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These factors include fluctuations in the price of the Canadian Dollar, as the value of the Shares relates directly to the value of the Canadian Dollars held by the Trust and price fluctuations could materially adversely affect an investment in the Shares.
−Removed: Readers are urged to review the “Risk Factors” section contained in the Trust’s most recent annual report on Form 10-K for a description of other risks and uncertainties that may affect an investment in the Shares.
+Added: Readers are urged to review the “Risk Factors” section contained in the Trust’s most recent Annual Report on Form 10-K, together with the modified risk factor included in Item IA of this report, for a description of other risks and uncertainties that may affect an investment in the Shares.
Neither Invesco Specialized Products, LLC (the “Sponsor”) nor any other person assumes responsibility for the accuracy or completeness of forward-looking statements contained in this report.
36 unchanged sentences
Interest on the primary deposit account, if any, accrues daily and is paid monthly.
−Removed: The interest rate in effect as of September 30, 2024 was an annual nominal rate of 2.11%.
−Removed: The following chart provides the daily rate paid by the Depository since September 30, 2019:
+Added: The interest rate in effect as of March 31, 2025 was an annual nominal rate of 0.91%.
+Added: The following chart provides the daily rate paid by the Depository since March 31, 2020:
In exchange for a fee, the Sponsor bears most of the expenses incurred by the Trust.
9 unchanged sentences
These estimates and assumptions affect the Trust’s application of accounting policies.
−Removed: In addition, please refer to Note 3 to the financial statements of the Trust for further discussion of the Trust’s accounting policies and Item 7 – Management’s Discussions and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates on Form 10-K for the year ended December 31, 2023.
+Added: In addition, please refer to Note 3 to the financial statements of the Trust for further discussion of the Trust’s accounting policies and Item 7 – Management’s Discussions and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates included in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2024.
Results of Operations
−Removed: During the three and nine months ended September 30, 2024 and 2023, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility resulting from expectations around the Federal Reserve (the “Fed”) easing and heightened geopolitical concerns for 2024, and the US banking sector turmoil for 2023 which are considered to be unusual or infrequent events.
−Removed: full and direct impact of Fed easing expectations, rising geopolitical tensions, and the US banking sector turmoil on the Trust’s net comprehensive income (loss) during the three and nine months ended September 30, 2024 and 2023 cannot be known, it is believed that they have each independently impacted the Closing Spot Rate, the interest rate paid by the Depository, and the global economy and markets generally, including the number of Shares created and redeemed by the Trust.
−Removed: The Canadian dollar (CAD/USD) ended the third quarter of 2024 higher, largely due to the downturn in the US dollar;
−Removed: the US Federal Reserve (Fed) officially kicked off its easing cycle in September.
−Removed: However, the downturn in energy prices limited the upside given Canada is a major crude oil exporter.
−Removed: A subdued Canadian economy has also been a headwind for the CAD and has increased the call for a supersized rate cut;
−Removed: the Bank of Canada has already eased three times this year, for a total of 0.75% of cuts.
−Removed: The Canadian dollar (CAD/USD) posted negative performance in the third quarter of 2023, largely due to gains in the US dollar though the recovery in energy commodities from mid-August onwards significantly limited the downside.
−Removed: The country is a major exporter of crude oil and is thus highly sensitive to moves in the energy market.
−Removed: Canadian inflation also came in higher than expected in August due to the higher energy prices which raised bets that the Bank of Canada (BoC) would need to continue tightening – current inflation rates are still well above the central bank’s target rate.
−Removed: The Canadian dollar (CAD/USD) ended the first three quarters of 2024 lower, mainly due to US dollar strength and weak energy prices.
−Removed: The Fed’s higher-for-longer rhetoric and US economic resilience pushed out expectations for rate cuts in the first half of the year;
+Added: During the three months ended March 31, 2025 and 2024, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility resulting from global tariff gyrations and mounting US recession concerns for 2025, and expectations around the Federal Reserve (the “Fed”) easing and heightened geopolitical concerns for 2024, which are considered to be unusual or infrequent events.
+Added: Although the full and direct impact of global tariffs, US recession concerns, Fed easing expectations and rising geopolitical tensions, on the Trust’s net comprehensive income (loss) during the three months ended March 31, 2025 and 2024, cannot be known, it is believed that they have each independently impacted the Closing Spot Rate, the interest rate paid by the Depository, and the global economy and markets generally, including the number of Shares created and redeemed by the Trust.
+Added: The Canadian Dollar (CAD/USD) ended the first quarter of 2025 flat.
+Added: Despite US dollar (USD) weakness due to recession and stagflation concerns, tariff tensions with the US and plunging oil prices kept the lid on gains.
+Added: With Canada being one of the first targets of President Trump’s tariff policies, the country’s economic outlook soured.
+Added: Furthermore, turmoil in US financial markets led to a broader risk off move that included commodities, which negatively impacted the CAD given the country is a major energy exporter.
+Added: The Canadian Dollar (CAD/USD) was pressured in the first quarter of 2024, mainly by gains in the USD.
+Added: The Fed’s higher-for-longer rhetoric and stickier-than-expected US inflation pushed out expectations for rate cuts.
Higher rates generally provide support for the country’s currency.
−Removed: While rising energy prices due to geopolitical tensions did limit some of the downside in the first quarter of 2024, this became a headwind in the second and the third quarter of 2024 as crude oil was pressured at first by recession concerns, and then low refining margins decreasing crude demand, the bearish Trump trade, expectations for a supply glut in 2025, and the OPEC spare capacity overhang.
−Removed: Geopolitical risk premium also faded with no real supply disruptions playing out.
−Removed: The Canadian dollar (CAD/USD) ended the first three quarters of 2023 largely flat, following losses in the third quarter of 2023.
−Removed: While the CAD did gain a bit in the first half of the first quarter of 2023 as the US dollar weakened further on expectations for a softer Fed stance, the pair fell sharply from mid-Feb to mid-Mar, with the dollar rebounding on signs of continued strength in the US labor market and inflation.
−Removed: Struggling commodity prices also capped the upside for the currency given the country is a major exporter of crude oil.
−Removed: However, the currency pair did rebound in the second half of March amid a weaker USD and the boost in energy prices.
−Removed: In the second quarter of 2023, while the pair was pretty range bound in April and May, the CAD really gained in June supported by the hawkish repricing of the BoC’s interest rate expectations while the US Fed paused.
−Removed: Despite its resilience, renewed dollar strength heavily pressured the pair in the third quarter of 2023, though the rebound in energy commodities limited the downside.
−Removed: Additionally, the interest rate paid by the Depository has generally trended upward over the past year, slightly offset by decline in the recent quarter, to the current interest rate of 2.11%, as set forth in the FXC Rate Chart above.
+Added: US economic resilience also boosted demand for the USD, pressuring the pair.
+Added: While rising energy prices typically benefit the Canadian Dollar given the country is a major exporter of crude oil, the positive impact was outweighed by the mentioned USD gains.
+Added: Additionally, the interest rate paid by the Depository has generally trended downward over the past year to the current interest rate of 0.91%, as set forth in the FXC Rate Chart above.
As long as the interest income, if any, exceeds the Sponsor's fee and the interest expense on currency deposits, the Trust will incur a net comprehensive income.
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.