iShares S&P GSCI Commodity-Indexed Trust (GSG) risk factors, FY2024 10-K

Other

1. 01Risk Factors Relating to Commodities Markets
2. 02The value of the Shares depends on the value of Index Futures, which fluctuates based on the prices of commodity futures contracts reflected in the S&P GSCI‑ER. These prices may be volatile, thereby creating the potential for losses regardless of the length of time you intend to hold your Shares
3. 03Historical performance of the Index and the S&P GSCI-ER is no guide to their future performance or to the performance of the Shares
4. 04Commodity futures trading may be illiquid. In addition, suspensions or disruptions of market trading in the commodities markets and related futures markets may adversely affect the value of your Shares
5. 05Accordingly, these limits may result in a NAV that differs, and may differ significantly, from the NAV that would prevail in the absence of such limits. If Baskets are created or redeemed at a time when these price limits are in effect, the creation or redemption price will reflect the price limits as well
6. 06The absence of “backwardation” or the existence of “contango” in the prices of the commodities included in the S&P GSCI-ER may adversely affect the value of your Shares
7. 07Regulatory developments with respect to the futures and over-the-counter (“OTC”) derivatives markets, and in particular, with respect to speculative trading in futures contracts and OTC derivatives involving commodities and commodity indices, could adversely affect the value of your Shares
8. 08The Trust may be negatively impacted by the effects of the spread of illnesses or other public health emergencies on the global economy and the markets and service providers relevant to the performance of the Trust
9. 09Russia’s invasion of Ukraine, and sanctions brought by the United States and other countries against Russia, have resulted in significant disruptions and increased volatility in the markets for certain commodities, including energy, precious metals, agriculture and other sectors
10. 10The trading of various Index Futures presents risks unrelated to the S&P GSCI-ER that could adversely affect the value of your Shares
11. 11The S&P GSCI-ER may in the future include contracts that are not traded on regulated futures exchanges and that offer different or diminished protections to investors
12. 12Changes in the composition and valuation of the S&P GSCI-ER may adversely affect your Shares
13. 13A cessation of publication of the S&P GSCI-ER could materially and adversely affect the activities of the Trust
14. 14Futures contracts (including the Index Futures) are not assets with intrinsic value
15. 15The Trust’s trading activity in Index Futures could expose it to additional risks
16. 16The liquidation of Index Futures could expose the Trust to the effects of temporary aberrations or distortions in the market, which could adversely affect the prices at which the Trust’s Index Futures positions are liquidated
17. 17The Clearing FCM or an Exchange’s clearing house could fail
18. 18The Trust’s performance could be adversely affected if the Clearing FCM reduces its internal risk limits for the Trust
19. 19Recourse to the Index Sponsor may be limited
20. 20The returns on the Shares will not precisely correlate with the performance of the Index
21. 21The Trust is a passive investment vehicle. The Trust is not actively managed and will be affected by a general decline in the price of commodities
22. 22Fees and expenses payable by the Trust are charged regardless of profitability and may result in a depletion of its assets
23. 23The Trust’s ability to operate is dependent on the Sponsor, the Trustee, the Advisor and certain other key service providers and other parties
24. 24the tax administrator, who provides tax reporting and tax administrative services
25. 25The Trust is exposed to various operational risks
26. 26The price you receive upon the sale of your Shares may be less than their NAV
27. 27The Trust is not obligated to pay periodic distributions or dividends to Shareholders
28. 28The Trust could be liquidated at a time when the disposition of its interests will result in losses to investors in Shares
29. 29The Sponsor has broad discretion to liquidate the Trust at any time
30. 30Shareholders with large holdings may choose to dissolve the Trust and thereby adversely affect your investment in the Shares
31. 31Affiliate shareholders with large holdings may choose to conduct a large sale of their Shares, which may have an adverse effect on the Shares
32. 32The Shares may not provide anticipated benefits of diversification from other asset classes
33. 33The liquidity of the Shares may be affected by the withdrawal from participation of Authorized Participants or by the suspension of issuance, transfers or redemptions of Shares by the Trustee
34. 34The lack of an active trading market for the Shares may result in losses on your investment at the time of disposition of your Shares
35. 35You may be adversely affected by redemption orders that are subject to postponement, suspension or rejection under certain circumstances
36. 36Competition from other commodities-related investments could limit the market for, and reduce the liquidity of, the Shares
37. 37The price of the Shares could decrease if unanticipated operational or trading problems arise
38. 38Exchange position limits and other rules may restrict the creation of Baskets and the operation of the Trust
39. 39Shareholders are not entitled to the same rights as owners of shares issued by a corporation. By acquiring Shares, you are not acquiring the right to elect directors, to receive dividends, to vote on certain matters regarding the Trust or to take other actions normally associated with the ownership of common shares
40. 40Shareholders do not have the protections normally associated with the ownership of shares in an investment company registered under the Investment Company Act
41. 41Competing claims over ownership of relevant intellectual property rights could adversely affect the Trust or an investment in the Shares
42. 42The value of the Shares will be adversely affected if the Trust is required to indemnify the Sponsor, the Advisor or the Trustee or their respective agents
43. 43Regulatory changes or actions may affect the Shares
44. 44NYSE Arca may halt trading in the Shares, which would adversely impact your ability to sell your Shares
45. 45The Sponsor’s relationship with the Trustee and the Advisor and the proprietary and managed trading activities of the Sponsor and its affiliates could conflict with your interests as a Shareholder
46. 46Proprietary trading and other activities by Goldman Sachs and its affiliates could conflict with your interests as a Shareholder
47. 47Your tax liability could exceed cash distributions on your Shares
48. 48The Internal Revenue Service (the “IRS”) could adjust or reallocate items of income, gain, deduction, loss and credit with respect to the Shares if the IRS does not accept the assumptions or conventions utilized by the Trust