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Item 2. Management’s Discussion and Analysis

2025-05-08 compared with 2024-11-07 · 83 added, 128 removed, 237 unchanged (47% of the section changed)

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There can be no assurance that the forward-looking statements included in this Report will prove to be accurate.

Factors that could cause results to differ from those expressed in the forward-looking statements are subject to a number of risks, uncertainties and other factors, including those described in the “Risk Factors” section of the Fund’s Prospectus and elsewhere in the Prospectus and in other SEC filings by the Fund, such as its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as well as the following:

• Risks related to market volatility and fluctuations in the price of assets held by the Fund, including the imposition of trading limitations or trading halts, and the potential loss of investment;

• Risks related to market volatility and fluctuations in the price of assets held by the Fund, including as a result of global trade, macroeconomic events the imposition of trading limitations or trading halts, and the potential loss of investment;

• Risks that the market price of Shares will not correspond to NAV;

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• Risks related to the impact of regulatory actions, such as position limits, accountability levels and daily limits;

• Risks and uncertainty related to public health emergencies and other adverse public health developments;

• Risks related to geopolitical conflict, including the on-going hostilities in Ukraine, the conflict in Israel and surrounding areas, the possible expansion of such conflicts and potential geopolitical consequences, acts of terrorism, mass casualty events, social unrest, civil disturbance or disobedience.

• Risks and uncertainty related to public health emergencies and other adverse public health developments geopolitical conflict, acts of terrorism, mass casualty events, social unrest, civil disturbance or disobedience.

You should not place undue reliance on any forward-looking statements.

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Overview/Introduction

Invesco DB US Dollar Index Bearish Fund (the “Fund”), a separate series of Invesco DB US Dollar Index Trust (the “Trust”)

was formed as a Delaware statutory trust on August 3, 2006.

The term of the Fund is perpetual (unless terminated earlier in certain

circumstances) as provided for in the Fifth Amended and Restated Declaration of Trust and Trust Agreement of the Trust, as amended

(the “Trust Agreement”).

Invesco DB U.S.

Dollar Index Bearish Fund (the “Fund”), a separate series of Invesco DB U.S.

Dollar Index Trust (the “Trust”) was formed as a Delaware statutory trust on August 3, 2006.

The term of the Fund is perpetual (unless terminated earlier in certain circumstances) as provided for in the Fifth Amended and Restated Declaration of Trust and Trust Agreement of the Trust, as amended (the “Trust Agreement”).

The Fund has an unlimited number of shares authorized for issuance.

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The Index Sponsor may from time to time subcontract the provision of the calculation and other services described below to one or more third parties.

The Index is calculated to reflect the changes in market value over time, whether positive or negative, of short positions in DX

The Index is calculated to reflect the changes in market value over time, whether positive or negative, of short positions in DX Contracts.

The changes in market value over time, whether positive or negative, of DX Contracts is tied to the USDX®.

is composed of notional amounts of the Index Currencies.

The notional amounts of the Index Currencies included in the USDX®

reflect a geometric weighted average of the change in the Index Currencies’ exchange rates against the U.S.

The USDX® is composed of notional amounts of the Index Currencies.

The notional amounts of the Index Currencies included in the USDX® reflect a geometric weighted average of the change in the Index Currencies’ exchange rates against the U.S.

dollar relative to March 1973.

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The counterparty for futures contracts traded on United States and on most foreign futures exchanges is the clearing house associated with the particular exchange.

In general, clearing houses are backed by their corporate members who may be required to share in the financial burden resulting from the nonperformance by one of their members and, as such, is designed to disperse and mitigate the credit risk posed by any one member.

In cases where the clearing house is not backed by the clearing members (i.e., some foreign exchanges), it may be backed by a consortium of banks or other financial institutions.

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The Fund in turn allocates its net assets to currency futures trading.

A significant portion of the NAV is held in United States Treasury Obligations, which may be used as margin for the Fund’s trading in currency futures contracts and United States Treasury Obligations, money market mutual funds, cash and T-Bill ETFs, if any, which may be used for cash management purposes.

A significant portion of the NAV may be held in United States Treasury Obligations or cash, which may be used as margin for the Fund’s trading in currency futures contracts and United States Treasury Obligations, money market mutual funds, cash and T-Bill ETFs, if any, which may be used for cash management purposes.

The amount of cash and/or United States Treasury Obligations on deposit with the Commodity Broker may exceed the amount of margin required to be on deposit, depending on market conditions and comparative yields available from United States Treasury Obligations, money market funds, T-Bill ETFs and cash held on deposit with Commodity Broker.

The percentage that United States Treasury Obligations bear to the total net assets will vary from period to period as the market values of the Fund’s currency futures change.

A portion of the Fund’s United States Treasury Obligations is held for deposit with the Commodity Broker to meet margin requirements.

All remaining cash, money market mutual funds, T-Bill ETFs, if any, and United States Treasury Obligations are on deposit with the Custodian.

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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.

Redemption orders may be placed either (i) through the Continuous Net Settlement (“CNS”) clearing processes of the National Securities Clearing Corporation (the “NSCC”) (the “CNS Clearing Process”) or (ii) if outside the CNS Clearing Process, only through the facilities of The Depository Trust Company (“DTC” or the “Depository”) (the “DTC Process”), or a successor depository, and

only in exchange for cash.

the facilities of The Depository Trust Company (“DTC” or the “Depository”) (the “DTC Process”), or a successor depository, and only in exchange for cash.

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 and such fee is not borne by the Fund.

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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.

The financial instruments used by the Fund are currency futures, the values of which are based upon an

underlying asset and generally represent future commitments which have a reasonable possibility to be settled in cash or through

physical delivery.

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.

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

The financial instruments are traded on an exchange and are standardized contracts.

The Fund has not utilized, nor does it expect to utilize in the future, special purpose entities to facilitate off-balance sheet

financing arrangements and has no loan guarantee arrangements or off-balance sheet arrangements of any kind, other than agreements

entered into in the normal course of business noted above, which may include indemnification provisions related to certain risks

service providers undertake in providing services to the Fund.

While the Fund’s exposure under such indemnification provisions

cannot be estimated, these general business indemnifications are not expected to have a material impact on the Fund’s financial

The Fund has not utilized, nor does it expect to utilize in the future, special purpose entities to facilitate off-balance sheet financing arrangements and has no loan guarantee arrangements or off-balance sheet arrangements of any kind, other than agreements entered into in the normal course of business noted above, which may include indemnification provisions related to certain risks service providers undertake in providing services to the Fund.

While the Fund’s exposure under such indemnification provisions cannot be estimated, these general business indemnifications are not expected to have a material impact on the Fund’s financial position.

The Managing Owner expects the risk of loss relating to indemnification to be remote.

The Fund has financial obligations to the Managing Owner and the Commodity Broker under the Trust Agreement and its

agreement with the Commodity Broker (the “Commodity Broker Agreement”), respectively.

Management Fee payments made to the

Managing Owner, pursuant to the Trust Agreement, are calculated as a fixed percentage of the Fund’s NAV.

Commission payments to

the Commodity Broker, pursuant to the Commodity Broker Agreement, are on a contract-by-contract, or round-turn, basis.

the Managing Owner cannot anticipate the number of payments that will be required under these arrangements for future periods as

NAVs and trading activity will not be known until a future date.

The Fund’s agreement with the Commodity Broker may be

terminated by either party for various reasons.

The Fund has financial obligations to the Managing Owner and the Commodity Broker under the Trust Agreement and its agreement with the Commodity Broker (the “Commodity Broker Agreement”), respectively.

Management Fee payments made to the Managing Owner, pursuant to the Trust Agreement, are calculated as a fixed percentage of the Fund’s NAV.

Commission payments to the Commodity Broker, pursuant to the Commodity Broker Agreement, are on a contract-by-contract, or round-turn, basis.

As such, the Managing Owner cannot anticipate the number of payments that will be required under these arrangements for future periods as NAVs and trading activity will not be known until a future date.

The Fund’s agreement with the Commodity Broker may be terminated by either party for various reasons.

All Management Fees and commission payments are paid to the Managing Owner and the Commodity Broker, respectively.

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Operating Activities

Net cash flow provided by (used in) operating activities was $3.2 million and $34.8 million for the nine months ended September 30, 2024 and 2023, respectively.

These amounts primarily include net income (loss), net purchases and sales of money market mutual funds and net purchases and sales of United States Treasury Obligations which are held at fair value on the Statements of Financial Condition.

The Fund may hold United States Treasury Obligations, money market mutual funds and T-Bill ETFs (affiliated or otherwise) for margin and/or cash management purposes.

Net cash flow provided by (used in) operating activities was $(15.8) million and $1.8 million for the three months ended March 31, 2025 and 2024, respectively.

These amounts primarily include net income (loss), net purchases and sales of money market mutual funds and net purchases and sales of United States Treasury Obligations, affiliated investments and net deposits to/from the Commodity Broker.

The Fund invests in United States Treasury Obligations, money market mutual funds, T-Bill ETFs (affiliated or otherwise) and cash, if any, for margin and/or cash management purposes.

While the Fund’s performance reflects the appreciation and depreciation of those holdings, the Fund’s performance, whether positive or negative, is driven primarily by its strategy of trading DX Contracts with the aim of seeking to track the Index.

During the nine months ended September 30, 2024, $34.1 million was paid to purchase United States Treasury Obligations and $35.0 million was received from sales and maturing United States Treasury Obligations.

During the nine months ended September 30, 2023, $105.5 million was paid to purchase United States Treasury Obligations and $103.0 million was received from sales and maturing United States Treasury Obligations.

$29.1 million was received from sales of affiliated investments and $27.0 million was paid to purchase affiliated investments during the nine months ended September 30, 2024.

$123.8 million was received from sales of affiliated investments and $84.2 million was paid to purchase affiliated investments during the nine months ended September 30, 2023.

During the three months ended March 31, 2025, $0 was paid to purchase United States Treasury Obligations and $5.0 million was received from sales and maturing United States Treasury Obligations.

During the three months ended March 31, 2024, $4.9 million was paid to purchase United States Treasury Obligations and $5.0 million was received from sales and maturing United States Treasury Obligations.

$8.7 million was received from sales of affiliated investments and $28.8 million was paid to purchase affiliated investments during the three months ended March 31, 2025.

$8.3 million was received from sales of affiliated investments and $4.7 million was paid to purchase affiliated investments during the three months ended March 31, 2024.

During the three months ended

March 31, 2025, net deposits to/from the Commodity Broker was $2.6 million.

There were no net deposits to/from the Commodity Broker during the three months ended March 31, 2024.

Financing Activities

The Fund’s net cash flow provided by (used in) financing activities was $(3.2) million and $(35.4) million during the nine months ended September 30, 2024 and 2023, respectively.

This included $13.0 million and $43.4 million from Shares purchased by Authorized Participants and $16.2 million and $78.8 million from Shares redeemed by Authorized Participants during the nine months ended September 30, 2024 and 2023, respectively.

No distributions were paid to Shareholders during the nine months ended September 30, 2024.

The Fund’s net cash flow provided by (used in) financing activities was $15.8 million and $(1.8) million during the three months ended March 31, 2025 and 2024, respectively.

This included $20.9 million and $0.9 million from Shares purchased by Authorized Participants and $5.0 million and $2.7 million from Shares redeemed by Authorized Participants during the three months ended March 31, 2025 and 2024, respectively.

No distributions were paid to Shareholders during the three months ended March 31, 2025 and 2024, respectively.

Results of Operations

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024

The following graphs illustrate the percentage changes in (i) the market price of the Shares (as reflected by the line “Market”), (ii) the Fund’s NAV (as reflected by the line “NAV”), and (iii) the closing levels of the Index (as reflected by the line “Deutsche Bank Short USD Currency Portfolio Index-Excess Return TM ”).

Whenever the Treasury Income, Money Market Income and T-Bill ETF Income, if any, earned by the Fund exceeds Fund expenses, the price of the Shares generally exceeds the level of the Index at that time primarily because the Share price reflects Treasury Income, Money Market Income and T-Bill ETF Income from the Fund's collateral holdings whereas the Index does not consider such income.

Whenever the Treasury Income, Money Market Income and T-Bill ETF Income, if any, earned by the Fund exceeds Fund expenses, the price of the Shares generally exceeds the level of the Index at that time primarily because the Share price reflects Treasury Income, Money Market Income and T-Bill ETF Income, if any, from the Fund's collateral holdings whereas the Index does not consider such income.

There can be no assurance that the price of the Shares or the Fund’s NAV will exceed the Index levels.

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Similarly, no representation is being made that the Fund will generate profits or losses similar to the Fund’s past performance or changes in the Index closing levels.

COMPARISON OF MARKET, NAV AND DEUTSCHE BANK SHORT USD CURRENCY PORTFOLIO INDEX EXCESS RETURN TM FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR INDEX LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

COMPARISON OF MARKET, NAV AND DEUTSCHE BANK SHORT USD CURRENCY PORTFOLIO INDEX EXCESS RETURN TM FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR INDEX LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

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Performance Summary

This Report covers the three and nine months ended September 30, 2024 and 2023.

This Report covers the three months ended March 31, 2025 and 2024.

Past performance of the Fund is not necessarily indicative of future performance.

The Index is intended to reflect the change in market value of the Index Currencies.

The Index is intended to reflect the change in market value of the U.S.

dollar relative to the Index Currencies.

Past Index results are not necessarily indicative of future changes, positive or negative, in the Index closing levels.

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Past results of the Index and the Short Index–TR TM are not necessarily indicative of future changes, positive or negative, in the Index closing levels.

The section “Summary of the Deutsche Bank Short USD Currency Portfolio Index–Total Return TM and Underlying DX Contract Returns for the Three and Nine Months Ended September 30, 2024 and 2023” below provides an overview of the changes in the closing levels of the Short Index–TR TM by disclosing the change in closing levels of the underlying DX Contracts of the Index through a “surrogate” (and analogous) index that also reflects the return of 3-month United States Treasury Bills.

The section “Summary of the Deutsche Bank Short USD Currency Portfolio Index–Total Return TM and Underlying DX Contract Returns for the Three Months Ended March 31, 2025 and 2024” below provides an overview of the changes in the closing levels of the Short Index–TR TM by disclosing the change in closing levels of the underlying DX Contracts of the Index through a “surrogate” (and analogous) index that also reflects the return of 3-month United States Treasury Bills.

Please note also that the Fund’s objective is to track the Index (not the Short Index–TR) and the Fund does not attempt to outperform or underperform the Index.

Summary of the Deutsche Bank Short USD Currency Portfolio Index–Total Return TM and Underlying DX Contract Returns for the Three and Nine Months Ended September 30, 2024 and 2023

Summary of the Deutsche Bank Short USD Currency Portfolio Index–Total Return TM and Underlying DX Contract Returns for the Three Months Ended March 31, 2025 and 2024

AGGREGATE RETURNS FOR THE

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Three Months Ended

Nine Months Ended

September 30,

Underlying Index

If the Fund’s Treasury Income, Money Market Income and T-Bill ETF Income were to exceed the Fund’s fees and expenses, the aggregate return on an investment in the Fund would be expected to outperform the Index and underperform the Short Index – TR TM .

The only difference between (i) the Index (the “Excess Return Index”) and (ii) the Short Index – TR TM (the “Total Return Index”) is that the Excess Return Index does not include interest income from fixed income securities while the Total Return Index does include such a component.

The only difference between (i) the Index (the “Excess Return Index”) and (ii) the Short Index – TR TM (the “Total Return Index”) is that the Excess Return Index does not include interest income from a hypothetical Creation Unit of fixed income securities while the Total Return Index does include such a component.

Thus, the difference between the Excess Return Index and the Total Return Index is attributable entirely to the interest income attributable to the fixed income securities reflected in the Total Return Index.

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If the Fund’s fees and expenses were to exceed the Fund’s Treasury Income, Money Market Income and T-Bill ETF Income, if any, the aggregate return on an investment in the Fund is expected to underperform the Excess Return Index.

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024 COMPARED TO THE THREE MONTHS ENDED SEPTEMBER 30, 2023

Fund Share Price Performance

For the three months ended September 30, 2024, the NYSE Arca market value of each Share increased from $17.90 per Share to $18.93 per Share.

The Share price low and high for the three months ended September 30, 2024 and related change from the Share price on June 30, 2024 was as follows:

Shares traded at a low of $17.90 per Share (0.00%) on July 1, 2024, and a high of $19.01 per Share (+6.23%) on September 27, 2024.

The total return for the Fund on a market value basis was +5.75%.

The US dollar was heavily pressured in the third quarter of 2024, leading to gains for the Fund.

In addition to the highly anticipated Federal Reserve easing cycle which officially kicked off in September – the central bank announced a larger-than-expected interest rate cut of 0.50% – the Bank of Japan also surprised the market with a rate hike in August.

Higher interest rates generally boost a country’s currency and vice versa;

in this case, the events boosted the Japanese yen and pressured the US dollar.

For the three months ended September 30, 2023 the NYSE Arca market value of each Share decreased from $18.82 per Share to $18.37 per Share.

The Share price low and high for the three months ended September 30, 2023 and related change from the Share

price on June 30, 2023 was as follows:

Shares traded at a low of $18.27 per Share (-2.92%) on September 27, 2023, and a high of $19.45 per Share (+3.35%) on July 13, 2023.

The total return for the Fund on a market value basis was -2.39%.

dollar showed strength in the third quarter of 2023, up 3%, the most since the third quarter 2022, leading to losses for the Fund.

The euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc all depreciated against the U.S.

European currencies were pressured by a weakening Eurozone economic outlook and relatively more bearish central banks, while the Bank of Japan kept to its ultra-dovish policies, keeping global interest rate differentials with the Japanese yen wide open.

Compared to the other currencies, the Canadian dollar fared better, supported by the strong rebound in energy commodities – the country is a major exporter of crude oil.

Fund Share Net Asset Performance

For the three months ended September 30, 2024, the NAV of each Share increased from $17.90 per Share to $18.92 per Share.

Rising currency futures contracts prices for short DX Contracts during the three months ended September 30, 2024 contributed to a 4.51% increase in the level of the Index and to a 5.89% increase in the level of the Short Index–TR TM .

The total return for the Fund on a NAV basis was 5.70%.

Net income (loss) for the three months ended September 30, 2024 was $3.0 million, primarily resulting from $0.7 million of income, net realized gain (loss) of $1.5 million, net change in unrealized gain (loss) of $0.8 million and net operating expenses of $0.1 million.

For the three months ended September 30, 2023, the NAV of each Share decreased from $18.83 per Share to $18.38 per Share.

Falling currency futures contracts prices for short DX Contracts during the three months ended September 30, 2023 contributed to a 3.47% decrease in the level of the Index and to a 2.17% decrease in the level of the Short Index–TR TM .

The total return for the Fund on a NAV basis was -2.39%.

Net income (loss) for the three months ended September 30, 2023 was $(1.8) million, primarily resulting from $1.0 million of income, net realized gain (loss) of $(2.1) million, net change in unrealized gain (loss) of $(0.5) million and net operating expenses of $0.1 million.

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 COMPARED TO THE NINE MONTHS ENDED SEPTEMBER 30, 2023

FOR THE THREE MONTHS ENDED MARCH 31, 2025 COMPARED TO THE THREE MONTHS ENDED MARCH 31, 2024

Fund Share Price Performance

For the nine months ended September 30, 2024, the NYSE Arca market value of each Share increased from $18.43 per Share to $18.93 per Share.

The Share price low and high for the nine months ended September 30, 2024 and related change from the Share price on December 31, 2023 was as follows:

Shares traded at a low of $17.67 per Share (-4.10%) on April 16, 2024, and a high of $19.01 per Share (+3.18%) on September 27, 2024.

For the three months ended March 31, 2025, the NYSE Arca market value of each Share increased from $16.71 per Share to $17.55 per Share.

The Share price low and high for the three months ended March 31, 2025 and related change from the Share price on December 31, 2024 was as follows:

Shares traded at a low of $16.53 per Share (-1.08%) on January 13, 2025, and a high of $17.69 per Share (+5.87%) on March 18, 2025.

The total return for the Fund on a market value basis was +5.03%.

The US dollar performed positively in the first three quarters of 2024.

While the dollar had fallen to end 2023 on expectations for 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 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, the greenback moved lower in the third quarter with the Federal Reserve joining the others, announcing its first interest rate cut in September.

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

For the nine months ended September 30, 2023, the NYSE Arca market value of each Share decreased from $18.50 per Share to $18.37 per Share.

The Share price low and high for the nine months ended September 30, 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.

dollar moved lower in the first quarter of 2025 leading to strong gains for the Fund.

This marked a sharp reversal from the strong rally to end 2024, when the incoming U.S.

administration's tariff policy was expected to have a disproportionate adverse effect on the currency of the United States' trading partners, in turn boosting the U.S.

Inflation predictions also led the markets to re-evaluate the Federal Reserve’s easing plans, with the potential to leave interest rates higher for longer.

However, those factors are now hurting the U.S.

tariffs and stagflation fears have upended market confidence in the U.S., while the Federal Reserve may still reduce interest rates by 0.50% in 2025 (lower interest rates reduce demand for the U.S.

In contrast, the euro and other European currencies are being propped up by major defense and infrastructure spending plans, and the outlook looks brighter for the Japanese yen, with the Bank of Japan in a rate hiking cycle as the rest of the world’s major economies pulled back.

For the three months ended March 31, 2024 the NYSE Arca market value of each Share decreased from $18.43 per Share to $17.98 per Share.

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

Shares traded at a low of $17.87 per Share (-3.01%) on February 13, 2024, and a high of $18.28 per Share (-0.81%) on January 8, 2024.

The total return for the Fund on a market value basis was -2.39%.

Despite losses in the first quarter, the U.S.

dollar rebounded in the second and third quarter, resulting in a small gain in the first three quarters of 2023, which led to losses for the Fund.

To start the year, the dollar retreated rapidly on anticipation for a dovish pivot in the Federal Reserve’s rate hike plans.

However, in February, expectations for the Federal Reserve turned more hawkish amid stickier-than-expected US inflation and a strong US labor market.

In March, while the dollar initially continued higher on the financial sector turmoil, returning speculation for a softer Federal Reserve stance, amid the heightened uncertainty, sent prices lower to end the quarter.

Despite continued talks for a pause in US rate hikes, which actually happened in June, the dollar remained relatively well supported in the second quarter on hawkish Federal Reserve comments.

In the third quarter, the dollar experienced renewed strength amid US economic resilience and the Federal Reserve’s more hawkish, higher-for-longer rhetoric.

dollar performed positively in the first quarter of 2024, leading to losses for the Fund.

While the dollar had fallen to end 2023 on expectations for imminent rate cuts, the Federal Reserve stuck to its higher for longer rhetoric through the first two months of 2024 and inflation proved stickier than expected, forcing the market to delay easing expectations.

A resilient U.S.

economy also provided support.

Fund Share Net Asset Performance

For the nine months ended September 30, 2024, the NAV of each Share increased from $18.42 per Share to $18.92 per Share.

Rising currency futures contracts prices for short DX Contracts during the nine months ended September 30, 2024 contributed to a 0.72% decrease in the level of the Index and to a 3.31% increase in the level of the Short Index–TR TM .

For the three months ended March 31, 2025, the NAV of each Share increased from $16.73 per Share to $17.53 per Share.

Rising currency futures contracts prices for short DX Contracts during the three months ended March 31, 2025 contributed to a 3.85% increase in the level of the Index and to a 4.96% increase in the level of the Short Index–TR TM .

The total return for the Fund on a NAV basis was +4.78%.

Net income (loss) for the nine months ended September 30, 2024 was $1.2 million, primarily resulting from $2.3 million of income, net realized gain (loss) of $(0.2) million, net change in unrealized gain (loss) of $(0.6) million and operating expenses of $0.3 million.

For the nine months ended September 30, 2023, the NAV of each Share decreased from $18.50 per Share to $18.38 per Share.

Falling currency futures contracts prices for short DX Contracts during the nine months ended September 30, 2023 contributed to a 3.61% decrease in the level of the Index and to a 0.12% increase in the level of the Short Index–TR TM .

Net income (loss) for the three months ended March 31, 2025 was $2.3 million, primarily resulting from $0.6 million of income, net realized gain (loss) of $1.4 million, net change in unrealized gain (loss) of $0.5 million and net operating expenses of $0.1 million.

For the three months ended March 31, 2024, the NAV of each Share decreased from $18.42 per Share to $17.98 per Share.

Falling currency futures contracts prices for short DX Contracts during the three months ended March 31, 2024 contributed to a 3.45% decrease in the level of the Index and to a 2.17% decrease in the level of the Short Index–TR TM .

The total return for the Fund on a NAV basis was -2.39%.

Net income (loss) for the nine months ended September 30, 2023 was $(1.1) million, primarily resulting from $3.0 million of income, net realized gain (loss) of $(2.4) million, net change in unrealized gain (loss) of $(1.2) million and operating expenses of $0.5 million.

Net income (loss) for the three months ended March 31, 2024 was $(1.5) million, primarily resulting from $0.9 million of income, net realized gain (loss) of $(0.3) million, net change in unrealized gain (loss) of $(2.0) million and net operating expenses of $0.1 million.

Critical Accounting Estimates

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Quantitative Forward-Looking Statements

The following quantitative disclosures regarding the Fund’s market risk exposures contain “forward-looking statements” within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Exchange Act).

All quantitative disclosures in this section are deemed to be forward-looking statements for purposes of the safe harbor, except for statements of historical fact (such as the dollar amount of maintenance margin required for market risk sensitive instruments held at the end of the reporting period).

All quantitative disclosures in this section are deemed to be forward-looking statements for purposes of the safe harbor, except for statements of historical fact (such as the U.S.

dollar amount of maintenance margin required for market risk sensitive instruments held at the end of the reporting period).

Value at Risk (“VaR”) is a statistical measure of the value of losses that would not be expected to be exceeded over a given time horizon and at a given probability level arising from movement of underlying risk factors.

1 unchanged sentence

VaR is measured over a specified holding period (one day) and to a specified level of statistical confidence (99th percentile).

However, the inherent uncertainty in the markets in which the Fund trades and the recurrence in the markets traded by the Fund of market movements far exceeding expectations could result in actual trading or non-trading losses far beyond the indicated VaR or the Fund’s experience to date (i.e., “risk of ruin”).

However, the inherent uncertainty in the markets in which the Fund trades and the recurrence in the markets traded by the Fund of market movements far

exceeding expectations could result in actual trading or non-trading losses far beyond the indicated VaR or the Fund’s experience to date (i.e., “risk of ruin”).

In light of these considerations, as well as the risks and uncertainties intrinsic to all future projections, the following VaR presentation does not constitute any assurance or representation that the Fund’s losses in any market sector will be limited to VaR.

1 unchanged sentence

The Fund calculates VaR using the actual historical market movements of the Fund’s net assets.

The following table indicates the trading VaR associated with the Fund’s net assets as of September 30, 2024.

For the Nine Months Ended

September 30, 2024

The following table indicates the trading VaR associated with the Fund’s net assets as of March 31, 2025.

For the Three Months Ended

March 31, 2025

Daily Volatility

1 unchanged sentence

Number of times

Invesco DB US Dollar Index Bearish Fund

Invesco DB U.S.

Dollar Index Bearish Fund

The following table indicates the trading VaR associated with the Fund’s net assets as of December 31, 2024.

4 unchanged sentences

Number of times

Invesco DB US Dollar Index Bearish Fund

Invesco DB U.S.

Dollar Index Bearish Fund

* The VaR represents the one day downside risk, under normal market conditions, with a 99% confidence level.

36 unchanged sentences

Changes in Internal Control Over Financial Reporting

There has been no change in internal control over financial reporting (as defined in the Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the Fund’s quarter ended September 30, 2024 that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

There has been no change in internal control over financial reporting (as defined in the Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the Fund’s quarter ended March 31, 2025 that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

OTHER INFORMATION

Legal Proceedings.

Not applicable.

Ri sk Factors.

There are no material changes from risk factors as previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023, filed February 23, 2024.

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-Q

Item 2. Management’s Discussion and Analysis