VanEck Merk Gold ETF Annual Report - How They Did This Year

I’m writing this guide to help you understand how the VanEck Merk Gold ETF (ticker: OUNZ) performed this past year. My goal is to turn complex filing details into plain English, helping you decide if this fund fits your portfolio.

1. What does this fund do and how did it perform?

Think of this fund as a digital vault for gold. Instead of buying physical bars and finding a place to store them, you buy shares of OUNZ. The fund holds physical gold bars in a secure London vault, managed by JPMorgan Chase Bank, N.A.

The Big News: It was a strong year. Each share rose from $27.01 in January 2025 to $46.56 by January 31, 2026. That is a 72.4% increase, driven by the rising price of gold. Investor interest also grew, with shares outstanding rising from 48.6 million to over 62.3 million. This shows more people are buying in to gain exposure to physical assets.

2. What makes this fund different?

Many "gold" investments are just paper promises or derivatives. OUNZ is different because it is backed by actual, allocated physical gold held in a trust.

The "Gold Delivery" Perk: If you want the metal in your hand, you can apply to have the gold delivered to you. You simply need to meet the minimum share threshold, which is typically equal to one or more 1-ounce gold bars. This feature sets OUNZ apart from funds that use complex financial contracts to mimic gold prices. To keep things cost-efficient, the expenses for storing and insuring the gold—about 0.40% of the fund's value annually—are shared among all investors.

3. Why do people buy gold?

Gold is often used as a "safe-haven" asset. Unlike stocks or bonds, gold does not rely on a company’s performance or a government’s promise to pay you back. It is a physical commodity that has stored value for centuries. In 2025, investment in gold ETFs made up 16.2% of total global gold demand. This is a massive jump from 2024, as investors sought protection against inflation and global instability.

4. Financial health and risks

The fund acts as a "pass-through" vehicle: it holds gold, and you hold the shares. It is not a corporation that can go bankrupt; the assets are held in a trust for your benefit.

Key Risks to Consider:

• Price Volatility: Gold pays no dividends or interest. You only make money if the price rises. If the price of gold drops, your investment drops with it. A 10% decline in the price of gold leads to a nearly identical 10% decline in your share value.
• Fees: You pay a 0.40% annual fee for the convenience of holding gold in a brokerage account. Over time, these fees slightly reduce the amount of gold each share represents.
• Market Factors: Gold prices react to global events, central bank buying, and jewelry demand in countries like India and China. If these trends shift, or if interest rates rise, your share price will likely change accordingly.

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Final Thought for Your Portfolio: OUNZ is designed for investors who want direct exposure to physical gold without the hassle of storage. Because it doesn't pay dividends, it is generally viewed as a long-term store of value rather than a source of regular income. Before investing, consider whether you are looking for a hedge against market volatility or a way to diversify your portfolio with a physical commodity.