The iShares Physical Gold ETC (EGLN) is the euro-denominated London Stock Exchange listing of an Ireland-domiciled commodity product structured by BlackRock to provide exposure to physical gold.

The ETC seeks to track the performance of gold using the LBMA Gold Price as its benchmark. Its securities are backed by physical gold bars held in custody, allowing each security to represent a specified entitlement to the underlying metal.

EGLN provides direct exposure to gold without investing in gold-mining equities, futures contracts, or a diversified commodity portfolio. The product uses physical replication, with allocated gold backing its securities. Gold accepted by the ETC must comply with the London Bullion Market Association's Good Delivery rules.

The product uses the LBMA Gold Price as its benchmark, an international reference price for gold. As a result, its performance is primarily driven by movements in the price of the metal, net of the costs associated with the product.

Composition / Exposure Profile

Unlike an equity or fixed-income ETF, EGLN does not hold a portfolio diversified across companies, sectors, or bonds. Its exposure is concentrated in:

• Physical gold.

• The international gold market.

• The gold price represented by the LBMA Gold Price benchmark.

The product is backed by physical gold bars held in custody. Its performance is therefore primarily linked to movements in international gold prices, which can be influenced by factors such as interest rates, inflation, monetary policy, economic conditions, investor and central bank demand, and geopolitical events.

Because gold does not generate cash flows, the ETC's return is primarily derived from changes in the price of the metal, net of product costs.

Structure and Costs

EGLN is the euro-denominated London Stock Exchange ticker for the iShares Physical Gold ETC. The same product trades on the LSE in U.S. dollars under IGLN and in British pounds under SGLN. The product's base currency is the U.S. dollar.

The ETC has a total expense ratio (TER) of 0.12% per year, uses a physical metal structure and physical replication, and is issued by Ireland-domiciled iShares Physical Metals plc. The gold is held in custody by JPMorgan Chase Bank N.A., London Branch.

The iShares Physical Gold ETC is not a UCITS fund. It is a debt security structured as an ETC, although it is UCITS eligible. The product has no income distribution policy because its underlying physical gold does not generate dividends or interest.

History and Evolution of the ETC

The iShares Physical Gold ETC was launched in 2011 to provide exposure to the price of gold through a physically backed structure.

Since its launch, the product has maintained physical gold exposure linked to the LBMA Gold Price. The EGLN listing was subsequently introduced on the London Stock Exchange to allow investors to trade the product in euros.

Throughout its history, the ETC's performance has reflected different cycles in the international gold market, including periods shaped by changes in interest rates, inflation, monetary policy, precious-metal demand, and heightened economic and geopolitical volatility.

Additional Information

iShares Physical Gold ETC (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $20.66 billion.

Over the past 12 months, iShares Physical Gold ETC recorded a return of 1.22%, with its price trading between $76.80 and $106.61 during the same period.

The ETF is traded under the ticker EGLN.