Conquer Currencies

Product attributes

The CurrencyShares products are intended to provide institutional and retail investors with a simple, cost-effective means of gaining potential investment benefits similar to those of holding the foreign currency  indicated in each trust's name.

Easily accessible

Investors will be able to access the currency market through a traditional brokerage account. When admitted to trading, shares of each CurrencyShares trust are bought and sold on the NYSE Arca like any other exchange-listed security, except that they can regularly be traded until 4:15 p.m. ET instead of 4:00 p.m. ET.

Depository

The foreign currency deposited with each trust is held at a depository (JPMorgan Chase Bank, N.A., London Branch).

Cost-effective

Because shares of each trust are traded as securities, transaction costs may be substantially reduced. However, since ordinary brokerage commissions apply for each buy and sell transaction, frequent trading activity may increase the cost of the trust.

Exchange-traded

Because shares of each CurrencyShares trust are traded on the NYSE Arca, the shares may provide investors with an efficient means of implementing investment tactics and strategies that involve foreign currencies. NYSE Arca-listed securities are eligible for margin accounts. Accordingly, investors are able to purchase and hold shares with borrowed money to the extent permitted by law.

Liquid

The liquidity of the shares of each CurrencyShares trust comes not only from the secondary trading on the NYSE Arca, but also from the creation and redemption features. Shares of each trust can be created and redeemed in baskets of 50,000 shares by Authorized Participants, which creates liquidity.

Transparent

The assets of each trust back the shares, and each trust does not hold or employ any derivative securities. The trust discloses its full portfolio holdings daily.

Flexible

The CurrencyShares products are listed on the NYSE Arca and trade the same way ordinary stock does.

It is possible to buy and sell shares of each CurrencyShares trust continuously throughout the trading day on the NYSE Arca at prices established by the market. Additionally, it is possible to place market, limit and stop loss order for the shares of each trust.

The CurrencyShares products are intended to offer investors a new and different opportunity to participate in the foreign currency market through an investment in securities. Historically, the logistics and expense of investing in foreign exchange have been a barrier to entry for many investors. The CurrencyShares products are aimed at overcoming the barriers to entry. A prospective purchaser of CurrencyShares should not encounter any tasks or costs beyond those associated with purchasing another publicly-traded equity security. CurrencyShares are intended to provide institutional and retail investors with a simple, cost-effective means of gaining potential investment benefits similar to those of holding foreign currency.

An investment in CurrencyShares may help to balance a portfolio or help protect against currency swings, thereby reducing overall risk potential. All forms of investment, however, carry some degree of risk. Investing in CurrencyShares carries the same risks as investing directly in foreign currency.

Investors may wish to invest in foreign currency in order to take advantage of short-term tactical or long-term strategic opportunities. From a tactical perspective, an investor that believes that the U.S. dollar is weakening relative to a particular foreign currency may choose to buy shares of that particular CurrencyShares trust in order to capitalize on the potential movement. An investor that believes that a particular foreign currency is overvalued relative to the U.S. dollar may choose to sell shares of that particular CurrencyShares trust.

From a strategic standpoint, since currency movements can affect returns on cross-border investments and businesses, both individual investors and businesses may choose to hedge their currency risk through the purchase or sale of foreign currency. For example, in the case where a U.S. investor has a portfolio consisting of European equity and fixed income securities, the investor may decide to hedge the currency exposure that exists within the European portfolio by selling an appropriate amount of shares of the CurrencyShares Euro trust. Such sales may include short sales in accordance with applicable Securities and Exchange Commission (SEC) regulations. In doing this, the U.S. investor may be able to mitigate the impact that changes in exchange rates have on the returns associated with the European equity and fixed income components of the portfolio.

Similarly, a business that has currency exposure because it manufactures or sells its products abroad is exposed to exchange rate risk. Buying or selling shares of one or more CurrencyShares trusts in appropriate amounts may reduce the business's exchange rate risk.

More generally, investors that wish to diversify their investment portfolios with a wider range of non-correlative investments may desire to invest in foreign currencies. Non-correlative asset classes, such as foreign currencies, are often used to enhance investment portfolios by making them more consistent and less volatile. Less volatility means lower risk and closer proximity to an expected return.

Risks to consider

The value of the shares of each CurrencyShares trust is tied to the value of a specific currency that is held by the trust. Fluctuations in the price of the currency could materially and adversely affect the value of the applicable trust's shares. Several factors may affect the price of foreign currency relative to the U.S. dollar including:

  • National debt levels and trade deficits
  • Domestic and foreign inflation rates and investors' expectations concerning inflation rates
  • Domestic and foreign interest rates and investors' expectations concerning interest rates
  • Investment and trading activities of mutual funds, hedge funds and currency funds; and
  • Global or regional political, economic or financial events and situations

In addition, the currency in any CurrencyShares trust may not maintain its long-term value in terms of purchasing power in the future. When the price of the currency declines, the price of a share would likely decline as well.

Each prospectus contains more complete information about the specific CurrencyShares trust. Investors should carefully consider the investment objectives, risks, charges and expenses of each CurrencyShares trust before investing. The risks associated with each of the CurrencyShares trusts, as well as other considerations. For a more complete discussion of risk factors applicable to each CurrencyShares trust, carefully read the particular trust's prospectus.

 How are shares of the CurrencyShares offered?

Each CurrencyShares trust issues shares that represent units of fractional undivided beneficial interest in, and ownership of, the trust. Shares may be purchased from each trust only in one or more blocks of 50,000 Shares, called "baskets". The trusts issue shares in baskets on a continuous basis to authorized participants (Depository trust Company participants that are registered broker-dealers or other securities market participants, such as a bank or other financial institution, that are not required to register as a broker-dealer to engage in securities transactions, and that has entered into a participant agreement with the trustee). It is expected that shares of each trust will be offered and sold to the public by authorized participants at varying prices in U.S. dollars to be determined by reference to, among other things, the market price of the currency held by the particular trust and the trading price of the shares on the NYSE Arca at the time of each sale. Authorized Participants will not receive from the trust, the Sponsor or any of their affiliates, any fee or other compensation in connection with the sale of shares, although they may receive commissions or fees from investors who purchase shares through their commission- or fee-based brokerage accounts.

 How are shares of each CurrencyShares product traded?

Shares of each CurrencyShares product will trade like any stock or traditional exchange traded fund on the NYSE Arca. They are available in margin accounts and can be sold short (even on a downtick). The shares will also have other brokerage features such as the ability to place market, limit or stop-loss orders. The shares will have a bid/ask spread and will be subject to a per-share commission charge or wrap fee charge (depending on the account).

 Are the products benchmarked to an index?

No. Each trust only holds the foreign currency indicated by the trust's name in a bank account with JPMorgan Chase Bank, N.A., London Branch. The trust does track the price of the underlying currency based on the World Markets Company PLC ("WM") Closing Spot Rate. The trustee will calculate, and the Sponsor will publish, each trust's net asset value ("NAV") each business day. The NAV of each trust is the aggregate value, expressed in U.S. dollars, of the trust's assets. The NAV will be expressed in U.S. dollars based on the World Markets Company PLC ("WM") Closing Spot Rate. The World Markets Company PLC ("WM") Closing Spot Rate is the exchange rate of the U.S. dollar and the applicable foreign currency as determined by World Markets Company PLC ("WM") as of 4:00 pm London time.

 Where can I get foreign currency pricing or additional information on the value of CurrencyShares?

Invesco provides the spot price of each foreign currency held by the CurrencyShares trusts in real-time on this web site. The spot price is the current price at which a particular security can be bought or sold at a specified time and place. The indicative value will also be provided on a real-time and delayed basis along with other product information, including a delayed last trade and the number of currency units per share.

 Are the CurrencyShares products registered under the Investment Company Act of 1940?

No, and therefore they are not managed like mutual funds. Rather, the CurrencyShares trusts are exchange traded products that are registered under the Securities Act of 1933 and the Securities Exchange Act of 1934, and accordingly are subject to SEC prospectus delivery and periodic reporting requirements.

 Is there a portfolio manager?

No. Each CurrencyShares trust holds only the foreign currency indicated in the trust name. None of the CurrencyShares trusts are actively managed. The trustee (Bank of New York Mellon) is responsible for the day-to-day administration of each trust; the depository (JPMorgan Chase, London) will accept deposits of the appropriate foreign currency for each CurrencyShares trust and facilitate the transfer of the foreign currency into and out of the trust.

 What is the investment objective of the CurrencyShares trusts?

The investment objective of each CurrencyShares trust is for the Shares of that trust to reflect the price of the currency held by the trust. Earning income for shareholders is not the objective of any trust. Whether investors earn income will primarily depend on the relative value of the currency held by the trust and the U.S. dollar. If the currency held by a trust appreciates relative to the U.S. dollar and a shareholder sells shares, the shareholder will earn income. If the currency held by a trust depreciates relative to the U.S. dollar and a shareholder sells shares, the shareholder will incur a loss.

 What expenses will shareholders of the CurrencyShares trusts incur?

The trust's only ordinary recurring expense is expected to be the sponsor's fee. The Sponsor's fee accrues daily at an annual nominal rate of 0.40% of the currency in the trust and is paid monthly. To pay the Sponsor's fee, the trustee will first use interest earned by the trust. If that is not sufficient to pay the Sponsor's fee, then the trustee will withdraw currency deposited in the trust as needed. The Sponsor is obligated to pay various administrative and marketing expenses of the trust out of the fee that it earns. The trusts may incur extraordinary expenses in addition to the Sponsor's fee; if these additional expenses are incurred, the trust will be required to pay these expenses by withdrawing deposited currency and the amount of currency represented by a Share would decline. Accordingly, the Shareholders will effectively bear the cost of these other expenses, if incurred. This may also result in adverse tax consequences for shareholders.

 What are the tax implications for investors?

Shareholders of each CurrencyShares trust will be treated for U.S. federal income tax purposes as if they owned a pro rata share of the assets held by the particular trust. Because of this, the income and expense's of each trust "flow through" to the trust's shareholders. Shareholders will be required to recognize gains or losses when the trust converts the foreign currency it holds to U.S. dollars to pay the Sponsor's fee or to make distributions to the trust's shareholders. Shareholders should refer to the applicable CurrencyShares trust prospectus for important tax information.

Invesco CurrencyShares products offer investors and institutions a convenient and cost-effective method of gaining potential investment benefits similar to that of holding foreign currencies. The foreign currencies market is the largest and most liquid financial market in the world.*

* Source: Bank of International Settlements, “Triennial Central Bank Survey” March 2016

Invesco CurrencyShares® Australian Dollar Trust (FXA)

Overview | Prospectus

CurrencyShares Australian Dollar Trust is designed to track the price of the Australian Dollar.

Invesco CurrencyShares® British Pound Sterling Trust (FXB)

Overview | Prospectus

CurrencyShares British Pound Sterling Trust is designed to track the price of the British Pound Sterling.

Invesco CurrencyShares® Canadian Dollar Trust (FXC)

Overview | Prospectus

CurrencyShares Canadian Dollar Trust is designed to track the price of the Canadian Dollar.

Invesco CurrencyShares® Euro Trust (FXE)

Overview | Prospectus

CurrencyShares Euro Trust is designed to track the price of the Euro.

Invesco CurrencyShares® Japanese Yen Trust (FXY)

Overview | Prospectus

CurrencyShares Japanese Yen Trust is designed to track the price of the Japanese Yen.

Invesco CurrencyShares® Swiss Franc Trust (FXF)

Overview | Prospectus

CurrencyShares Swiss Franc Trust is designed to track the price of the Swiss Franc.

Invesco DB G10 Currency Harvest Fund (DBV)

Overview | Prospectus

The Invesco DB G10 Currency Harvest Fund seeks to track changes, whether positive or negative, in the level of the Deutsche Bank G10 Currency Future Harvest Index® – Excess Return (DB G10 Currency Future Harvest Index ER) plus the interest income from the Fund's holdings of primarily US Treasury securities and money market income less the Fund's expenses. The Fund is designed for investors who want a cost effective and convenient way to invest in currency futures. The Index is composed of currency futures contracts on certain G10 currencies and is designed to exploit the trend that currencies associated with relatively high interest rates, on average, tend to rise in value relative to currencies associated with relatively low interest rates.

Invesco DB US Dollar Bearish Fund (UDN)

Overview | Prospectus

The Invesco DB US Dollar Index Bearish Fund (Symbol: UDN) seeks to track changes, whether positive or negative, in the level of the Deutsche Bank Short USD Currency Portfolio Index - Excess Return™ (DB Short USD Currency Portfolio Index ER) plus the interest income from the Fund's holdings of primarily US Treasury securities and money market income less the Fund's expenses. The Fund is designed for investors who want a cost effective and convenient way to track the value of the U.S. dollar relative to a basket of the six major world currencies – the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc.

Invesco DB US Dollar Bullish Fund (UUP)

Overview | Prospectus

The Invesco DB US Dollar Index Bullish Fund (Symbol: UUP) seeks to track changes, whether positive or negative, in the level of the Deutsche Bank Long USD Currency Portfolio Index - Excess Return™ (DB Long USD Currency Portfolio Index ER) plus the interest income from the Fund's holdings of primarily US Treasury securities and money market income less the Fund's expenses. The Fund is designed for investors who want a cost effective and convenient way to track the value of the U.S. dollar relative to a basket of the six major world currencies - the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc.

Risk & other information

The Deutsche Bank G10 Currency Future Harvest Index® - Excess Return (DB G10 Currency Future Harvest Index ER) is composed of currency futures contracts on certain G10 currencies and is designed to exploit the trend that currencies associated with relatively high interest rates, on average, tend to rise in value relative to currencies associated with relatively low interest rates.

The Deutsche Bank Short USD Currency Portfolio Index - Excess Return™ (DB Short USD Currency Portfolio Index ER) is a rules-based index composed solely of short U.S. Dollar Index futures contracts that trade on the ICE futures exchange (USDX® futures contracts). The USDX® futures contract is designed to replicate the performance of being short the U.S. dollar against the Basket Currencies.

The Deutsche Bank Long USD Currency Portfolio Index - Excess Return™ (DB Long USD Currency Portfolio Index ER) is a rules-based index composed solely of long U.S. Dollar Index futures contracts that trade on the ICE futures exchange (USDX® futures contracts). The USDX® futures contract is designed to replicate the performance of being long the U.S. dollar against the Basket Currencies.

An investment cannot be made into an index.

The Funds are not a mutual fund or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

CurrencyShares funds:
CurrencyShares are subject to risks similar to those of stocks and may not be suitable for all investors. The value of the Shares relates directly to the value of the respective currency held by the Trust. Fluctuations in the price of the respective currency could materially and adversely affect the value of the Shares.

The respective currency's exchange rate, like foreign exchange rates in general, can be volatile and difficult to predict. This volatility could materially and adversely affect the performance of the Shares. Investment in foreign exchange related products is subject to many factors that contribute to or increase volatility, such as national debt levels and trade deficits, changes in domestic and foreign interest rates, and investors' expectations concerning interest rates, currency exchange rates and global or regional political, economic or financial events and situations.

If interest earned by the Trusts' do not exceed the Trusts' expenses, the Trustees will withdraw the currency from the Trust to pay these excess expenses, which will reduce the amount of currency represented by each Share on an ongoing basis and may result in adverse tax consequences for Shareholders.

The interest rate paid by the Depository, if any, may not be the best rate available. If the Sponsor determines that the interest rate is inadequate, then its sole recourse is to remove the Depository and terminate the Deposit Accounts.

If the Trusts incur expenses in USD, the Trusts would be required to sell the respective currency to pay these expenses. The sale of the Trust's currency to pay expenses in USD at a time of low prices of the currency could adversely affect the value of the Shares.

Substantial sales of the respective security by the official sector could adversely affect an investment in the Shares.

The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.

DB funds:
This Fund is not suitable for all investors due to the speculative nature of an investment based upon the Fund's trading which takes place in very volatile markets. Because an investment in futures contracts is volatile, such frequency in the movement in market prices of the underlying futures contracts could cause large losses. Please see the Prospectus for additional risk disclosures.

The Shares of the Funds are not deposits, interests in or obligations of any Deutsche Bank AG, Deutsche Bank AG London Branch, Deutsche Bank Securities Inc. or any of their respective subsidiaries or affiliates or any other bank (collectively, the "DB Parties") and are not guaranteed by the DB Parties.

The indices underlying the above-referenced Invesco DB funds are products of Deutsche Bank AG and/or its affiliates. Information regarding the Index is reprinted with permission. Deutsche Bank® and DB™ are trademarks of Deutsche Bank AG. The Index and trademarks have been licensed for use for certain purposes by Invesco Capital Management LLC, an affiliate of Invesco Distributors, Inc. The above-referenced funds are not sponsored, endorsed, sold or promoted by Deutsche Bank AG, Deutsche Bank AG, London Branch, Deutsche Bank Securities Inc. or any of their affiliates ("Deutsche Bank") or third party licensors and none of such parties makes any representation, express or implied, regarding the advisability of investing in the funds, nor do such parties have any liability for errors, omissions, or interruptions in the indices. The indices are calculated and administered by Deutsche Bank without regards to the Fund.

Invesco is not affiliated with Deutsche Bank Securities Inc., JPMorgan Chase Bank, N.A., London Branch, NYSE Arca, and World Markets Company PLC.