iShares S&P GSCI Commodity-Indexed Trust (GSG) risk factors, FY2025 10-K

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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. 09The Trust may be negatively impacted by the effects of geopolitical events on the global economy and markets for certain commodities, including energy, precious metals, agriculture and other sectorsNew
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 market values of the investments by the Trust may be negatively impacted by changes in interest rates, and, as a result, the value or liquidity of the cash equivalents and marketable securities of the Trust could decline, which could adversely affect the performance of the TrustNew
17. 17The 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
18. 18The Clearing FCM or an Exchange’s clearing house could fail
19. 19A failure of the Clearing FCM to segregate assets or a default of the Clearing FCM, its customers or other market participants may cause losses for the TrustNew
20. 20The Trust’s performance could be adversely affected if the Clearing FCM reduces its internal risk limits for the Trust
21. 21Recourse to the Index Sponsor may be limited
22. 22The returns on the Shares will not precisely correlate with the performance of the Index
23. 23The 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
24. 24Fees and expenses payable by the Trust are charged regardless of profitability and may result in a depletion of its assets
25. 25The Trust’s ability to operate is dependent on the Sponsor, the Trustee, the Advisor and certain other key service providers and other parties
26. 26the tax administrator, who provides tax reporting and tax administrative services
27. 27The Trust is exposed to various operational risks
28. 28The price you receive upon the sale of your Shares may be less than their NAV
29. 29The Trust is not obligated to pay periodic distributions or dividends to Shareholders
30. 30The Trust could be liquidated at a time when the disposition of its interests will result in losses to investors in Shares
31. 31The Sponsor has broad discretion to liquidate the Trust at any time
32. 32Shareholders with large holdings may choose to dissolve the Trust and thereby adversely affect your investment in the Shares
33. 33Affiliate shareholders with large holdings may choose to conduct a large sale of their Shares, which may have an adverse effect on the Shares
34. 34The Shares may not provide anticipated benefits of diversification from other asset classes
35. 35The 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
36. 36The lack of an active trading market for the Shares may result in losses on your investment at the time of disposition of your Shares
37. 37You may be adversely affected by redemption orders that are subject to postponement, suspension or rejection under certain circumstances
38. 38Competition from other commodities-related investments could limit the market for, and reduce the liquidity of, the Shares
39. 39The price of the Shares could decrease if unanticipated operational or trading problems arise
40. 40Exchange position limits and other rules may restrict the creation of Baskets and the operation of the Trust
41. 41Shareholders 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
42. 42Shareholders do not have the protections normally associated with the ownership of shares in an investment company registered under the Investment Company Act
43. 43Competing claims over ownership of relevant intellectual property rights could adversely affect the Trust or an investment in the Shares
44. 44The 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
45. 45Regulatory changes or actions may affect the Shares
46. 46NYSE Arca may halt trading in the Shares, which would adversely impact your ability to sell your Shares
47. 47The 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
48. 48Proprietary trading and other activities by Goldman Sachs and its affiliates could conflict with your interests as a Shareholder
49. 49Your tax liability could exceed cash distributions on your Shares
50. 50The 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 Trust44% rewritten
51. 51If the IRS makes audit adjustments to the Trust’s income tax returns, it may collect any resulting taxes (including any applicable penalties and interest) directly from the Trust, in which case the cash available for the distribution to the Trust’s Shareholders might be substantially reducedNew