INVESCO DB US DOLLAR INDEX BEARISH FUND
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 7, 2025
UDN$17.77-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0000950170-25-067184
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0000950170-25-105207
Item 2. 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 91 previous paragraphs and 98 current paragraphs.
70 unchanged; 15 reworded; 13 added; 4 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 2 previous and 2 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 (13)
Current report
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 1, 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%.
Current report
The U.S. 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.
Current report
For the three months ended June 30, 2024 the NYSE Arca market value of each Share decreased from $17.99 per Share to $17.90 per Share. The Share price low and high for the three months ended June 30, 2024 and related change from the Share price on March 31, 2024 was as follows: Shares traded at a low of $17.67 per Share (-1.75%) on April 16, 2024, and a high of $18.17 per Share (+1.03%) on June 3, 2024. The total return for the Fund on a market value basis was -0.50%.
Current report
While not following a smooth path, the U.S. dollar moved higher in the second quarter of 2024, leading to losses for the Fund. The key driver was the Federal Reserve’s more hawkish stance amid persistent U.S. inflation. While the markets had expected for the central bank to start cutting rates imminently, those hopes were repeatedly dashed through the quarter. In comparison, many global economies, including Switzerland, Sweden, Canada, and the European Central Bank (ECB), had kicked off their easing (i.e., lowering interest rates) cycles. Higher interest rates generally make a country’s currency more attractive to hold.
Current report
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.
Current report
FOR THE SIX MONTHS ENDED JUNE 30, 2025 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2024
Current report
Fund Share Price Performance
Current report
The U.S. 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. dollar. Finally, the Federal Reserve’s dovish stance, maintaining 50 basis points of expected interest rate cuts, also eroded yield support for the U.S. dollar.
Current report
Fund Share Net Asset Performance
Current report
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 a 11.00% increase in the level of the Index and to a 13.39% increase in the level of the Short Index–TRTM. The total return for the Fund on a NAV basis was +12.97%.
Current report
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.
Current report
For the six months ended June 30, 2024, the NAV of each Share decreased from $18.42 per Share to $17.90 per Share. Falling currency futures contracts prices for short DX Contracts during the six months ended June 30, 2024 contributed to a 5.00% decrease in the level of the Index and to a 2.43% decrease in the level of the Short Index–TRTM. The total return for the Fund on a NAV basis was -2.82%.
Current report
Net income (loss) for the six months ended June 30, 2024 was $(1.8) million, primarily resulting from $1.6 million of income, net realized gain (loss) of $(1.7) million, net change in unrealized gain (loss) of $(1.4) million and net operating expenses of $0.2 million.
Removed paragraphs (4)
Previous report
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.
Previous report
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.
Previous report
The U.S. 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. dollar. 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. dollar; 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. dollar). 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.
Previous report
Net income (loss) for the three months ended March 31, 2024 was $(1.5) million, primarily resulting from $0.9 million of income, net realized gain (loss) of $(0.3) million, net change in unrealized gain (loss) of $(2.0) million and net operating expenses of $0.1 million.
Reworded paragraphs (15)
Previous wording
The Fund may invest directly in United States Treasury Obligations. The Fund may also gain exposure to United States Treasury Obligations through investments in exchange-traded funds (“ETFs”) (affiliated or otherwise) that track indexes that measure the performance of United States Treasury Obligations with a maximum remaining maturity of up to 12 months (“T-Bill ETFs”). The Fund holds as collateral United States Treasury Obligations, money market mutual funds and T-Bill ETFs (affiliated or otherwise), if any, for margin and/or cash management purposes. 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
The Fund may invest directly in United States Treasury Obligations. The Fund may also gain exposure to United States Treasury Obligations through investments in exchange-traded funds (“ETFs”) (affiliated or otherwise) that track indexes that measure the performance of United States Treasury Obligations with a maximum remaining maturity of up to 12 months (“T-Bill ETFs”). The Fund may hold as collateral United States Treasury Obligations, money market mutual funds and T-Bill ETFs (affiliated or otherwise), if any, for margin and/or cash management purposes. 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
The Fund does not have any material cash requirements as of the end of the latest fiscal period. The Fund is unaware of any
Current wording
The Fund does not have any material cash requirements as of the end of the latest fiscal period. The Fund is unaware of any known material trends, favorable or unfavorable, in the Fund’s capital resources.
Previous wording
Net cash flow provided by (used in) operating activities was $(15.8) million and $1.8 million for the three months ended March 31, 2025 and 2024, 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. The Fund invests in United States Treasury Obligations, money market mutual funds, T-Bill ETFs (affiliated or otherwise) and cash, if any, for margin and/or cash management purposes. 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 $(87.0) million and $10.8 million for the six months ended June 30, 2025 and 2024, 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. The Fund invests in United States Treasury Obligations, money market mutual funds, T-Bill ETFs (affiliated or otherwise) and cash, if any, for margin and/or cash management purposes. 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 three months ended March 31, 2025, $0 was paid to purchase United States Treasury Obligations and $5.0 million was received from sales and maturing United States Treasury Obligations. During the three months ended March 31, 2024, $4.9 million was paid to purchase United States Treasury Obligations and $5.0 million was received from sales and maturing United States Treasury Obligations. $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. $8.3 million was received from sales of affiliated investments and $4.7 million was paid to purchase affiliated investments during the three months ended March 31, 2024. During the three months ended
Current wording
During the six months ended June 30, 2025, there were no purchases of United States Treasury Obligations and $15.0 million was received from sales and maturing United States Treasury Obligations. During the six months ended June 30, 2024, $29.2 million was paid to purchase United States Treasury Obligations and $30.0 million was received from sales and maturing United States Treasury Obligations. $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. $23.9 million was received from sales of affiliated investments and $11.3 million was paid to purchase affiliated investments during the six months ended June 30, 2024. During the six months ended June 30, 2025, net deposits to/from the Commodity Broker was $10.4 million. There were no net deposits to/from the Commodity Broker during the six months ended June 30, 2024.
Previous wording
The Fund’s net cash flow provided by (used in) financing activities was $15.8 million and $(1.8) million during the three months ended March 31, 2025 and 2024, respectively. This included $20.9 million and $0.9 million from Shares purchased by Authorized Participants and $5.0 million and $2.7 million from Shares redeemed by Authorized Participants during the three months ended March 31, 2025 and 2024, respectively. No distributions were paid to Shareholders during the three months ended March 31, 2025 and 2024, respectively.
Current wording
The Fund’s net cash flow provided by (used in) financing activities was $87.0 million and $(10.8) million during the six months ended June 30, 2025 and 2024, respectively. This included $93.0 million and $2.7 million from Shares purchased by Authorized Participants and $5.9 million and $13.5 million from Shares redeemed by Authorized Participants during the six months ended June 30, 2025 and 2024, respectively. No distributions were paid to Shareholders during the six months ended June 30, 2025 and 2024, respectively.
Previous wording
FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024
Current wording
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024
Previous wording
COMPARISON OF MARKET, NAV AND DEUTSCHE BANK SHORT USD CURRENCY PORTFOLIO INDEX EXCESS RETURNTM FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024
Current wording
COMPARISON OF MARKET, NAV AND DEUTSCHE BANK SHORT USD CURRENCY PORTFOLIO INDEX EXCESS RETURNTM FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024
Previous wording
This Report covers the three months ended March 31, 2025 and 2024. Past performance of the Fund is not necessarily indicative of future performance.
Current wording
This Report covers the three and six months ended June 30, 2025 and 2024. Past performance of the Fund is not necessarily indicative of future performance.
Previous wording
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, 2025 and 2024” below provides an overview of the changes in the closing levels of the Short Index–TRTM 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.
Current wording
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, 2025 and 2024” below provides an overview of the changes in the closing levels of the Short Index–TRTM 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.
Previous wording
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–TRTM. The total return for the Fund on a NAV basis was +4.78%.
Current wording
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 a 8.04% increase in the level of the Short Index–TRTM. The total return for the Fund on a NAV basis was +7.82%.
Previous wording
For the three months ended March 31, 2024, the NAV of each Share decreased from $18.42 per Share to $17.98 per Share. Falling currency futures contracts prices for short DX Contracts during the three months ended March 31, 2024 contributed to a 3.45% decrease in the level of the Index and to a 2.17% decrease in the level of the Short Index–TRTM. The total return for the Fund on a NAV basis was -2.39%.
Current wording
For the three months ended June 30, 2024, the NAV of each Share decreased from $17.98 per Share to $17.90 per Share. Falling currency futures contracts prices for short DX Contracts during the three months ended June 30, 2024 contributed to a 1.60% decrease in the level of the Index and to a 0.27% decrease in the level of the Short Index–TRTM. The total return for the Fund on a NAV basis was -0.45%.
Previous wording
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.
Current wording
Net income (loss) for the three months ended June 30, 2024 was $(0.3) million, primarily resulting from $0.7 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.
Previous wording
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. The total return for the Fund on a market value basis was +5.03%.
Current wording
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%.
Previous wording
For the three months ended March 31, 2024 the NYSE Arca market value of each Share decreased from $18.43 per Share to $17.98 per Share. The Share price low and high for the three months ended March 31, 2024 and related change from the Share price on December 31, 2023 was as follows: Shares traded at a low of $17.87 per Share (-3.01%) on February 13, 2024, and a high of $18.28 per Share (-0.81%) on January 8, 2024. The total return for the Fund on a market value basis was -2.39%.
Current wording
For six months ended June 30, 2024, the NYSE Arca market value of each Share decreased from $18.43 per Share to $17.90 per Share. The Share price low and high for the six months ended June 30, 2024 and related change from the Share price on December 31, 2023 was as follows: Shares traded at a low of $17.67 per Share (-4.10%) on April 16, 2024, and a high of $18.28 per Share (-0.81%) on January 8, 2024. The total return for the Fund on a market value basis was -2.88%.
Previous wording
The U.S. dollar performed positively in the first quarter of 2024, leading to losses for the Fund. While the 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 months of 2024 and inflation proved stickier than expected, forcing the market to delay easing expectations. A resilient U.S. economy also provided support.
Current wording
The U.S. dollar performed positively in the first half of 2024, leading to losses for the Fund. While the dollar had fallen to end 2023 on expectations for imminent rate cuts, the Federal Reserve stuck to its higher-for-longer rhetoric as U.S. inflation proved more persistent than expected, forcing the market to repeatedly delay easing expectations. In comparison, many global economies including Switzerland, Sweden, Canada, and the European Central Bank (ECB) had kicked off their easing (i.e., lowering interest rates) cycles; higher interest rates tend to make holding the currency more attractive. A resilient U.S. economy and heightened geopolitical tensions also provided some support.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
known material trends, favorable or unfavorable, in the Fund’s capital resources.
Previous report — wording carried elsewhere
March 31, 2025, net deposits to/from the Commodity Broker was $2.6 million. There were no net deposits to/from the Commodity Broker during the three months ended March 31, 2024.