Invesco DB US Dollar Index Bullish Fund
For the period ended Dec 31, 2024. Filed Feb 26, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Feb 26, 2025
UUP$29.13+0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2023-12-31; filed 2024-02-23.
0000950170-24-019064
Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-K
Period ended 2024-12-31; filed 2025-02-26.
0000950170-25-027275
Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 74 previous paragraphs and 74 current paragraphs.
63 unchanged; 10 reworded; 1 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 1 previous and 1 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
The U.S. dollar rallied significantly in 2024, leading to strong positive performance for the Fund (+13%). While the U.S. 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 quarters of the year as U.S. 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 rate cut in September. Furthermore, the Bank of Japan surprised the market with a rate hike in August, sending the Japanese Yen higher. In the fourth quarter however, rising geopolitical tensions and President Trump’s victory served as tailwinds; many of President Trump’s campaigned policies were expected to raise inflation risk, potentially leading to slower, if any, Federal Reserve rate cuts in 2025. In addition, tariffs generally weigh on foreign currencies, further boosting the U.S. dollar.
Removed paragraphs (1)
Previous report
In 2022, the U.S. dollar, and hence the Fund, posted strong positive performance in the first three quarters of the year but retreated sharply in the fourth quarter. Heightened geopolitical tensions in the first quarter and growing recession fears in the second and third quarters boosted demand for haven assets like the U.S. dollar, pushing it past 20-year highs in September, while uncertainty over Europe’s macroeconomic outlook in the first quarter, given its geographical proximity and strong reliance on Russian commodities, and then the region’s deepening energy crisis in the second and third quarters, weighed on its European counterparts. The U.S. dollar was also supported by other central banks relatively dovish policies, notably the Bank of Japan, in comparison to the Federal Reserve, as higher interest rates tend to boost demand for a currency. Finally, falling crude oil prices weighed on the Canadian dollar given the country is a major exporter of the commodity. However, the U.S. dollar plunged to end the year as expectations for a moderation in Federal Reserve rate hikes grew, following a larger-than-expected drop in U.S. inflation.
Reworded paragraphs (10)
Previous wording
On any business day, an Authorized Participant may place an order with the Transfer Agent to redeem one or more blocks of 50,000 Shares (“Creation Units”). Redemption orders must be placed by 1:00 p.m., Eastern Time. The day on which the Managing Owner receives a valid redemption order is the redemption order date. The day on which a redemption order is settled is the redemption order settlement date. As provided below, the redemption order settlement date may occur up to two business days after the redemption order date. Redemption orders are irrevocable. The redemption procedures allow Authorized Participants to redeem Creation Units. Individual Shareholders may not redeem directly from the Fund. Instead, individual Shareholders may only redeem Shares in integral multiples of 50,000 and only through an Authorized Participant.
Current wording
On any business day, an Authorized Participant may place an order with the Transfer Agent to redeem one or more blocks of 50,000 Shares (“Creation Units”). Redemption orders must be placed by 1:00 p.m., Eastern Time. The day on which the Managing Owner receives a valid redemption order is the redemption order date. The day on which a redemption order is settled is the redemption order settlement date. As provided below, the redemption order settlement date may occur up to one business day after the redemption order date. Redemption orders are irrevocable. The redemption procedures allow Authorized Participants to redeem Creation Units. Individual Shareholders may not redeem directly from the Fund. Instead, individual Shareholders may only redeem Shares in integral multiples of 50,000 and only through an Authorized Participant.
Previous wording
Unless otherwise agreed to by the Managing Owner and the Authorized Participant as provided in the next sentence, by placing a redemption order, an Authorized Participant agrees to deliver the Creation Units to be redeemed through DTC’s book-entry system to the Fund no later than the redemption order settlement date as of 2:45 p.m., Eastern Time, on the business day immediately following the redemption order date. Upon submission of a redemption order, the Authorized Participant may request the Managing Owner to agree to a redemption order settlement date up to two business days after the redemption order date. 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.
Current wording
Unless otherwise agreed to by the Managing Owner and the Authorized Participant as provided in the next sentence, by placing a redemption order, an Authorized Participant agrees to deliver the Creation Units to be redeemed through DTC’s book-entry system to the Fund no later than the redemption order settlement date as of 2:45 p.m., Eastern Time, on the business day immediately following the redemption order date. Upon submission of a redemption order, the Authorized Participant may request the Managing Owner to agree to a redemption order settlement date up to one business day after the redemption order date. 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.
Previous wording
As of the date of this Report, each of ABN AMRO Clearing Chicago LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp., BofA Securities, Inc., Cantor Fitzgerald & Co., Citadel Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Goldman Sachs Execution & Clearing LP, Interactive Brokers LLC, Jefferies LLC, JP Morgan Securities Inc., Merrill Lynch Professional Clearing Corp., Morgan Stanley & Co. LLC, Nomura Securities International Inc., RBC Capital Markets LLC, UBS Securities LLC, Virtu Americas LLC and Virtu Financial Capital Markets LLC has executed a Participant Agreement and are the only Authorized Participants.
Current wording
As of the date of this Report, each of ABN AMRO Clearing Chicago LLC, Bank of America Securities, BMO Capital Markets Corp., BNP Paribas Securities Corp., BofA Securities, Inc., Cantor Fitzgerald & Co., Citadel Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Goldman Sachs Execution & Clearing LP, Interactive Brokers LLC, Jane Street Capital LLC, Jefferies LLC, JP Morgan Securities Inc., Morgan Stanley & Co. LLC, Nomura Securities International Inc., RBC Capital Markets LLC, UBS Securities LLC, Virtu Americas LLC and Virtu Financial Capital Markets LLC has executed a Participant Agreement and are the only Authorized Participants.
Previous wording
Net cash flow provided by (used in) operating activities was $1,260.7 million and $(847.6) million for the years ended December 31, 2023 and 2022, 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 only. 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.
Current wording
Net cash flow provided by (used in) operating activities was $22.1 million and $1,260.7 million for the years ended December 31, 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 only. 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.
Previous wording
During the year ended December 31, 2023, $1,192.3 million was paid to purchase United States Treasury Obligations and $1,585.0 million was received from sales and maturing United States Treasury Obligations. During the year ended December 31, 2022, $1,984.8 million was paid to purchase United States Treasury Obligations and $1,422.0 million was received from sales and maturing United States Treasury Obligations. $2,320.5 million was received from sales of affiliated investments and $1,448.8 million was paid to purchase affiliated investments during the year ended December 31, 2023. $3,509.5 million was received from sales of affiliated investments and $3,152.7 million was paid to purchase affiliated investments during the year ended December 31, 2022.
Current wording
During the year ended December 31, 2024, $341.4 million was paid to purchase United States Treasury Obligations and $497.9 million was received from sales and maturing United States Treasury Obligations. During the year ended December 31, 2023, $1,192.3 million was paid to purchase United States Treasury Obligations and $1,585.0 million was received from sales and maturing United States Treasury Obligations. $803.0 million was received from sales of affiliated investments and $970.6 million was paid to purchase affiliated investments during the year ended December 31, 2024. $2,320.5 million was received from sales of affiliated investments and $1,448.8 million was paid to purchase affiliated investments during the year ended December 31, 2023.
Previous wording
The Fund’s net cash flow provided by (used in) financing activities was $(1,265.3) million and $853.2 million during the years ended December 31, 2023 and 2022, respectively. This included $1,104.0 million and $2,623.7 million from the sale of Shares to Authorized Participants and $2,340.4 million and $1,754.3 million from Shares redeemed by Authorized Participants during the years ended December 31, 2023 and 2022, respectively. During the years ended December 31, 2023 and 2022, distributions paid to Shareholders were $28.9 million and $16.2 million, respectively.
Current wording
The Fund’s net cash flow provided by (used in) financing activities was $(22.6) million and $(1,265.3) million during the years ended December 31, 2024 and 2023, respectively. This included $908.9 million and $1,104.0 million from the sale of Shares to Authorized Participants and $912.8 million and $2,340.4 million from Shares redeemed by Authorized Participants during the years ended December 31, 2024 and 2023, respectively. During the years ended December 31, 2024 and 2023, distributions paid to Shareholders were $18.8 million and $28.9 million, respectively.
Previous wording
For the year ended December 31, 2022, the NYSE Arca market value of each Share increased from $25.63 per Share to $27.81 per Share. The Share price low and high for the year ended December 31, 2022 and related change from the Share price on December 31, 2021 was as follows: Shares traded at a low of $25.42 per Share (-0.82%) on January 13, 2022, and a high of $30.70 per Share (+19.78%) on September 27, 2022. On December 23, 2022, the Fund paid a distribution of $0.24660 for each General Share and Share to holders of record as of December 20, 2022. Therefore, the total return for the Fund on a market value basis was +9.46%.
Current wording
For the year ended December 31, 2024, the NYSE Arca market value of each Share increased from $27.09 per Share to $29.42 per Share. The Share price low and high for the year ended December 31, 2024 and related change from the Share price on December 31, 2023 was as follows: Shares traded at a low of $27.33 per Share (+0.89%) on January 2, 2024, and a high of $30.67 per Share (+13.22%) on December 19, 2024. On December 27, 2024, the Fund paid a distribution of $1.31709 for each General Share and Share to holders of record as of December 23, 2024. Therefore, the total return for the Fund on a market value basis was +13.48%.
Previous wording
For the year ended December 31, 2022, the NAV of each Share increased from $25.62 per Share to $27.81 per Share. Rising currency futures contract prices for long DX Contracts during the year ended December 31, 2022 contributed to an overall 8.68% increase in the level of the Index and a 10.91% increase in the level of the Long Index-TRTM. On December 23, 2022, the Fund paid a distribution of $0.24660 for each General Share and Share to holders of record as of December 20, 2022. Therefore, the total return for the Fund on a NAV basis was +9.50%.
Current wording
For the year ended December 31, 2024, the NAV of each Share increased from $27.08 per Share to $29.42 per Share. Rising currency futures contract prices for long DX Contracts during the year ended December 31, 2024 contributed to an overall 8.64% increase in the level of the Index and a 14.34% increase in the level of the Long Index-TRTM. On December 27, 2024, the Fund paid a distribution of $1.31709 for each General Share and Share to holders of record as of December 23, 2024. Therefore, the total return for the Fund on a NAV basis was 13.53%.
Previous wording
Net income (loss) for the year ended December 31, 2022, was $81.3 million, resulting from $29.0 million of income, net realized gain (loss) of $66.9 million, net change in unrealized gain (loss) of $(3.3) million and net operating expenses of $11.3 million.
Current wording
Net income (loss) for the year ended December 31, 2024, was $44.5 million, resulting from $19.3 million of income, net realized gain (loss) of $16.2 million, net change in unrealized gain (loss) of $11.7 million and net operating expenses of $2.8 million.
Previous wording
For the year ended December 31, 2023, the NAV of each Share decreased from $27.81 per Share to $27.09 per Share. Falling currency futures contract prices for long DX Contracts during the year ended December 31, 2023 contributed to an overall 0.74% decrease in the level of the Index and a 4.50% increase in the level of the Long Index-TRTM. On December 22, 2023, the Fund paid a distribution of $1.74553 for each General Share and Share to holders of record as of December 19, 2023. Therefore, the total return for the Fund on a NAV basis was +3.63%.
Current wording
For the year ended December 31, 2023, the NAV of each Share decreased from $27.81 per Share to $27.08 per Share. Falling currency futures contract prices for long DX Contracts during the year ended December 31, 2023 contributed to an overall 0.74% decrease in the level of the Index and a 4.50% increase in the level of the Long Index-TRTM. On December 22, 2023, the Fund paid a distribution of $1.74553 for each General Share and Share to holders of record as of December 19, 2023. Therefore, the total return for the Fund on a NAV basis was +3.59%.