VanEck Merk Gold ETF (OUNZ) 2026 Annual Report: Business Overview, Risks, and Cybersecurity Practices

VanEck Merk Gold ETF Annual Report: Key Insights for Investors

Summary of Key Report Highlights

Fiscal Year End: January 31, 2026
Trading Symbol: OUNZ
Exchange: NYSE Arca
Total Shares Outstanding (as of March 25, 2026): 63,171,210
Estimated Public Float: \$1,752,291,265.90
Filer Category: Large Accelerated Filer
Management: Sponsor is Merk Investments LLC, with \$3.7 billion in assets under management
Primary Trust Objective: Allow investors to invest in gold via shares, with the ability to take delivery of physical gold
Secondary Objective: Shares reflect gold price performance, less Trust expenses; Trust is not actively managed

Important Shareholder Information & Price Sensitive Issues

Direct Price Sensitivity to Gold

The value of VanEck Merk Gold ETF shares is directly linked to the price of gold. Fluctuations in gold prices—whether caused by global supply/demand, central bank activity, inflation expectations, currency volatility, interest rates, or macroeconomic events—will directly impact the ETF’s share price. The report emphasizes that gold prices have been highly volatile in recent years, exposing investors to risk of loss regardless of holding period.

Trust Structure & Shareholder Rights

Shares can be redeemed for physical gold, but only by Authorized Participants and under certain circumstances.
Investors do not have traditional corporate voting rights; only holders of at least 25% of shares can require the Trustee to cure breaches, and holders of at least 75% can require termination of the Trust Agreement.
Shares are not entitled to conversion or pre-emptive rights; all shares are of one class, fully paid and non-assessable.

Risks That May Affect Share Value

Gold Price Volatility: Significant price swings, and periods of stagnation or decline, can result in losses for shareholders.
Central Bank Activity: Large-scale sales of gold by central banks, governments, or multi-lateral institutions can flood the market and depress gold prices, impacting the ETF.
Trust Expenses: Payment of sponsor fees in shares and sales of gold to cover expenses will decrease the gold backing each share, potentially lowering share value unless gold prices rise to compensate.
Trading & Liquidity Risks: Shares may trade at a discount or premium to NAV, especially during periods of market stress or limited liquidity. Absence of an active trading market can adversely affect price and liquidity.
Competition: Other gold investment vehicles, such as ETVs (exchange traded vehicles), direct gold investments, and gold industry securities, may attract investor capital and reduce demand for OUNZ shares.
Financial Crises: Large-scale distress or liquidation sales could depress gold prices and ETF value.
Operational Risks: Unanticipated trading or operational issues, withdrawal of major Authorized Participants, or difficulties in creation/redemption processes may reduce liquidity and decouple share price from gold value.
Custody Risks: Risks related to storage, insurance, and delivery of physical gold, including potential losses during delivery.
Cybersecurity Risks: Disruptions in information systems, cyber incidents, and erroneous trades or recordkeeping could impact Trust operations and investor records.
Regulatory Risks: The Trust is not registered under the Investment Company Act of 1940 or regulated by the Commodity Exchange Act, meaning shareholders lack protections associated with such registrations.
Termination Risks: The Trust may be required to terminate and liquidate at a time disadvantageous to shareholders, such as during periods of low gold prices.

Tax Considerations

U.S. investors are treated as directly owning a pro-rata share of the Trust’s gold and income for federal tax purposes.
Tax treatment varies based on individual circumstances; the Trust is not considered a regulated investment company under IRS rules.
Investors may face a maximum 28% long-term capital gains rate on gold, plus a 3.8% tax on net investment income for individuals above certain thresholds.
Brokerage and Trust expense fees affect tax basis and deductibility; some expenses may be nondeductible for individuals.
Tax-exempt investors and retirement plans face special rules; direct investment in physical gold may trigger adverse tax consequences for IRAs.
Non-U.S. investors face potential U.S. estate tax and information reporting/withholding requirements.

Forward-Looking Statements & Caution

The report contains numerous forward-looking statements regarding gold prices, Trust operations, regulatory changes, and economic conditions. Actual outcomes may differ materially from projections.

Key Features for Investors

Physical Gold Access: Investors can take delivery of physical gold, subject to application and payment of processing/delivery fees.
Cost Efficiency: Trust expenses are shared among all investors, potentially lowering the cost compared to individual physical gold investment.
Transparency: The Sponsor provides annual and quarterly reports online and via SEC’s EDGAR system.

Potential Price-Moving Factors

Any material change in global gold supply/demand dynamics, central bank policies, or macroeconomic events can impact share price.
Significant redemptions or creation activity, operational disruptions, or cyber incidents may affect liquidity and ETF value.
Regulatory changes, including trade barriers, tariffs, or new tax laws, could alter gold prices and investor returns.
Termination or liquidation of the Trust, whether voluntary or required, may result in unfavorable outcomes for shareholders.

Disclaimer

This article is intended for informational purposes only and does not constitute investment advice. The information provided is based on the VanEck Merk Gold ETF Annual Report for the fiscal year ended January 31, 2026. Investors should consult their own financial, tax, and legal advisers prior to making any investment decision. The value of ETF shares is subject to market risks, including the price volatility of gold and operational risks described in the report. Past performance is not indicative of future results.