Invesco CurrencyShares® Swiss Franc Trust (FXF)

Overview

The Invesco CurrencySharesu00ae Swiss Franc Trust (FXF) is designed to track the price of the Swiss Franc relative to the U.S. dollar. It offers investors a way to gain exposure to the Swiss Franc without directly purchasing the currency.

Reputation and Reliability

Invesco is a large and well-established asset management firm with a strong reputation in the ETF market.

Management Expertise

Invesco has extensive experience in managing currency-based ETFs and a dedicated team overseeing the CurrencySharesu00ae products.

Goal

The Trust seeks to reflect the price of the Swiss Franc.

Investment Approach and Strategy

Strategy: The Trust issues shares that represent fractional ownership in its Swiss Franc holdings. The Swiss Franc is held in a custodial account.

Composition The ETF holds physical Swiss Francs in a bank account.

Market Share: FXF holds a significant market share within the single currency ETF space, specifically tracking the Swiss Franc.

Total Net Assets (AUM): 117700000

Key Competitors

• N/A

Competitive Landscape

FXF operates in a niche market as a single-currency ETF. Since it focuses exclusively on the Swiss Franc, there are no direct US-listed ETF competitors. Investors seeking currency exposure have other options like currency futures, options, or other currency ETFs focusing on different currencies. FXF's advantage lies in its simplicity and direct exposure to the Swiss Franc. Disadvantages include exposure only to one currency and potential tax implications.

Historical Performance: Historical performance can be obtained from financial data providers, reviewing the ETFu2019s performance over different time periods.

Benchmark Comparison: FXF's benchmark is the spot price of the Swiss Franc against the U.S. dollar. Performance is gauged against this.

Expense Ratio: 0.004

Average Trading Volume

The average daily trading volume of FXF indicates moderate liquidity.

Bid-Ask Spread

The bid-ask spread for FXF provides insight into trading costs and is typically relatively tight.

Market Environment Factors

Factors affecting FXF include Swiss monetary policy, global economic conditions, safe-haven demand for the Swiss Franc, and interest rate differentials between Switzerland and the U.S.

Growth Trajectory

Growth trends for FXF depend on investor sentiment towards the Swiss Franc and its role as a safe-haven currency. Changes in strategy and holdings are minimal as the ETF aims to mirror the currency's performance.

Competitive Edge

FXF's main advantage is its simplicity and direct exposure to the Swiss Franc. It provides a straightforward way for investors to access the currency market without using futures or options. The trust structure is transparent and secure, offering a convenient tool for currency diversification or hedging. FXF allows investors to easily express a view on the Swiss Franc's value against the U.S. dollar. It may also offer investors more security over offshore accounts as it is US listed.

Volatility

FXF's volatility is tied to the volatility of the Swiss Franc, which can fluctuate based on global economic and political events.

Market Risk

Risks include currency fluctuations, changes in Swiss monetary policy, and global economic downturns that could impact the Franc's value.

Ideal Investor Profile

The ideal investor is seeking currency diversification, a hedge against U.S. dollar weakness, or exposure to a safe-haven asset. Investors who are bullish on the Swiss Franc or have international liabilities denominated in Swiss Francs are also ideal investors.

Market Risk

FXF is suitable for both active traders seeking short-term currency exposure and long-term investors looking for diversification or hedging purposes.

The Invesco CurrencySharesu00ae Swiss Franc Trust (FXF) offers a straightforward and liquid way to gain exposure to the Swiss Franc. Its performance is closely linked to the value of the Swiss Franc against the U.S. dollar, making it suitable for currency diversification or hedging purposes. The ETF is a good fit for investors seeking a safe-haven asset or who have specific views on the Swiss Franc. However, investors should be aware of the inherent risks associated with currency fluctuations and global economic conditions. Given it is an ETF that tracks a single currency it has a limited investor base.

Data Sources:

• Invesco Official Website
• Financial News Outlets

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor.