Franklin Responsibly Sourced Gold ETF is a passive exchange-traded fund that holds physical gold bullion. The fund tracks the price of gold, minus expenses, by providing investors with fractional ownership of its physical holdings. The fund specifically holds gold bars refined on or after January 1, 2012, that comply with the London Bullion Market Association’s Responsible Gold Guidance. Franklin Holdings, a subsidiary of Franklin Resources, sponsors the fund. The fund operates without active management or employees. Authorized Participants create and redeem shares in large blocks in exchange for physical gold, while retail and institutional investors trade shares on the NYSE Arca. The business model centers on an annual sponsor fee of 0.15% of daily NAV. This fee covers all operating costs, such as custody and administration. The fund pays this fee by selling small amounts of its gold bullion, which causes the amount of gold represented by each share to decline over time. Because gold pays no dividends or interest, the fund generates no investment income, and its value fluctuates based on gold price movements. Sponsor revenue increases as the total value of assets under management grows, which is driven by rising gold prices and new share creations.