NEW YORK–(BUSINESS WIRE)–BlackRock announced today a 1 for 2 reverse stock split for the iShares Gold Trust (NYSE Arca: IAU), which will be effective on May 24, 2021, at market open.
“Since its inception in 2005, IAU has provided investors with a convenient, cost-effective access to physical gold. We are now seeing a shift in IAU’s investor base and in how the product is being used- expanding into a long-term buy and hold investor strategy, as well as a tool for tactical investment in gold,” said Chad Slawner, U.S. Head of iShares Product for BlackRock. “As a leader in providing access to precious metals through commodity exchange traded products, BlackRock is committed to delivering quality investment solutions that best meet clients’ needs.”
Once implemented, the reverse stock split will raise the share price of IAU and decrease the number of outstanding shares. The total value of shares outstanding and the total value of a shareholder’s investment in the fund will not be affected by the reverse split. As a result of the reverse split, a shareholder potentially could hold a fractional share, which cannot trade on the Exchange. A shareholder’s proportional fractional shares will be redeemed for cash and paid to the shareholder’s brokerage account of record. Such redemption may have tax implications for those shareholders, and a shareholder could recognize a gain or loss in connection with the redemption of the shareholder’s fractional shares.
As of February 26, 2021, IAU has $29.1bn in AUM. On May 24, 2021, the iShares Gold Trust will have a new CUSIP:
NYSE Arca Ticker IAU – Current CUSIP: 464285105; New CUSIP: 464285204
About BlackRock
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock
About iShares
iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 900+ exchange traded funds (ETFs) and $2.67 trillion in assets under management as of December 31, 2020, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock, trusted to manage more money than any other investment firm.1
