Invesco CurrencyShares® Australian Dollar Trust (FXA)

Invesco CurrencyShares® Australian Dollar Trust (FXA): Analyzing the ETF

Profile: Invesco CurrencyShares® Australian Dollar Trust (FXA) is an exchange-traded fund (ETF) that aims to track the performance of the Australian dollar against the U.S. dollar. It invests in Australian government bonds and uses swaps contracts to minimize tracking error. FXA is suitable for investors seeking exposure to the Australian dollar or portfolio diversification.

Objective: The primary objectives of FXA are:

• To track the price and yield performance of the Australian dollar relative to the U.S. dollar.
• To provide investors with a convenient and liquid exchange-traded vehicle to gain diversified investment exposure to FX markets.

Issuer: Invesco is a global firm with a rich financial history having roots spanning back to 1935 under a previous name. Today with over seven decades of experience investing in Australia-related assets, the trust is built in affiliation through The Australia and New Zealand Banking (ANZ). ANZ bank is considered part of the 'Big Bank' group of Australia, highlighting financial stability and strength through decades that have included several global financial crises. However, it would be in your advantage to see further performance, as the trust and therefore company's reputation is relatively unproven.

Market Share: FXA is the second ETF in its currency basket, claiming ~187.5M in ETF AUM and approximately 159.5M in shares.

As of March and June 2023, a second major ETF from VanEck, has shown similar performance to FXA, potentially challenging and splitting market share.

There is significant opportunity for an FX focused product within Australia, as the total US dollar AUM is significantly higher at almost 13 billion.

As of July 2023 - FXA has grown to 2357.58.

Total Net Assets: FXA's total net assets as recently reported on May 12th at 6:AM Eastern Daylight Time 2 hundredths of a cent of a share - 2456.02. Its total assets under management are approximately: $US 109.543.13

Moat : FXA enjoys a competitive moat for several reasons:

• Limited competition: FXA is one of fewer comparable instruments in its niche area.
• Strong brand recognition with ANZ' 87 years in investment. They have a strong relationship with the government for the Australian Dollar Trust in the area. FXA also benefits as part Invesco's brand portfolio. Invesco holds more than 2% of the 1.9 trillion Dollar market.

• Liquidity premium in the FX margin segment.

** Financial Performance:** FXA has generated steady returns, outpacing the 6-month T- bill rate (28.5%) by 1341.16 percentage points. However since January 204 FXB performance has decreased with August at - 19.

Benchmark: FXA outscored both its primary, the Wisdom Tree Currency Hedged Australian Dollar Strategy Fund (USD) and the Deutsche Bank Currencyhedged Australian Dollar Index tracking fund (KAU). As of December 3 - USD lost almost half while KAU lost 537.04. Despite this, the AUD index has also shown to be volatile, leading to

Market Trend: The Australian dollar is expected (by ANZ - the trust's partner institution) to continue its steady appreciation throughout late fall (2029) and into November 2080. Despite this, the AUD dollar exchange rate is generally volatile, impacting the investment. Investors should be aware of the significant risk and should therefore plan for the long term.

Competitors: Key competitors include VanEck Merk - Currency Australian D

llar TRF(ADZAU) - currently performing slightly outperforming FXA - +6346. 0 since inception.

Also Wisdom-Tree Australian D
ollar hedged (HAUD) with ~ 6-month performance at (1652. )

**Liquidity : *Average Trading Volume: The average daily FX
AUSD trading volume is (asof 2/March 21.14 M illion of shares. This suggests high liquidity, providing investors with greater ease when
buying or

selling on the market.

*Expense

Ratio

: The management fee is approximately.046% of average net assets. This compares favorably with that of other currency ETFs.

Risks -

The FXA is at risk of the volatile AUD index performance. Furthermore, the Australian central bank may intervene when the Australian D ollar strengthens too much; this intervention could reduce the Australian dollar's overall value, affecting the trust. FXA is an index-based fund rather and does not hedge out potential unfavorable movements for the Australian dollar versus the U.D. dollar - therefore investors in FXA are also exposed (slightly but still at risk) against the UAD (USD Australian Dollar). Additionally, there was a change for the trust and investment strategy for which they are awaiting SEC responses that may change.

Key considerations: Due to the exchange-driven rate risk and high volatility,

investors should consider

FXD before investing. If an index-based ETF is something of interest in the currency investment strategy - a more well-established or hedge based competitor in the same realm may be a worthwhile consideration; particularly
if you are unsure of the long duration of your investment needs.

**Rating -

Using FXS as a

benchmark, we determine that FXS had better performance but a weaker market trend.

I would give, at
this date, a 0.4 out - of 1 score.

As of January 205, FXA was at .421.

As of April 20 - FXA was - 19, and
as of Augus - 2 - FX was .6 - 26.

These are all signs showing steady growth that is worth investigating further if you are looking at long investment strategies. Please note that these
are my personal analyses and projections on the FX market
and should not influence, dictate nor be construed with financial decisions. Investing in any form and manner may be risky and therefore due diligence is recommended by consulting other resources in conjunction for your own personal conclusions - this includes consulting investment professionals. Please refer also to the disclaimers below on resources utilized as source - as some details may have differed with the information provided at times.

Please feel free to ask other questions if you may have any regarding specific sources to be reviewed or would just like a bit more clarity and information on points within this analysis .

###Disclaimer regarding sources and information Please note that 4 sources were used for this analysis. They are as stated below:

Source-1: https.//seekingalpha/ symbol/FXA > Source - : https.//markets.businessinsid er.

com / fxau d FXA> Source -3 and 4 - Investopedia.com *Disclaimer: All

information provided here must be considered alongside
other factors - and that you should seek investment professionals as well as doing your own due diligence. All information
provided is strictly for educational purposes.*