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Item 7. Management’s Discussion and Analysis

2025-02-26 compared with 2024-02-23 · 78 added, 85 removed, 840 unchanged (16% of the section changed)

93 unchanged sentences

The day on which a redemption order is settled is the redemption order settlement date.

As provided below, the redemption order settlement date may occur up to two business days after the redemption order date.

As provided below, the redemption order settlement date may occur up to one business day after the redemption order date.

Redemption orders are irrevocable.

3 unchanged sentences

Unless otherwise agreed to by the Managing Owner and the Authorized Participant as provided in the next sentence, by placing a redemption order, an Authorized Participant agrees to deliver the Creation Units to be redeemed through DTC’s book-entry system to the Fund no later than the redemption order settlement date as of 2:45 p.m., Eastern Time, on the business day immediately following the redemption order date.

Upon submission of a redemption order, the Authorized Participant may request the Managing Owner to agree to a redemption order settlement date up to two business days after the redemption order date.

Upon submission of a redemption order, the Authorized Participant may request the Managing Owner to agree to a redemption order settlement date up to one business day after the redemption order date.

By placing a redemption order, and prior to receipt of the redemption proceeds, an Authorized Participant’s DTC account is charged the non-refundable transaction fee due for the redemption order.

20 unchanged sentences

This cash is used to invest in United States Treasury Obligations, money market mutual funds and T-Bill ETFs, if any, and to meet margin requirements as a result of the positions taken in DX Contracts to match the fluctuations of the Index.

As of the date of this Report, each of ABN AMRO Clearing Chicago LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp., BofA Securities, Inc., Cantor Fitzgerald & Co., Citadel Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Goldman Sachs Execution & Clearing LP, Interactive Brokers LLC, Jefferies LLC, JP Morgan Securities Inc., Merrill Lynch Professional Clearing Corp., Morgan Stanley & Co.

As of the date of this Report, each of ABN AMRO Clearing Chicago LLC, Bank of America Securities, BMO Capital Markets Corp., BNP Paribas Securities Corp., BofA Securities, Inc., Cantor Fitzgerald & Co., Citadel Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Goldman Sachs Execution & Clearing LP, Interactive Brokers LLC, Jane Street Capital LLC, Jefferies LLC, JP Morgan Securities Inc., Morgan Stanley & Co.

LLC, Nomura Securities International Inc., RBC Capital Markets LLC, UBS Securities LLC, Virtu Americas LLC and Virtu Financial Capital Markets LLC has executed a Participant Agreement and are the only Authorized Participants.

34 unchanged sentences

SHORT INDEX-TR

For the Years Ended

Underlying Index

13 unchanged sentences

The Share price low and high for the year ended December 31, 2024 and related change from the Share price on December 31, 2023 was as follows:

Shares traded at a low of $16.71 per Share (-9.33%) on December 31, 2024, and a high of $19.01 per Share (+3.15%) on September 27, 2024.

On December 27, 2024, the Fund paid a distribution of $0.89039 for each General Share and Share to holders of record as of December 23, 2024.

Therefore, the total return for the Fund on a market value basis was -4.52%.

dollar rallied significantly in 2024, leading to negative performance for the Fund (-5%).

While the U.S.

dollar had fallen to end 2023 on expectations of imminent interest rate cuts, the Federal Reserve stuck to its higher-for-longer rhetoric through the first two quarters of the year as US inflation proved stickier than expected.

This forced the market to repeatedly delay Federal Reserve interest rate easing expectations at the same time that many global economies including Switzerland, Sweden, Canada, and the European Central Bank (ECB), kicked off their rate-cutting cycles.

However, U.S.

Dollar moved lower in the third quarter with the Federal Reserve joining the other central banks, announcing its first rate cut in September.

Furthermore, the Bank of Japan surprised the market with a rate hike in August, sending the Japanese Yen higher.

In the fourth quarter however, rising geopolitical tensions and President Trump’s victory served as tailwinds, as many of President Trump’s campaign policies were expected to raise inflation risk, potentially leading to slower, if any, Federal Reserve rate cuts in 2025.

In addition, tariffs generally weigh on foreign currencies, further boosting the U.S.

For the year ended December 31, 2023, the NYSE Arca market value of each Share decreased from $18.50 per Share to $18.43 per Share.

The Share price low and high for the year ended December 31, 2023 and related change from the Share price on December 31, 2022 was as follows:

Shares traded at a low of $18.20 per Share (-1.62%) on March 8, 2023, and a high of $19.45 per Share (+5.14%) on July 13, 2023 .

13 unchanged sentences

dollar weakness returned to end the year as Federal Reserve rate cut expectations grew.

For the year ended December 31, 2022, the NYSE Arca market value of each Share decreased from $20.25 per Share to $18.50 per Share.

The Share price low and high for the year ended December 31, 2022 and related change from the Share price on December 31, 2021 was as follows:

Shares traded at a low of $16.80 per Share (-17.04%) on September 27, 2022, and a high of $20.41 per Share

(+0.79%) on January 13, 2022.

On December 23, 2022, the Fund paid a distribution of $0.12753 for each General Share and Share to holders of record as of December 20, 2022.

Therefore, the total return for the Fund on a market value basis was -8.01%.

In 2022, the Fund posted negative performance in the first three quarters of the year but recovered significantly in the fourth quarter as the U.S.

dollar retreated.

Heightened geopolitical tensions in the first quarter and growing recession fears in the second and third quarters boosted demand for haven assets like the U.S.

dollar, pushing it past 20-year highs in September, while uncertainty over Europe’s macroeconomic outlook in the first quarter, given its geographical proximity and strong reliance on Russian commodities, and then the region’s deepening energy crisis in the second and third quarters weighed on its European counterparts.

dollar was also supported by other central banks relatively dovish policies, notably the Bank of Japan, in comparison to the Federal Reserve, as higher interest rates tend to boost demand for a currency.

Finally, falling crude oil prices weighed on the Canadian dollar given the country is a major exporter of the commodity.

However, the U.S.

dollar plunged to end the year as expectations for a moderation in Federal Reserve rate hikes grew, following a larger-than-expected drop in US inflation.

Fund Share Net Asset Performance

For the year ended December 31, 2024, the NAV of each Share decreased from $18.42 per Share to $16.73 per Share.

Falling currency futures contract prices for short DX Contracts during the year ended December 31, 2023 contributed to an overall 0.52% increase in the level of the Index and to a 5.82% increase in the level of the Short Index-TR TM .

Falling currency futures contract prices for short DX Contracts during the year ended December 31, 2024 contributed to an overall 8.47% decrease in the level of the Index and to a 3.67% decrease in the level of the Short Index-TR TM .

On December 27, 2024, the Fund paid a distribution of $0.89039 for each General Share and Share to holders of record as of December 23, 2024.

2 unchanged sentences

For the year ended December 31, 2023, the NAV of each Share decreased from $18.50 per Share to $18.42 per Share.

Falling currency futures contract prices for short DX Contracts during the year ended December 31, 2022 contributed to an overall -8.71% decrease in the level of the Index and to a -6.85% decrease in the level of the Short Index-TR TM .

On December 22, 2023, the Fund paid a distribution of $0.960780 for each General Share and Share to holders of record as of December 19, 2023.

139 unchanged sentences

December 31, 2024 and 2023

United States Treasury Obligations, at value (cost $ 29,495,276 and

$ 30,787,285 , respectively)

United States Treasury Obligations, at value (cost $ 14,849,209 and $ 29,495,276 , respectively)

Affiliated investments, at value and cost

Other investments:

Variation margin receivable- Currency Futures Contracts

Cash held by custodian

Receivable for:

2 unchanged sentences

Variation margin payable - Currency Futures Contracts

Due to custodian

Management fees

18 unchanged sentences

United States Treasury Obligations (a)

Treasury Bill, 5.250 % due March 7, 2024

Treasury Bill, 5.245 % due April 4, 2024

Treasury Bill, 5.270 % due May 16, 2024 (b)

Treasury Bill, 5.190 % due June 6, 2024

Treasury Bills, 4.400 % due March 6, 2025

Treasury Bills, 4.230 % due April 3, 2025 (b)

Total United States Treasury Obligations (cost $ 14,849,209 )

24 unchanged sentences

United States Treasury Obligations (a)

Treasury Bills, 4.155 % due February 16, 2023

Treasury Bills, 4.285 % due March 2, 2023 (b)

Treasury Bills, 5.250 % due March 7, 2024

Treasury Bills, 5.245 % due April 4, 2024

Treasury Bills, 5.270 % due May 16, 2024 (b)

Treasury Bills, 5.190 % due June 6, 2024

Total United States Treasury Obligations (cost $ 29,495,276 )

19 unchanged sentences

Statements of Income and Expenses

For the Years Ended December 31, 2023, 2022 and 2021

For the Year Ended December 31, 2024, 2023 and 2022

Interest Income

5 unchanged sentences

Net Investment Income (Loss)

Net Realized and Net Change in Unrealized Gain (Loss) on

United States Treasury Obligations, Affiliated Investments

and Currency Futures Contracts

Net Realized Gain (Loss) on

Net Realized and Net Change in Unrealized Gain (Loss)

on United States Treasury Obligations, Affiliated

Investments and Currency Futures Contracts

Net Realized Gain (Loss) from

United States Treasury Obligations

1 unchanged sentence

Net Realized Gain (Loss)

Net Change in Unrealized Gain (Loss) on

Net Change in Unrealized Gain (Loss) from

United States Treasury Obligations

1 unchanged sentence

Net Change in Unrealized Gain (Loss)

Net Realized and Net Change in Unrealized Gain (Loss) on

United States Treasury Obligations, Affiliated Investments

and Currency Futures Contracts

Net Realized and Net Change in Unrealized

Gain (Loss) on United States Treasury

Obligations, Affiliated Investments and

Currency Futures Contracts

Net Income (Loss)

53 unchanged sentences

Net Increase (Decrease) due to Share Transactions

Return of Capital Distributions

Net Income (Loss)

12 unchanged sentences

Statements of Cash Flows

For the Years Ended December 31, 2023, 2022 and 2021

For the Year Ended December 31, 2024, 2023 and 2022

Cash flows from operating activities:

Net Income (Loss)

Adjustments to reconcile net income (loss) to net cash provided by (used for)

operating activities:

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating

Cost of securities purchased

6 unchanged sentences

Net accretion of discount on United States Treasury Obligations

Net change in unrealized gain (loss) on United States Treasury

Obligations, Affiliated Investments and Currency Futures Contracts

Net realized (gain) loss from United States Treasury Obligations and Affiliated Investments

Net change in unrealized (gain) loss from United States Treasury Obligations and Affiliated Investments

Change in operating assets and liabilities:

3 unchanged sentences

Brokerage commissions and fees

Net cash provided by (used for) operating activities

Net cash provided by (used in) operating activities

Cash flows from financing activities:

2 unchanged sentences

Redemption of Shares

Net cash provided by (used for) financing activities

Increase (Decrease) in payable for amount due to custodian

Net cash provided by (used in) financing activities

Net change in cash

55 unchanged sentences

In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are issued.

Segment Reporting

In November 2023, the FASB issued Accounting Standards Update 2023-07 , Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (“ASU 2023-07”), with the intent of improving reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, allowing financial statement users to better understand the components of a segment's profit or loss and assess potential future cash flows for each reportable segment and the entity as a whole thereby enabling better understanding of how an entity's segments impact overall performance.

The Fund represents a single operating segment.

Subject to the oversight and, when applicable, approval of the Board of Managers, the Fund's Managing Owner acts as the Fund's chief operating decision maker (“CODM”), assessing performance and making decisions about resource allocation within the Fund.

The CODM monitors the operating results as a whole and the Fund's long-term strategic asset allocation is determined in accordance with the terms of its prospectus based on a defined investment strategy.

The financial information provided to and reviewed by the CODM is consistent with that presented in the Fund's financial statements.

Adoption of the new standard impacted the Fund's financial statement note disclosures only and did not affect the Fund's financial position or the results of its operations.

Investment Valuations

16 unchanged sentences

Realized gains or losses from the sale or disposition of securities or derivatives are determined on a specific identification basis and recognized in the Statements of Income and Expenses in the period in which the contract is closed or the sale or disposition occurs, respectively.

Interest income on United States Treasury Obligations is recognized on an accrual basis when earned.

Interest income on United States Treasury Obligations is

recognized on an accrual basis when earned.

Premiums and discounts are amortized or accreted over the life of the United States Treasury Obligations.

6 unchanged sentences

The table below shows distributions per General Share and Share in total for the years presented:

Years Ended December 31,

Distributions per General Share

Distributions per Share

For the Years Ended December 31,

Distribution per General Share

Distribution per Share

Distributions paid to General Shares

27 unchanged sentences

Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral with the Commodity Broker.

During the period that the currency futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis.

period that the currency futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis.

Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred.

4 unchanged sentences

In the normal course of its business, the Fund is a party to financial instruments with off-balance sheet risk.

The term “off-balance sheet risk” refers to an unrecorded potential liability that, even though it does not appear on the balance sheet, may result in a

future obligation or loss in excess of the amounts shown on the Statements of Financial Condition.

The term “off-balance sheet risk” refers to an unrecorded potential liability that, even though it does not appear on the balance sheet, may result in a future obligation or loss in excess of the amounts shown on the Statements of Financial Condition.

The financial instruments used by the Fund are currency futures contracts, the values of which are based upon an underlying asset and generally represent future commitments that have a reasonable possibility of being settled in cash or through physical delivery.

34 unchanged sentences

Such executing brokers give-up all such transactions to the Commodity Broker.

In its capacity as clearing broker, the Commodity Broker may execute or receive transactions

executed by others and clears all of the Fund’s futures transactions and performs certain administrative and custodial services for the Fund.

In its capacity as clearing broker, the Commodity Broker may execute or receive transactions executed by others and clears all of the Fund’s futures transactions and performs certain administrative and custodial services for the Fund.

The Commodity Broker is responsible, among other things, for providing periodic accountings of all dealings and actions taken by the Trust on behalf of the Fund during the reporting period, together with an accounting of all securities, cash or other indebtedness or obligations held by it or its nominees for or on behalf of the Fund.

13 unchanged sentences

to serve as the index sponsor (the “Index Sponsor”).

On February 1, 2021, the provision of index sponsor services transferred back to Deutsche Bank Securities, Inc.

from DWS Investment Management Americas, Inc., to whom Deutsche Bank Securities, Inc.

had previously assigned such responsibility.

The Index Sponsor calculates and publishes the daily index levels and the indicative intraday index levels.

12 unchanged sentences

The Managing Owner will utilize any excess cash held at the Commodity Broker to offset any realized losses incurred in the currency futures contracts, if available.

To the extent that any excess cash held at the Commodity Broker is not adequate to cover any realized losses, a portion of the United States Treasury Obligations and T-Bill ETFs, if any, on deposit with the Commodity Broker will be sold to make additional cash available.

To the extent that any excess cash held at the Commodity Broker is not adequate to cover any realized losses, a portion of the United States Treasury Obligations

and T-Bill ETFs, if any, on deposit with the Commodity Broker will be sold to make additional cash available.

For financial reporting purposes, the Fund offsets financial assets and financial liabilities that are subject to legally enforceable netting arrangements.

23 unchanged sentences

Total Investments in Securities

Other Investments - Assets (a)

Other Investments—Liabilities (a)

Currency Futures Contracts

21 unchanged sentences

For the Years Ended

Location of Gain or (Loss) on Derivatives

Location of Gain (Loss) on Derivatives

Risk Exposure/Derivative Type

10 unchanged sentences

The following is a summary of the transactions in, and earnings from, investments in affiliates for the year ended December 31, 2024.

Value 12/31/2022

Purchases at Cost

2 unchanged sentences

Realized Gain (Loss)

Value 12/31/2023

Dividend Income

1 unchanged sentence

Money Market Funds:

Invesco Government &

Agency Portfolio,

Institutional Class

( 137,670,144

Invesco Government & Agency

Portfolio, Institutional Class

The following is a summary of the transactions in, and earnings from, investments in affiliates for the year ended December 31, 2023.

Value 12/31/2021

Purchases at Cost

2 unchanged sentences

Realized Gain (Loss)

Value 12/31/2022

Dividend Income

1 unchanged sentence

Money Market Funds:

Invesco Government &

Agency Portfolio,

Institutional Class

Invesco Government & Agency

Portfolio, Institutional Class

( 137,670,144

The following is a summary of the transactions in, and earnings from, investments in affiliates for the year ended December 31, 2022.

Value 12/31/2020

Purchases at Cost

2 unchanged sentences

Realized Gain (Loss)

Value 12/31/2021

Dividend Income

1 unchanged sentence

Money Market Funds:

Invesco Government &

Agency Portfolio,

Institutional Class

Invesco Government & Agency

Portfolio, Institutional Class

( 123,702,448

8 unchanged sentences

Cash settlement occurs at the creation order settlement date.

As provided below, the creation order settlement date may occur up to two business days after the creation order date.

As provided below, the creation order settlement date may occur up to one business day after the creation order date.

By placing a creation order, and prior to delivery of such Creation Units, an Authorized Participant’s Depository Trust Company (“DTC”) account is charged the non-refundable transaction fee due for the creation order.

Unless otherwise agreed to by the Managing Owner and the Authorized Participant as provided in the next sentence, Creation Units are issued on the creation order settlement date as of 2:45 p.m., Eastern Time, on the business day immediately following the creation order date at the applicable NAV per Share as of the closing time of the NYSE Arca or the last to close of the exchanges on which its futures contracts are traded, whichever is later, on the creation order date, but only if the required payment has been timely received.

Upon submission of a creation order, the Authorized Participant may request the Managing Owner to agree to a creation order settlement date up to two business days after the creation order date.

Upon submission of a creation order, the Authorized Participant may request the Managing Owner to agree to a creation order settlement date up to one business day after the creation order date.

(b) Redemptions

4 unchanged sentences

Cash settlement occurs at the redemption order settlement date.

As provided below, the redemption order settlement date may occur up to two business days after the redemption order date.

As provided below, the redemption order settlement date may occur up to one business day after the redemption order date.

The redemption procedures allow Authorized Participants to redeem Creation Units.

2 unchanged sentences

Upon submission of a redemption order, the Authorized Participant may request the Managing Owner to agree to a redemption order settlement date up to one business day after the redemption order date.

By placing a redemption order, and prior to receipt of the redemption proceeds, an Authorized Participant’s DTC account is charged the non-refundable transaction fee due for the redemption order.

4 unchanged sentences

If the Fund’s DTC account has not been credited with all of the Creation Units to be redeemed by such time, the redemption distribution is delivered to the extent of whole Creation Units received.

Any remainder of the redemption distribution is delivered on the next business day to the extent of remaining whole Creation Units received if the Transfer Agent receives the fee applicable to the

extension of the redemption distribution date which the Managing Owner may, from time to time, determine and the remaining Creation Units to be redeemed are credited to the Fund’s DTC account by 2:45 p.m., Eastern Time, on such next business day.

Any further outstanding amount of the redemption order will be cancelled.

Any remainder of the redemption distribution is delivered on the next business day to the extent of remaining whole Creation Units received if the Transfer Agent receives the fee applicable to the extension of the redemption distribution date which the Managing Owner may, from time to time, determine and the remaining Creation Units to be redeemed are credited to the Fund’s DTC account by 2:45 p.m., Eastern Time, on such next business day.

further outstanding amount of the redemption order will be cancelled.

The Managing Owner is also authorized to deliver the redemption distribution notwithstanding that the Creation Units to be redeemed are not credited to the Fund’s DTC account by 2:45 p.m., Eastern Time, on the redemption order settlement date if the Authorized Participant has collateralized its obligation to deliver the Creation Units through DTC’s book-entry system on such terms as the Managing Owner may determine from time to time.

9 unchanged sentences

NAV per Share is the NAV of the Fund divided by the number of outstanding Shares at the date of each respective period presented.

For the Years Ended December 31,

For the Years Ended

Net Asset Value

25 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.

What changed 10-K

Item 7. Management’s Discussion and Analysis