Filed Pursuant To Rule 433
Registration No. 333-209926
January 12, 2017
SPDR® Gold Shares ETF
Capital Markets Perspective GLD
SPDR Gold Shares (GLD®) was the rst US-listed gold bullion-backed exchange traded fund (ETF). Other products have launched since GLDs 2004 debut, so for institutional investors, understanding that there are many factors to consider when choosing a gold ETF is of paramount importance.
Liquidity Trading Comparison
One factor to consider for institutional investors is the market GLDs higher share price is also a factor in its advantage size, because trading volume is a key determinant of cost. GLD for large investors. Compare a hypothetical $1 million dollar is the most traded gold ETF in the US, with a 12-month average investment in GLD versus IAU. The same $1 million investment daily notional trading volume 14 times higher than its buys 9,123 shares of GLD, compared to 90,253 shares of IAU. closest competitor. Because investors need to buy roughly 10 times as many shares of IAU as GLD shares for similar gold exposure, costs related to 12-Month Average Daily Notional Trading Volume bid-ask spreads and commissions are 10 times as much on IAU GLD $1,291,133,290 IAU $95,357,965 than on GLD, when those fees are paid on a per-share basis.
Source: Bloomberg Finance, L.P., State Street Global Advisors (SSGA), Gold Exposure Comparison as of 12/31/2016. GLD IAU The trading volume table above includes GLD and its biggest US-listed competitor Investment $1,000,000 $1,000,000 in terms of assets under management, the iShares Gold Trust (IAU). Inception dates: GLD: 11/18/2004, IAU: 1/21/2005. Share Price $109.61 $11.08 Bid/Ask Spread $0.01 $0.01 Trading Cost $94.82 $904.39
Higher liquidity tightens bid-ask spreads, lowering trading costs for investors, whether they are buying, selling Shares Purchased 9,123 90,253 or rebalancing. Also, each share of GLD amounts to about Source: Bloomberg Finance, L.P., SSGA, as of 12/31/2016.
10 times more gold exposure than shares of IAU, GLDs biggest competitor by assets.1 That means that for any given transaction, total per-share trading costs associated Options Liquidity with the same amount of gold exposure are about 10 times Trading GLD options is less expensive for the same reasons as less using GLD than using IAU. Thats why the bid-ask spread trading GLD shares. GLDs options market is more than 2,746 on GLD, measured in basis points, is lower than IAUs in the times larger than its closest competitor, IAU, as the table below following table. shows. The higher volume means tighter spreads and lower trading costs using GLD options versus using IAU options.
Bid/Ask Spread Comparison
GLD IAU Also, the trading costs related to options is subject to the same Share Price $109.61 $11.08 per-share realities as trading GLD shares. For the same-sized Bid/Ask Spread ($) 0.01 0.01 transaction, the total bid-ask spread costs trading GLD options Bid/Ask Spread (bps) will be about one-tenth as much as using IAU options.
Source: Bloomberg Finance, L.P., SSGA, as of 12/31/2016. Notional Options Open Interest
Share price is as of 12/31/2016. Bid/Ask Spread data is for the month of GLD $39,142,717,490 IAU $14,252,204
The table above shows GLD and its biggest US-listed competitor, the iShares Gold Source: Bloomberg Finance, L.P., SSGA, as of 12/31/2016. Trust (IAU). Inception dates: GLD: 11/18/2004, IAU: 1/21/2005.
SPDR® Gold Shares ETF Capital Markets Perspective
Securities Lending Revenue (1)At GLDs inception, each GLD share represented about 1/10 of an ounce of gold. But
accumulated expenses related to GLDs expense ratio has caused this relationship
Securities lending can potentially offset costs for institutional to shift over time. As of 12/31/2016, each GLD share equaled about 1/9.529 of
investors because of the revenues it can generate. The average an ounce of gold. After IAUs 10-for-1 share split, payable June 23, 2010, one IAU
amount on loan of GLD shares from December 2015 through share represented about 1/100 of an ounce of gold. This relationship, too, has
December 2016 was $482 million, compared to $78 million for shifted over time due to accumulated expenses related to IAUs expense ratio.
IAU. It is key to note that the gold backing GLDs shares is never As of 12/31/2016, each IAU share equaled about 1/96.26 of an ounce of gold.
traded, leased or loaned.
Securities Lending Revenue Comparison
Average Total Balance ($m) $481.85 $77.52
Average Utilization Rate (%) 19.23 23.91
Average Security Lending Fee (bps) 13.54 32.10
Source: Markit, SSGA, as of 12/31/2016.
ssga.com | spdrs.com
For investment professional use only. Not for public use. GLD is not an investment company registered under the Investment Company Act
of 1940 (the 1940 Act) and is not subject to regulation under the Commodity
Important Risk Information Exchange Act of 1936 (the CEA). As a result, shareholders of the Trust do not have
ETFs trade like stocks, are subject to investment risk, fluctuate in market value and the protections associated with ownership of shares in an investment company
may trade at prices above or below the ETFs net asset value. Brokerage commissions registered under the 1940 Act or the protections afforded by the CEA.
and ETF expenses will reduce returns. GLD shares trade like stocks, are subject to investment risk and will fluctuate in
While the shares of ETFs are tradable on secondary markets, they may not readily market value. The value of GLD shares relates directly to the value of the gold held
trade in all market conditions and may trade at significant discounts in periods of by GLD (less its expenses), and fluctuations in the price of gold could materially and
market stress. adversely affect an investment in the shares. The price received upon the sale of
There can be no assurance that a liquid market will be maintained for ETF shares. the shares, which trade at market price, may be more or less than the value of the
gold represented by them. GLD does not generate any income, and as GLD regularly
Commodities and commodity-index linked securities may be affected by changes sells gold to pay for its ongoing expenses, the amount of gold represented by each
in overall market movements, changes in interest rates, and other factors such as Share will decline over time. Investing involves risk, and you could lose money on
weather, disease, embargoes, or political and regulatory developments, as well as an investment in GLD. Please see the GLD prospectus for a detailed discussion of
trading activity of speculators and arbitrageurs in the underlying commodities. the risks of investing in GLD shares. If this is distributed electronically, the GLD
The funds presented herein have different investment objectives, costs and prospectus is available by clicking here.
expenses. Each fund is managed by a different investment firm, and the performance The World Gold Council name and logo are a registered trademark and used with the
of each fund will necessarily depend on the ability of their respective managers permission of the World Gold Council pursuant to a license agreement. The World
to select portfolio investments. These differences, among others, may result in Gold Council is not responsible for the content of, and is not liable for the use of or
significant disparity in the funds portfolio assets and performance. For further reliance on, this material.
information on the funds, please review their respective prospectuses.
Standard & Poors(®), S&P(®)and SPDR(®)are registered trademarks of Standard &
Securities lending programs and the subsequent reinvestment of the posted collateral Poors Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow
are subject to a number of risks, including the risk that the value of the investments Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been
held in the collateral may decline in value and may at any point be worth less than the licensed for use by S&P Dow Jones Indices LLC (SPDJI) and sublicensed for certain
original cost of that investment. purposes by State Street Corporation. State Street Corporations financial products
Investing in commodities entail significant risk and is not appropriate for are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their
all investors. respective affiliates and third party licensors and none of such parties make any
Important Information Relating to SPDR Gold Shares Trust: representation regarding the advisability of investing in such product(s) nor do
they have any liability in relation thereto, including for any errors, omissions, or
The SPDR Gold Trust (GLD(®)) has filed a registration statement (including interruptions of any index.
a prospectus) with the Securities and Exchange Commission (SEC) for the
offering to which this communication relates. Before you invest, you should For more information: State Street Global Markets, LLC, One Lincoln Street,
read the prospectus in that registration statement and other documents Boston, MA, 0211. T: 866 320 4053. spdrgoldshares.com.
GLD has filed with the SEC for more complete information about GLD and
this offering. You may get these documents for free by visiting EDGAR on the
SEC website at sec.gov or by visiting spdrgoldshares.com. Alternatively,
the Trust will arrange to send you the prospectus if you request it by
© 2017 State Street Corporation. All Rights Reserved.
State Street Global Advisors ID8427-IBG-22331 0117 Exp. Date: 4/30/2017
SPDR® GOLD TRUST has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the Trust and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the Trust or any Authorized Participant will arrange to send you the prospectus if you request it by calling toll free at 1-866-320-4053 or contacting State Street Global Markets, LLC, One Lincoln Street, Attn: SPDR® Gold Shares, 30th Floor, Boston, MA 02111.