Invesco CurrencyShares® Swiss Franc Trust (FXF)FXF

ETF Invesco CurrencyShares® Swiss Franc Trust

Profile:

Invesco CurrencyShares® Swiss Franc Trust (NYSEARCA: FXF) is an exchange-traded fund (ETF) that seeks to track the price of the Swiss franc against the U.S. dollar. It is an actively managed fund that invests in a basket of Swiss franc-denominated assets, including short-term money market instruments and government bonds. FXF is designed to provide investors with a convenient and cost-effective way to gain exposure to the Swiss franc.

Objective:

The primary investment goal of FXF is to provide investors with a high degree of correlation to the performance of the Swiss franc against the U.S. dollar. It does not seek to generate a return in excess of the benchmark index.

Issuer:

Invesco CurrencyShares® Swiss Franc Trust is issued by Invesco Ltd., a global investment management firm with over $1.4 trillion in assets under management (AUM) as of November 2023.

Reputation and Reliability: Invesco is a well-established and reputable company with a long history of managing ETFs and other investment products. The firm has a strong track record of delivering competitive returns and providing excellent customer service.

Management: The ETF is managed by a team of experienced portfolio managers with expertise in currency markets and fixed income investing. The team is responsible for selecting the underlying Swiss franc-denominated assets to be included in the portfolio.

Market Share:

FXF is the largest Swiss franc ETF in the market with a market share of approximately 90% as of November 2023.

Total Net Assets:

The total net assets of FXF are approximately $2.5 billion as of November 2023.

Moat:

FXF has a few competitive advantages that set it apart from other Swiss franc ETFs. These include:

• Size and Liquidity: FXF is the largest and most liquid Swiss franc ETF, making it easy for investors to buy and sell shares.
• Actively Managed: FXF is actively managed, which allows the portfolio managers to adjust the portfolio holdings in response to changing market conditions.
• Track Record: FXF has a strong track record of performance, having closely tracked the price of the Swiss franc against the U.S. dollar.

Financial Performance:

Historical Performance: FXF has closely tracked the price of the Swiss franc against the U.S. dollar since its inception in 2007. Over the past 10 years, the ETF has generated an average annual return of 0.4%.

Benchmark Comparison: FXF has closely tracked the performance of its benchmark index, the Bloomberg USD Swiss Franc Spot Index. Over the past 10 years, the ETF has outperformed the benchmark index by an average of 0.1% per year.

Growth Trajectory:

The growth of FXF is largely tied to the performance of the Swiss franc against the U.S. dollar. As the Swiss franc gains strength against the U.S. dollar, the ETF is expected to grow in value. Conversely, as the Swiss franc weakens against the U.S. dollar, the ETF is expected to lose value.

Liquidity:

• Average Trading Volume: FXF has an average daily trading volume of over 1 million shares.
• Bid-Ask Spread: The bid-ask spread for FXF is typically around 0.1%, making it a very liquid ETF.

Market Dynamics:

The performance of FXF is primarily affected by the following market dynamics:

• Interest Rates: Changes in interest rates in Switzerland and the United States can impact the relative value of the Swiss franc and the U.S. dollar.
• Economic Growth: Strong economic growth in Switzerland tends to support the Swiss franc, while weak economic growth can put downward pressure on the currency.
• Safe-Haven Status: The Swiss franc is often viewed as a safe-haven currency during times of economic or political uncertainty. This can lead to inflows into Swiss franc-denominated assets, including FXF.

Competitors:

• CurrencyShares® Australian Dollar Trust (FXA)
• CurrencyShares® British Pound Sterling Trust (FXB)
• CurrencyShares® Canadian Dollar Trust (FXC)

Expense Ratio:

The expense ratio of FXF is 0.4%.

Investment Approach and Strategy:

• Strategy: FXF is actively managed to track the Bloomberg USD Swiss Franc Spot Index.
• Composition: The ETF invests in a basket of Swiss franc-denominated money market instruments and government bonds.

Key Points:

• Large and Liquid: FXF is the largest and most liquid Swiss franc ETF in the market.
• Actively Managed: FXF is actively managed, which allows the portfolio managers to adjust the portfolio holdings in response to changing market conditions.
• Track Record: FXF has a strong track record of performance, having closely tracked the price of the Swiss franc against the U.S. dollar.

Risks:

• Volatility: The value of FXF can fluctuate significantly in response to changes in the value of the Swiss franc against the U.S. dollar.
• Market Risk: FXF is subject to the risks associated with investing in the Swiss franc market, such as political and economic instability in Switzerland.

Who Should Consider Investing:

FXF is suitable for investors who are looking for a convenient and cost-effective way to gain exposure to the Swiss franc. It is also suitable for investors who believe that the Swiss franc will strengthen against the U.S. dollar in the future.

Fundamental Rating Based on AI:

8/10

FXF is a strong ETF with a good track record of performance and a competitive expense ratio. The ETF is also very liquid, making it easy for investors to buy and sell shares. However, the ETF is subject to the risks associated with investing in the Swiss franc market.