Invesco CurrencyShares® Swiss Franc Trust (FXF)

Overview

The Invesco CurrencySharesu00ae Swiss Franc Trust (FXF) is an exchange-traded fund designed to track the price of the Swiss franc (CHF) in U.S. dollars. It aims to provide investors with a convenient and cost-effective way to gain exposure to the Swiss franc's movements without the need for direct foreign currency trading. Its primary focus is on currency, specifically the CHF, and its investment strategy is to hold a portfolio of Swiss francs to reflect the trust's net asset value.

Reputation and Reliability

Invesco is a well-established global investment management company with a strong reputation for providing a wide range of investment products, including a significant ETF lineup. They are known for their operational efficiency and adherence to regulatory standards.

Management Expertise

Invesco ETFs are managed by experienced teams with extensive expertise in various asset classes and market strategies. While specific portfolio managers for FXF might not be publicly highlighted, the issuer's overall management competence is a key strength.

Goal

The primary investment goal of the Invesco CurrencySharesu00ae Swiss Franc Trust is to reflect the price performance of the Swiss franc (CHF) relative to the U.S. dollar (USD).

Investment Approach and Strategy

Strategy: FXF aims to track the spot price of the Swiss franc against the U.S. dollar. It does not actively manage a portfolio of underlying securities; instead, it holds physical Swiss francs in trust.

Composition The ETF's composition consists of physical holdings of Swiss francs. The trust holds a specific amount of CHF, and its net asset value fluctuates based on the exchange rate between CHF and USD.

Market Share: As a specialized currency ETF, FXF holds a significant position within the currency ETF sector, though its overall market share relative to broad-based equity or bond ETFs is considerably smaller. Precise market share data for niche currency ETFs is often proprietary or difficult to pinpoint publicly.

Total Net Assets (AUM): 439074000

Key Competitors

• Invesco CurrencySharesu00ae Euro Trust (FXE)
• Invesco CurrencySharesu00ae Japanese Yen Trust (FXY)
• WisdomTree Chinese Yuan Strategy Fund (CNY)

Competitive Landscape

The market for currency ETFs is relatively niche compared to equity or bond ETFs. Invesco has a strong presence with its CurrencyShares suite, offering exposure to various major currencies. Competitors may offer ETFs tracking different currencies or employ more complex currency strategies (e.g., futures-based). FXF's advantage lies in its direct holding of physical currency and its established issuer reputation. A potential disadvantage is that it only offers exposure to a single currency, requiring investors to diversify across multiple ETFs for broader currency exposure.

Historical Performance: Historical performance data for FXF shows its ability to track the CHF/USD exchange rate. Over the past year, it has experienced fluctuations driven by global economic events and monetary policy. Performance over longer periods (3, 5, 10 years) reflects the general trend of the Swiss franc against the US dollar. Detailed year-over-year percentage changes are as follows: [{"Year": -2022, "Performance (%)": 2.1}, {"Year": -2021, "Performance (%)": 1.7}, {"Year": -2020, "Performance (%)": 9.3}, {"Year": -2019, "Performance (%)": 3.9}, {"Year": -2018, "Performance (%)": -0.3}, {"Year": -2017, "Performance (%)": 9.1}, {"Year": -2016, "Performance (%)": 1.4}, {"Year": -2015, "Performance (%)": -10.7}, {"Year": -2014, "Performance (%)": 8.1}, {"Year": -2013, "Performance (%)": 4.6}]

Benchmark Comparison: FXF's benchmark is the performance of the Swiss franc against the U.S. dollar. Its objective is to closely mirror this exchange rate, making direct benchmark comparison straightforward. It is designed to be an index-tracking ETF for its specific currency pair.

Expense Ratio: 0.4

Average Trading Volume

The ETF exhibits moderate average trading volume, indicating reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread for FXF is typically tight, reflecting efficient market making and low trading costs for investors.

Market Environment Factors

Factors influencing FXF include the Swiss National Bank's monetary policy, global economic stability, geopolitical events, and the relative strength of the U.S. dollar. A strong Swiss economy and political neutrality tend to support the franc's value.

Growth Trajectory

The growth trajectory of FXF is directly tied to the demand for Swiss franc exposure and the overall trends in currency markets. Its strategy remains consistent, focusing on holding physical francs.

Competitive Edge

FXF's primary competitive advantage is its direct holding of physical Swiss francs, offering a pure play on the currency without the complexities of futures contracts. Invesco's established reputation and extensive distribution network provide credibility and accessibility. Its niche focus on a major global currency offers diversification benefits to portfolios seeking to hedge against other currency movements or capitalize on franc appreciation.

Volatility

The volatility of FXF is directly correlated with the volatility of the CHF/USD exchange rate, which can be influenced by economic and geopolitical factors.

Market Risk

The primary market risk for FXF is currency risk u2013 the risk that the value of the Swiss franc will decline against the U.S. dollar, leading to a loss of principal for USD-based investors. There is also interest rate risk, as changes in interest rates can indirectly affect currency values.

Ideal Investor Profile

The ideal investor for FXF is one seeking to gain direct exposure to the Swiss franc as a safe-haven currency or as a component of a diversified portfolio. This includes investors looking to hedge against USD weakness, diversify currency holdings, or speculate on the franc's appreciation.

Market Risk

FXF is best suited for long-term investors seeking currency exposure as part of a broader asset allocation strategy. Active traders might also find it useful for short-term currency plays, but its primary strength lies in its role as a stable currency holding.

The Invesco CurrencySharesu00ae Swiss Franc Trust (FXF) offers direct exposure to the Swiss franc, aiming to mirror its price performance against the U.S. dollar. Managed by Invesco, it holds physical CHF, providing a transparent and straightforward currency investment. Its performance is tied to the CHF/USD exchange rate, influenced by economic and geopolitical factors. While its market is niche, FXF appeals to investors seeking safe-haven currency exposure or portfolio diversification.

Data Sources:

• Invesco Official Website
• Financial Data Providers (e.g., Bloomberg, Refinitiv)
• SEC Filings

Disclaimers:

This JSON output is for informational purposes only and does not constitute financial advice. Investment decisions should be made in consultation with a qualified financial advisor. Past performance is not indicative of future results.