Company Overview

Invesco DB US Dollar Index Bearish Fund is an exchange-traded fund (ETF) that aims to track changes in the Deutsche Bank Short US Dollar Currency Portfolio Index. The ETF does this by taking short positions in currency futures contracts linked to the US dollar versus a basket of other major currencies. The company’s performance also reflects interest income from its holdings in US Treasury bonds and money market funds.

Financial Performance

In the first quarter of 2024, the ETF incurred a net loss of $0.43 per share, compared to net income of $0.28 per share in the first quarter of 2023. The total return of the fund at net asset value was -2.33% in the recent quarter, versus +1.51% in the prior year period.

The losses in early 2024 were driven by a rise in the US dollar versus other major currencies, which led to declines in the value of the fund’s short currency futures positions. Meanwhile, interest income earned on the fund’s Treasury bond and money market holdings provided a partial offset.

Revenue and Profit Trends

As an ETF, the fund does not have traditional revenue and profit metrics. Its financial performance is tied to changes in the value of the index it tracks along with any interest income earned on collateral holdings.

In the first quarter of 2024, the fund saw losses on its currency futures holdings as the US dollar strengthened. However, it continued to earn steady interest income on its Treasury and money market securities. This interest income helped offset a portion of the currency losses.

Balance Sheet Analysis

The fund has a strong liquidity position, with the majority of assets held in cash equivalents and margin collateral such as Treasury bonds. This provides flexibility to maintain currency futures positions as needed to track the index.

As of March 31, 2024, total assets were approximately $246 million, composed primarily of $184 million in Treasury Obligations, $36 million in money market funds, and $14 million in receivables/payables from currency futures positions. The fund had no outstanding liabilities on its balance sheet.

Future Outlook

The near-term outlook for the Invesco DB US Dollar Index Bearish Fund will continue to be driven by expectations for the dollar versus other major currencies. If the US dollar weakens going forward as global growth recovers, the fund’s short futures strategy could potentially benefit. However, the dollar could see continued haven demand if recession risks escalate. Interest income will provide some support regardless of currency movements.

Tables:

Net Asset Value per Share

| March 31, 2024 | March 31, 2023 |

$17.99

$18.78

Total Return at Net Asset Value

| March 31, 2024 | March 31, 2023 |

-2.33%

+1.51%

Index Return

| March 31, 2024 | March 31, 2023 |

-2.17%

+1.83%