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Frequently Asked Questions

 

How are shares of the CurrencyShares offered?

Each CurrencyShares trust issues shares that represent units of fractional undivided beneficial interest in, and ownership of, the trust. Shares may be purchased from each trust only in one or more blocks of 50,000 Shares, called “baskets”. The trusts issue shares in baskets on a continuous basis to authorized participants (Depository trust Company participants that are registered broker-dealers or other securities market participants, such as a bank or other financial institution, that are not required to register as a broker-dealer to engage in securities transactions, and that has entered into a participant agreement with the trustee). It is expected that shares of each trust will be offered and sold to the public by authorized participants at varying prices in U.S. dollars to be determined by reference to, among other things, the market price of the currency held by the particular trust and the trading price of the shares on the NYSE Arca at the time of each sale. Authorized Participants will not receive from the trust, the Sponsor or any of their affiliates, any fee or other compensation in connection with the sale of shares, although they may receive commissions or fees from investors who purchase shares through their commission- or fee-based brokerage accounts.
 

How are shares of each CurrencyShares product traded?

Shares of each CurrencyShares product will trade like any stock or traditional exchange traded fund on the NYSE Arca. They are available in margin accounts and can be sold short (even on a downtick). The shares will also have other brokerage features such as the ability to place market, limit or stop-loss orders. The shares will have a bid/ask spread and will be subject to a per-share commission charge or wrap fee charge (depending on the account).
 

Are the products benchmarked to an index?

No. Each trust only holds the foreign currency indicated by the trust's name in a bank account with JPMorgan Chase Bank, N.A., London Branch. The trust does track the price of the underlying currency based on the World Markets Company PLC ("WM") Closing Spot Rate. The trustee will calculate, and the Sponsor will publish, each trust’s net asset value (“NAV”) each business day. The NAV of each trust is the aggregate value, expressed in U.S. dollars, of the trust’s assets. The NAV will be expressed in U.S. dollars based on the World Markets Company PLC ("WM") Closing Spot Rate. The World Markets Company PLC ("WM") Closing Spot Rate is the exchange rate of the U.S. dollar and the applicable foreign currency as determined by World Markets Company PLC ("WM") as of 4:00 pm London time.
 

Where can I get foreign currency pricing or additional information on the value of CurrencyShares?

Guggenheim Investments provides the spot price of each foreign currency held by the CurrencyShares trusts in real-time on this web site. The spot price is the current price at which a particular security can be bought or sold at a specified time and place. The indicative value will also be provided on a real-time and delayed basis along with other product information, including a delayed last trade and the number of currency units per share.
 

Are the CurrencyShares products registered under the Investment Company Act of 1940?

No, and therefore they are not managed like mutual funds. Rather, the CurrencyShares trusts are exchange traded products that are registered under the Securities Act of 1933 and the Securities Exchange Act of 1934, and accordingly are subject to SEC prospectus delivery and periodic reporting requirements.
 

Is there a portfolio manager?

No. Each CurrencyShares trust holds only the foreign currency indicated in the trust name. None of the CurrencyShares trusts are actively managed. The trustee (Bank of New York Mellon) is responsible for the day-to-day administration of each trust; the depository (JPMorgan Chase, London) will accept deposits of the appropriate foreign currency for each CurrencyShares trust and facilitate the transfer of the foreign currency into and out of the trust.
 

What is the investment objective of the CurrencyShares trusts?

The investment objective of each CurrencyShares trust is for the Shares of that trust to reflect the price of the currency held by the trust. Earning income for shareholders is not the objective of any trust. Whether investors earn income will primarily depend on the relative value of the currency held by the trust and the U.S. dollar. If the currency held by a trust appreciates relative to the U.S. dollar and a shareholder sells shares, the shareholder will earn income. If the currency held by a trust depreciates relative to the U.S. dollar and a shareholder sells shares, the shareholder will incur a loss.
 

What expenses will shareholders of the CurrencyShares trusts incur?

The trust’s only ordinary recurring expense is expected to be the sponsor’s fee. The Sponsor’s fee accrues daily at an annual nominal rate of 0.40% of the currency in the trust and is paid monthly. To pay the Sponsor’s fee, the trustee will first use interest earned by the trust. If that is not sufficient to pay the Sponsor’s fee, then the trustee will withdraw currency deposited in the trust as needed. The Sponsor is obligated to pay various administrative and marketing expenses of the trust out of the fee that it earns. The trusts may incur extraordinary expenses in addition to the Sponsor’s fee; if these additional expenses are incurred, the trust will be required to pay these expenses by withdrawing deposited currency and the amount of currency represented by a Share would decline. Accordingly, the Shareholders will effectively bear the cost of these other expenses, if incurred. This may also result in adverse tax consequences for shareholders.
 

What are the tax implications for investors?

Shareholders of each CurrencyShares trust will be treated for U.S. federal income tax purposes as if they owned a pro rata share of the assets held by the particular trust. Because of this, the income and expense's of each trust “flow through” to the trust's shareholders. Shareholders will be required to recognize gains or losses when the trust converts the foreign currency it holds to U.S. dollars to pay the Sponsor's fee or to make distributions to the trust's shareholders. Shareholders should refer to the applicable CurrencyShares trust prospectus for important tax information.
 

Where can I obtain a prospectus?

A copy of the final prospectus related to the securities of each CurrencyShares trust may be obtained for free by visiting EDGAR on the SEC web site at www.sec.gov or the CurrencyShares web site by clicking here, or by contacting Guggenheim Investments 805 King Farm Boulevard, Suite 600, Rockville, MD 20850 (800.820.0888).
 

Spot Price BidSpot Price AskIntraday Indicative Value data 5-10 second delay.

Performance displayed represents past performance, which is no guarantee of future results.
Investment return and principal value will fluctuate so that when shares of the CurrencyShares Trusts are redeemed, they may be worth more or less than original cost. Current performance may be lower or higher than the performance data quoted. Returns for performance under one year are cumulative, not annualized. Performance results are short-term and may not provide an adequate basis for evaluating the performance potential of the product over varying market conditions or economic cycles. Prices shown are in U.S. Dollars unless otherwise noted.


The Current Interest Rate accrues daily and pays out monthly for the respective currency's interest bearing account. The Current Interest Rate, set by the Depository, can fluctuate as frequently as daily to reflect the local overnight rate, market conditions and the Depository's liquidity needs. The 40 bps management fee charged by the sponsor will be paid out of interest earned and has not been accounted for in the Current Interest Rate stated above. Interest earned by the trust, if any, will accrue daily and will be used to pay trust expenses. Any excess interest will be distributed to shareholders monthly. There is no assurance any interest will be paid, and if paid, may not be the best available. If the trust’s expenses exceed interest earned, the trustee will withdraw the respective currency from the Trust to pay the excess, thereby reducing the amount of the currency represented by each share on an ongoing basis and may result in adverse tax consequences for shareholders.

Each of the CurrencyShares® Australian Dollar (FXA) Trust, CurrencyShares® British Pound Sterling (FXB) Trust, CurrencyShares® Canadian Dollar (FXC) Trust, CurrencyShares® Chinese Renminbi (FXCH) Trust, CurrencyShares® Euro (FXE) Trust, CurrencyShares® Japanese Yen (FXY) Trust, CurrencyShares® Singapore Dollar (FXSG) Trust, CurrencyShares® Swedish Krona (FXS) Trust and CurrencyShares® Swiss Franc (FXF) Trust (each a “Trust” and collectively, the “Trusts”) has filed a registration statement (including a prospectus) with the SEC for the offerings to which this communication relates. Before you invest in the shares of a Trust, you should read the prospectus in the registration statement and other documents the Trust has filed with the SEC for more complete information about the Trust and its offering. You may get these documents for free by visiting EDGAR on the SEC web site at www.sec.gov. Alternatively, you may click the links above or the Trust will arrange to send you its prospectus if you request it by calling toll-free 800.820.0888.

The CurrencyShares Trusts are not investment companies registered under the Investment Company Act of 1940. The Trust(s) are not subject to the regulatory requirement of investment companies.

The value of the shares of each CurrencyShares Trust relates directly to the value of the foreign currency held by the particular Trust. This creates a concentration risk associated with fluctuations in the price of the applicable foreign currency. Accordingly, a decline in the price of that currency will have an adverse effect on the value of the shares of the particular CurrencyShares Trust. Factors that may have the effect of causing a decline in the price of a foreign currency include national debt levels and trade deficits, domestic and foreign inflation rates, investment and trading activities of institutions and global or regional political, economic or financial events and situations. Shares of each CurrencyShares Trust are also subject to risks similar to those of stocks and may not be suitable for all investors.

This web site is for U.S. investors and the information contained within it is not an offer to sell or a solicitation of an offer to buy shares in any CurrencyShares Trust, nor shall any such shares be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the laws of such jurisdiction.

The information on this web site is for informational purposes only and is not, and is not intended to be, a complete discussion of all material information you should know about the CurrencyShares Trusts.

CurrencyShares® are subject to risks similar to those of stocks and may not be suitable for all investors. The value of the shares of each CurrencyShares Trust relates directly to the value of the foreign currency held by the particular Trust. This creates a concentration risk associated with fluctuations in the price of the applicable foreign currency. Accordingly, a decline in the price of that currency will have an adverse effect on the value of the shares of the particular CurrencyShares Trust. Factors that may have the effect of causing a decline in the price of a foreign currency include national debt levels and trade deficits, domestic and foreign interest rates, investment and trading activities of institutions and global or regional political, economic or financial events and situations. Investors should consider the investment objectives, risks, charges and expenses of these products carefully before investing. The prospectus pertaining to each product contains this and other information about the product. Please read the applicable prospectus, including the Risk Factors section, carefully before you invest. Shares can be bought and sold through a broker and the purchasers or sellers may have to pay brokerage commissions in connection with the transaction. Investment returns and principal value will fluctuate so that shares may be worth more or less than original cost. Shares may only be redeemed directly from the Trust by Authorized Participants via baskets (as defined in the prospectus). There can be no assurance that an active trading market for the shares will develop or be maintained.

Shares of each CurrencyShares Trust can be bought and sold through a broker; as such, investors may be required to pay brokerage commissions in connection with a purchase or sale. There can be no assurance that an active trading market for the shares of any CurrencyShares Trust will develop or be maintained. The risks associated with each of the CurrencyShares Trusts are not identical because of differences in the economies underlying each CurrencyShares Trust, as well as other considerations. For a more complete discussion of risk factors applicable to each CurrencyShares Trust, carefully read the particular Trust's prospectus.

Interest earned on the deposited currency, if any, will be used to pay the Trust's expenses. Any excess interest will be distributed to Shareholders monthly. Such interest is not expected to form a significant part of the Shareholders' investment return. If the Trust's expenses exceed interest earned, the Trustee will withdraw respective currency held by the Trust to pay the excess, thereby reducing the number of currency per Share. This may result in adverse tax consequences for shareholders. 

The NAV and Market Close performance may differ. A major reason for the difference is that timing discrepancies can exist between the NAV, which is calculated using WM/Reuters Closing Spot Rate and Market Close, which is calculated using Closing Price (last trade). WM/Reuters Closing Spot Rate is the exchange rate of the U.S. Dollar and the applicable foreign currency as determined by WM/Reuters as of 4:00 PM London time.  

NAV is calculated using WM/Reuters Closing Spot Rate. WM/Reuters Closing Spot Rate is the exchange rate of the U.S. Dollar and the applicable foreign currency as determined by WM/Reuters as of 4:00 PM London time. Prior to 11/13/2008, NAVs for each CurrencyShares Trust, except the CurrencyShares Russian Ruble Trust and the CurrencyShares Chinese Renminbi Trusts, were calculated using the Noon Buying Rate, as determined by the Federal Reserve Bank of New York. For more information, please read the prospectus. 

The WM/Reuters Closing Spot rates are provided by WM/Reuters and are used for certain currencies (the “Rates”) displayed herein. WM/Reuters shall not be liable for any errors in or delays in providing or making available the WM/Reuters Closing Spot rates, nor for any actions taken in reliance on the same. This information cannot be used, reproduced, distributed, redistributed, licensed or disclosed in any way without a written agreement with WM/Reuters. 

Spot Prices provided by FactSet. No warranty is given for the accuracy of these prices and no liability is accepted for reliance thereon. Prices are provided on a reasonable efforts basis and delays may occur both because of the delay in third parties communicating the information to the site and because of delays inherent in posting information over the Internet. Prices shown are indicative only and do not represent actionable quotations on prices of actual trades. 

The CurrencyShares Trusts are distributed by Guggenheim Funds Distributors, LLC. Guggenheim Investments represents the investment management businesses of Guggenheim Partners, LLC (“Guggenheim”), which includes Security Investors, LLC (“SI”). Guggenheim Specialized Products, LLC (“GSP”), the sponsor for the CurrencyShares Trusts, is a wholly owned subsidiary of SI. Guggenheim Funds Distributors, LLC, is affiliated with Guggenheim, SI and GSP.

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