CurrencyShares Home   /   About Us   /   Glossary of Terms

Glossary of Terms

Acronym Name Description
A$ Australian dollar  
AUD Australian dollar  
BLS Bureau of Labor Statistics The Bureau of Labor Statistics is the principal fact-finding agency for the Federal Government in the broad field of labor economics and statistics.
BOC Bank of Canada  
BOE Bank of England  
BOJ Bank of Japan  
BOM Bank of Mexico  
Bp(s) Basis point(s) A unit of measurement that is equal to 1/100th of 1%.
C$ Canadian dollar  
CAD Canadian dollar  
Carry Trade A strategy that attempts to capture the difference in interest rates between a relatively high yielding currency and a relatively low yielding currency. An investor sells the lower yielding currency and uses the proceeds to purchase a higher yielding currency.
CHF Swiss franc  
Core Inflation Core Inflation is a measurement of inflation that strips out some of the most volatile components in an attempt to give a better picture of the true underlying inflation trend.
Correlation Positive or direct when two variables move in the same direction and negative or inverse when they move in opposite directions.
CPI Consumer Price Index The Consumer Price Index (CPI) is a measure of inflation that reflects changes in the prices paid by urban consumers for a representative basket of goods and services.
DXY Dollar index The US Dollar Index® is a calculation of six currencies weighted against the US dollar: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc. The index is also referred to as USDX.
ECB European Central Bank The European Central Bank defines and implements the monetary policy for the euro area.
EUR  Euro  
Euribor Euro Interbank Offered Rate The rate at which a prime bank is willing to lend funds in euro to another prime bank. The EURIBOR is calculated daily for interbank deposits with a maturity of one week and one to 12 months as the average of the daily offer rates of a representative panel of prime banks.
FOMC Federal Open Market Committee The FOMC sets the short-term objective for open market operations--the purchases and sales of U.S. Treasury and federal agency securities--the Federal Reserve's principal tool for implementing monetary policy.
FRB Federal Reserve Board The Board of Governors is a governmental agency of the Federal Reserve System and composed of seven members who are appointed by the President and confirmed by the Senate. The Board of Governors is responsible for domestic and international economic analysis; with other components of the System, for the conduct of monetary policy; for supervision and regulation of certain banking organizations; for operation of much of the nation's payments system; and for administration of most of the nation's laws that protect consumers in credit transactions.
GBP British pound  
GDP Gross Domestic Product The broadest measure of aggregate economic activity encompassing every measure of the economy; it measures consumption, government spending, investments and net exports. It is often used as a measure of a country's economic health.
HICP Harmonised Index of Consumer Prices The HICP is the measure of prices used by the Governing Council of The European Central Bank to define and assess price stability in the euro area as a whole in quantitative terms. The index of consumer prices calculated and published by Eurostat, the Statistical Office of the European Union, on the basis of a statistical methodology that has been harmonised across all EU Member States.
ISM Institute of Supply Management The Institute of Supply Management tracks data that reflect the economic health of the manufacturing sector—a major source of cyclical variability in the economy. The ISM manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. The Federal Reserve keeps a close watch on such data to help it determine the direction of interest rates.
Intraday Indicative Value A real-time net asset value.
JPY Japanese yen  
LIBOR London Interbank Offered Rate LIBOR is the rate of interest at which banks borrow funds from each other, in marketable size, in the London interbank market.
MXN Mexican peso  
Noon Buying Rate The Noon Buying Rate is the exchange rate of the U.S. Dollar and the applicable foreign currency as determined by the Federal Reserve Bank of New York as of 12:00 PM (EST).
OECD Organisation for Economic Co-Operation and Development The Organisation for Economic Co-operation and Development is an organization 30 member countries which work together to address the economic, social and governance challenges of globalisation as well as to exploit its opportunities.
OFHEA Office of Fair Housing Enterprise Oversight Government regulatory body overseeing Fannie Mae and Freddie Mac
PCE Personal Consumption Expenditures A measure of price changes of goods and services purchased by individuals.
PMI Purchasing Managers Index  A sentiment indicator for manufacturing and of the economy as a whole. Through a survey of purchasing executives across hundreds of industrial companies, the PMI is a composite index based on the seasonally adjusted diffusion indices for five of the indicators with varying weights: New Orders; Production; Employment; Supplier Deliveries; and Inventories. An index reading above 50 percent indicates that economic activity is generally expanding; below 50 percent, that it is generally declining. The index is maintained by the Institute for Supply Management.
PPI Producer Price Index The Producer Price Index (PPI) measures the average change over time in the selling prices received by domestic producers for their output. The prices included in the PPI are from the first commercial transaction for many products and some services.
RBA Reserve Bank of Australia The Reserve Bank of Australia's (RBA) is the central bank of Australia. Its main responsibility is monetary policy. Other major roles are maintaining financial system stability and promoting the safety and efficiency of the payments system.
RRR Reserve Requirement Ratio The percentage of customer deposits and notes that a commercial bank must hold in reserve.
SAAR Seasonally Adjusted Annualized Rate  
SEK Swedish krona  
SNB Swiss National Bank  
SONIA Sterling Overnight Interbank Average Rate  The Sterling Overnight Interbank Average tracks actual Sterling overnight funding rates experienced by market participants.
Spot Price Ask The current price a market maker is quoting to sell you shares.
Spot Price Bid The current price a market maker is quoting to buy your shares.
Tankan Index A quarterly survey of business sentiment based upon surveys sent to Japanese companies.
TIC Treasury International Capital  The Treasury International Capital (TIC) reporting system collects data for the United States on cross-border portfolio investment flows and positions between U.S. residents (including U.S.-based branches of firms headquartered in other countries) and foreign residents (including offshore branches of U.S. firms).
USD U.S. Dollar  
V-Shaped Recovery  A short-lived contraction lasting around two quarters.
ZEW Zentrum für Europäische Wirtschaftsforschung (Centre for European Economic Research) The ZEW is a non-profit economic research institute which carries out economic research, economic counselling and knowledge transfer.

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.

© 2017 Guggenheim Distributors, LLC. All Rights Reserved.