What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-08-07 compared with 2026-05-07 · 94 added, 51 removed, 264 unchanged (35% of the section changed)

150 unchanged sentences

Operating Activities

Net cash flow provided by (used in) operating activities was $(6.8) million and $(15.8) million for the three months ended March 31, 2026 and 2025, respectively.

Net cash flow provided by (used in) operating activities was $23.3 million and $(87.0) million for the six months ended June 30, 2026 and 2025, 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.

1 unchanged sentence

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 three months ended March 31, 2026 and 2025, there were no purchases of United States Treasury Obligations.

$5.0 million was received from sales and maturing United States Treasury Obligations during the three months ended March 31, 2025.

$18.8 million was received from sales of affiliated investments and $26.2 million was paid to purchase affiliated investments during the three months ended March 31, 2026.

$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.

During the three months ended March 31, 2026 and 2025, net deposits to/from the Commodity Broker was $3.7 million and $2.6 million, respectively.

During the six months ended June 30, 2026 and 2025, there were no purchases of United States Treasury Obligations.

$15.0 million was received from sales and maturing United States Treasury Obligations during the six months ended June 30, 2025.

$66.1 million was received from sales of affiliated investments and $44.6 million was paid to purchase affiliated investments during the six months ended June 30, 2026.

$9.6 million was received from sales of affiliated investments and $110.9 million was paid to purchase affiliated investments during the six months ended June 30, 2025.

During the six months ended June 30, 2026 and 2025, net deposits to/from the Commodity Broker were $4.4 million and $10.4 million, respectively.

Financing Activities

The Fund’s net cash flow provided by (used in) financing activities was $6.8 million and $15.8 million during the three months ended March 31, 2026 and 2025, respectively.

This included $24.0 million and $20.9 million from Shares purchased by Authorized Participants and $17.2 million and $5.0 million from Shares redeemed by Authorized Participants during the three months ended March 31, 2026 and 2025, respectively.

No distributions were paid to Shareholders during the three months ended March 31, 2026 and 2025, respectively.

The Fund’s net cash flow provided by (used in) financing activities was $(23.3) million and $87.0 million during the six months ended June 30, 2026 and 2025, respectively.

This included $34.1 million and $93.0 million from Shares purchased by Authorized Participants and $57.4 million and $5.9 million from Shares redeemed by Authorized Participants during the six months ended June 30, 2026 and 2025, respectively.

No distributions were paid to Shareholders during the six months ended June 30, 2026 and 2025, respectively.

Results of Operations

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

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 ”).

3 unchanged sentences

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 MONTHS ENDED MARCH 31, 2026 AND 2025

COMPARISON OF MARKET, NAV AND DEUTSCHE BANK SHORT USD CURRENCY PORTFOLIO INDEX EXCESS RETURN TM FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

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.

Performance Summary

This Report covers the three months ended March 31, 2026 and 2025.

This Report covers the three and six months ended June 30, 2026 and 2025.

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

6 unchanged sentences

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 level.

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, 2026 and 2025” 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 and Six Months Ended June 30, 2026 and 2025” 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 Months Ended March 31, 2026 and 2025

Summary of the Deutsche Bank Short USD Currency Portfolio Index–Total Return TM and Underlying DX Contract Returns for the Three and Six Months Ended June 30, 2026 and 2025

Three Months Ended

Six Months Ended

Underlying Index

9 unchanged sentences

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 MARCH 31, 2026 COMPARED TO THE THREE MONTHS ENDED MARCH 31, 2025

FOR THE THREE MONTHS ENDED JUNE 30, 2026 COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2025

Fund Share Price Performance

For the three months ended March 31, 2026, the NYSE Arca market value of each Share decreased from $18.25 per Share to $18.02 per Share.

The Share price low and high for the three months ended March 31, 2026 and related change from the Share price on December 31, 2025 was as follows:

Shares traded at a low of $17.89 per Share (-1.97%) on March 30, 2026, and a high of $18.73 per Share (+2.63%) on January 27, 2026.

For the three months ended June 30, 2026, the NYSE Arca market value of each Share decreased from $18.02 per Share to $17.87 per Share.

The Share price low and high for the three months ended June 30, 2026 and related change from the Share price on March 31, 2026 was as follows:

Shares traded at a low of $17.77 per Share (-1.39%) on June 24, 2026, and a high of $18.41 per Share (+2.16%) on May 08, 2026.

The total return for the Fund on a market value basis was -0.83%.

dollar strengthened modestly in the first quarter of 2026, resulting in negative performance for the Fund.

Heightened geopolitical uncertainty stemming from escalating tensions between Iran and the United States, including the effective closure of the Strait of Hormuz, raised concerns around energy supply disruptions and renewed inflationary pressures.

These risks contributed to fears of energy shocks, food price inflation, and broader ripple effects across the global economy, prompting markets to push out expectations for Federal Reserve rate cuts.

Demand for the U.S.

dollar was supported by safe‑haven flows, defensive positioning, and a preference for liquidity amid uncertain global growth and financial conditions.

While intermittent improvements in risk sentiment

led to brief pullbacks, risk-off dynamics ultimately supported the U.S.

dollar over the quarter, weighing on the Fund's bearish exposure.

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.

dollar strengthened during the second quarter of 2026 leading to losses for the Fund, as rising inflation concerns tied to higher energy prices led markets to scale back expectations for Federal Reserve rate cuts.

As the U.S.-Iran conflict raised concerns that energy-driven inflation could become more persistent, some market participants even began discussing the possibility of rate hikes, supporting U.S.

yields and the dollar.

The shift in policy expectations pressured several major currencies, including the euro, which faced headwinds from soft economic growth and a more accommodative European Central Bank, and the Japanese yen, which remained weighed down by the Bank of Japan's gradual approach to policy normalization.

Sterling also weakened against the dollar as investors favored U.S.

assets amid elevated global uncertainty.

Overall, widening interest rate differentials and continued demand for dollar liquidity supported gains in the U.S.

dollar during the quarter.

For the three months ended June 30, 2025, the NYSE Arca market value of each Share increased from $17.55 per Share to $18.92 per Share.

The Share price low and high for the three months ended June 30, 2025 and related change from the Share price on March 31, 2025 was as follows:

Shares traded at a low of $17.54 per Share (-0.06%) on April 01, 2025, and a high of $18.92 per Share (+7.81%) on June 30, 2025.

The total return for the Fund on a market value basis was +7.81%.

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.

dollar remained under pressure in the second quarter of 2025, extending its first quarter weakness, leading to gains for the Fund.

While the initial tariff driven rally in late 2024 was predicated on relative U.S.

strength versus trading partners, the narrative has since reversed.

The tariffs announced on Liberation Day in April undermined U.S.

consumer and business confidence, fueling

domestic growth concerns and de-dollarization trades.

The 90-day tariff truce with China temporarily eased trade tensions in mid-May but continued uncertainty weighed on gains.

Meanwhile, the Federal Reserve maintained its dovish stance, with markets still pricing in 50 basis points of interest rate cuts for the year, further eroding yield support for the greenback.

In contrast, the euro found support from resilient economic data and fiscal stimulus tied to defense and infrastructure, while the yen benefited from the Bank of Japan’s continued tightening bias.

With global policy divergence widening and confidence in U.S.

fiscal discipline faltering, the U.S.

dollar’s outlook remained clouded heading into the second half of the year.

Fund Share Net Asset Performance

For the three months ended March 31, 2026, the NAV of each Share decreased from $18.23 per Share to $18.00 per Share.

Falling currency futures contracts prices for short DX Contracts during the three months ended March 31, 2026 contributed to a 2.00% decrease in the level of the Index and to a 1.11% decrease in the level of the Short Index–TR TM .

For the three months ended June 30, 2026, the NAV of each Share decreased from $18.00 per Share to $17.86 per Share.

Falling currency futures contracts prices for short DX Contracts during the three months ended June 30, 2026 contributed to a 1.46% decrease in the level of the Index and to a 0.55% decrease in the level of the Short Index–TR TM .

The total return for the Fund on a NAV basis was -0.78%.

Net income (loss) for the three months ended March 31, 2026 was $(2.3) million, primarily resulting from $1.3 million of income, net realized gain (loss) of $(1.8) million, net change in unrealized gain (loss) of $(1.6) million and net operating expenses of $0.2 million.

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 .

Net income (loss) for the three months ended June 30, 2026 was $(0.4) million, primarily resulting from $1.1 million of income, net realized gain (loss) of $(1.0) million, net change in unrealized gain (loss) of $(0.4) million and net operating expenses of $0.2 million.

For the three months ended June 30, 2025, the NAV of each Share increased from $17.53 per Share to $18.90 per Share.

Rising currency futures contracts prices for short DX Contracts during the three months ended June 30, 2025 contributed to a 6.89% increase in the level of the Index and to an 8.04% increase in the level of the Short Index–TR TM .

The total return for the Fund on a NAV basis was +7.82%.

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.

Net income (loss) for the three months ended June 30, 2025 was $7.9 million, primarily resulting from $1.3 million of income, net realized gain (loss) of $4.0 million, net change in unrealized gain (loss) of $2.8 million and net operating expenses of $0.2 million.

FOR THE SIX MONTHS ENDED JUNE 30, 2026 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2025

Fund Share Price Performance

For the six months ended June 30, 2026, the NYSE Arca market value of each Share decreased from $18.25 per Share to $17.87 per Share.

The Share price low and high for the six months ended June 30, 2026 and related change from the Share price on December 31, 2025 was as follows:

Shares traded at a low of $17.77 per Share (-2.63%) on June 24, 2026, and a high of $18.73 per Share (+2.63%) on January 27, 2026.

The total return for the Fund on a market value basis was -2.08%.

dollar strengthened in the first half of 2026, supported by its role as a global safe-haven asset amid heightened geopolitical uncertainty and shifting monetary policy expectations.

This led to losses for the Fund.

Escalating tensions between the United States and Iran, the closure of the Strait of Hormuz, and broader market volatility increased demand for dollar-denominated assets during the first half of the year.

Rising energy prices also fueled inflation concerns, prompting markets to scale back expectations for Federal Reserve rate cuts, with some investors even discussing the possibility of rate hikes.

The resulting increase in U.S.

yields supported the dollar against most major currencies, particularly the euro and Japanese yen.

The euro faced headwinds from weak economic growth and a relatively accommodative European Central Bank, while the yen remained pressured by the Bank of Japan's gradual approach to policy normalization.

Despite periods of volatility tied to ceasefire negotiations and changing geopolitical developments, safe-haven demand and widening interest rate differentials helped support the U.S.

dollar during the first half of 2026.

For the six months ended June 30, 2025, the NYSE Arca market value of each Share increased from $16.71 per Share to $18.92 per Share.

The Share price low and high for the six months ended June 30, 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 $18.92 per Share (+13.23%) on June 30, 2025.

The total return for the Fund on a market value basis was +13.22%.

dollar declined sharply in the first half of 2025, resulting in positive performance for the Fund.

This marks a sharp reversal from the strong rally that closed out 2024, when President Trump’s tariff policy was expected to disproportionately impact trading partners’ currencies and support the greenback.

However, those same policies have since undermined U.S.

investor and business confidence, with stagflation and domestic growth concerns becoming top of mind.

This, coupled with geopolitical instability in the second quarter, pushed investors further away from the U.S.

dollar and towards safe havens like the Swiss franc and Japanese yen.

The euro was also buoyed by defense and infrastructure stimulus, and the Japanese yen strengthened on expected Bank of Japan rate hikes, which added pressure to the U.S.

Finally, the Federal Reserve’s dovish stance, maintaining 50 basis points of expected interest rate cuts, also eroded yield support for the U.S.

Fund Share Net Asset Performance

For the six months ended June 30, 2026, the NAV of each Share decreased from $18.23 per Share to $17.86 per Share.

Falling currency futures contracts prices for short DX Contracts during the six months ended June 30, 2026 contributed to a 3.43% decrease in the level of the Index and to a 1.66% decrease in the level of the Short Index–TR TM .

The total return for the Fund on a NAV basis was -2.03%.

Net income (loss) for the six months ended June 30, 2026 was $(2.8) million, primarily resulting from $2.4 million of income, net realized gain (loss) of $(2.7) million, net change in unrealized gain (loss) of $(2.0) million, and net operating expenses of $0.5 million.

For the six months ended June 30, 2025, the NAV of each Share increased from $16.73 per Share to $18.90 per Share.

Rising currency futures contracts prices for short DX Contracts during the six months ended June 30, 2025 contributed to an 11.00% increase in the level of the Index and to a 13.39% increase in the level of the Short Index–TR TM .

The total return for the Fund on a NAV basis was +12.97%.

Net income (loss) for the six months ended June 30, 2025 was $10.3 million, primarily resulting from $1.9 million of income, net realized gain (loss) of $5.4 million, net change in unrealized gain (loss) of $3.3 million and net operating expenses of $0.3 million.

Critical Accounting Estimates

12 unchanged sentences

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 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 U.S.

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).

6 unchanged sentences

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 March 31, 2026.

For the Three Months Ended

March 31, 2026

The following table indicates the trading VaR associated with the Fund’s net assets as of June 30, 2026.

For the Six Months Ended

June 30, 2026

Daily Volatility

45 unchanged sentences

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of the management of the Managing Owner, including Brian Hartigan, its Principal Executive Officer, and Kelli Gallegos, its Principal Financial and Accounting Officer, Investment Pools, the Fund carried out an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rule 13a-15(e) or 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this Quarterly Report, and, based upon that evaluation, Brian Hartigan, the Principal Executive Officer of the Managing Owner, and Kelli Gallegos, the Principal Financial and Accounting Officer, Investment Pools, of the Managing Owner, concluded that the Fund’s disclosure controls and procedures were effective to provide reasonable assurance that information the Fund is required to disclose in the reports that it files or submits with the Securities and Exchange Commission (the “SEC”) under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and to provide reasonable assurance that information required to be disclosed by the Fund in the reports that it files or submits under the Exchange Act is accumulated and communicated to management of the Managing Owner, including its Principal Executive Officer and Principal Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of the management of the Managing Owner, including Brian Hartigan, its Principal Executive Officer, and Kelli Gallegos, its Principal Financial and Accounting Officer, Investment Pools, the Fund carried out an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this Quarterly Report, and, based upon that evaluation, Brian Hartigan, the Principal Executive Officer of the Managing Owner, and Kelli Gallegos, the Principal Financial and Accounting Officer, Investment Pools, of the Managing Owner, concluded that the Fund’s disclosure controls and procedures were effective to provide reasonable assurance that information the Fund is required to disclose in the reports that it files or submits with the Securities and Exchange Commission (the “SEC”) under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and to provide reasonable assurance that information required to be disclosed by the Fund in the reports that it files or submits under the Exchange Act is accumulated and communicated to management of the Managing Owner, including its Principal Executive Officer and Principal Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

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 March 31, 2026 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 Rules 13a-15(f) and 15d-15(f) promulgated under the Exchange Act) that occurred during the Fund’s quarter ended June 30, 2026 that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

OTHER INFORMATION

1 unchanged sentence

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, 2025, filed with the SEC on March 2, 2026.

There are no material changes from the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 2, 2026.

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