Invesco DB US Dollar Index Bearish Fund

Frequently Asked Questions About UDN

What does UDN invest in?

The Invesco DB US Dollar Index Bearish Fund (UDN) is designed to provide investors with exposure to the inverse performance of the U.S. dollar against a basket of key global currencies. Specifically, it aims to track the Deutsche Bank Short USD Currency Portfolio Index – Excess Return, while also incorporating net interest income generated from its holdings, primarily U.S. Treasury securities and money market instruments, after accounting for fund expenses. This Fund offers a streamlined and economical method for investors seeking to benefit from a decline in the U.S. dollar's value relative to six major world currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc. The underlying Index follows a rules-based approach, comprising exclusively "short" U.S. Dollar Index futures contracts, which are actively traded on the ICE futures exchange. These USDX futures are engineered to replicate the financial outcome of holding a short position in the U.S. dollar against the aforementioned basket of international currencies. It is crucial to understand that this Fund may not be appropriate for all investors. Its investment strategy involves speculative trading in inherently volatile futures markets. The frequent and significant price fluctuations characteristic of futures contracts could lead to substantial financial losses. For a comprehensive understanding of the risks involved, investors are strongly advised to consult the "Risk and Other Information" section and the Fund's Prospectus. For information regarding the Fund's qualified notices concerning IRS Section 1446(f) Rule for Publicly Traded Partnerships (PTPs), please visit our dedicated ETF tax center. Additionally, the Form 1065 Schedule K-3 FAQ for Invesco DB Funds (under the Securities Act of 1933) is available on the same platform.

What is the expense ratio of UDN?

Invesco DB US Dollar Index Bearish Fund (UDN) charges an expense ratio of 0.77%. This is the annual fee deducted from fund assets to cover management and operations.

What is UDN's dividend yield?

UDN's trailing-twelve-month yield is 2.92%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of UDN?

Effective duration measures UDN's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. UDN's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of UDN?

UDN's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of UDN?

Yield to maturity (YTM) is the total return you'd earn from UDN if every bond in the portfolio is held to maturity at the current price. UDN's YTM is published on the fund's factsheet on the issuer's website — it differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.