 2022, demonstrating its potential for diversification and risk mitigation.

Growth Trajectory:

• Gold demand: Expected to remain strong due to its safe-haven status and inflation protection.
• ETF industry growth: The ETF industry is experiencing continued growth, suggesting increased investor interest in passive investment options.

Liquidity:

• Average Trading Volume: Approximately 6.5 million shares per day
• Bid-Ask Spread: Tight spread, indicating low transaction costs.

Market Dynamics:

• Economic indicators: Rising inflation and interest rates could increase demand for gold as a hedge.
• Geopolitical uncertainties: Conflicts and global events can drive gold prices higher.
• Supply and demand: Changes in gold supply and demand can impact prices.

Competitors:

• SPDR Gold Trust (GLD) - Market Share: 38.83%
• VanEck Merk Gold Trust (OUNZ) - Market Share: 1.42%
• Invesco DB Commodity Index Tracking Fund-DBC - Market Share: 1.12%

Expense Ratio:

• 0.15%

Investment Approach and Strategy:

• Strategy: Tracks the price of gold bullion.
• Composition: 100% invested in gold bullion held in trust.

Key Points:

• Provides direct exposure to physical gold.
• Offers a hedge against inflation and market volatility.
• Low expense ratio and high liquidity.
• Backed by a reputable and experienced issuer.

Risks:

• Gold price volatility: Gold prices can fluctuate significantly, impacting the ETF's value.
• Counterparty risk: The ETF relies on the custodian bank to safely store the gold bullion.
• Market risk: General market conditions can affect the ETF's performance.

Who Should Consider Investing:

• Investors seeking a hedge against inflation and market volatility.
• Investors looking for portfolio diversification.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI:

7.5/10

The AI-based rating considers the ETF's strong financial performance, competitive advantages, and reputable issuer. However, the rating is slightly lowered due to the inherent volatility associated with gold investments.

Resources and Disclaimers:

• https://www.ishares.com/us/products/239723/ishares-gold-trust-micro-fund
• https://finance.yahoo.com/quote/IAUM/
• https://www.blackrock.com/us/individual/products/ishares-gold-trust-micro-fund

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.