Invesco DB US Dollar Index Bearish Fund company info
UDN
Invesco DB US Dollar Index Bearish Fund
What does Invesco DB US Dollar Index Bearish Fund do?
Invesco DB US Dollar Index Bearish Fund (NYSEARCA:UDN) is focused on providing investors a way to bet against the value of the United States dollar. This exchange-traded fund (ETF) attempts to achieve its objectives by tracking the performance of the US Dollar index, moving inversely to the index's performance. Essentially, when the US dollar decreases in value, the value of UDN is expected to increase, and vice versa. The fund operates under the management of Invesco, a global investment management firm, and endeavors to offer investors a strategic tool for hedging against dollar weakness or speculating on its decline. UDN's activities involve engaging in futures contracts and other derivative instruments linked to the performance of the US dollar relative to a basket of world currencies, aiming to provide an investment avenue for those anticipating a dip in the US dollar's value.
Company Snapshot
Is Invesco DB US Dollar Index Bearish Fund a public or private company?
Ownership
Public
How many people does Invesco DB US Dollar Index Bearish Fund employ?
Employees
5,024
What sector is Invesco DB US Dollar Index Bearish Fund in?
Sector
ETF
Where is the head office for Invesco DB US Dollar Index Bearish Fund?
Head Office
Atlanta, United States
What year was Invesco DB US Dollar Index Bearish Fund founded?
Year Founded
2007
What does Invesco DB US Dollar Index Bearish Fund specialise in?
What are the products and/or services of Invesco DB US Dollar Index Bearish Fund?
Overview of Invesco DB US Dollar Index Bearish Fund offerings
Short Exposure to the U.S. Dollar: UDN is designed to profit from a decline in the relative value of the U.S. dollar compared to a basket of six major world currencies: the euro (EUR), Japanese yen (JPY), British pound (GBP), Swedish krona (SEK), Canadian dollar (CAD), and Swiss franc (CHF).
Uses Short U.S. Dollar Futures Contracts: UDN achieves its objective by using short futures contracts on the U.S. Dollar Index (USDX). When the value of the USDX falls, the fund aims to gain.
Hedged Portfolio: UDN is structured to hedge out some of its exposure to changes in interest rates. This can help to isolate the fund's performance to the movement of foreign exchange rates.
Seeks Capital Appreciation: The primary objective of UDN is to achieve capital appreciation for investors through potential gains if the U.S. dollar weakens relative to the basket of foreign currencies.
Commodity Pool Structure: UDN is structured as a commodity pool, which means it may be subject to different tax treatment compared to traditional ETFs. Investors should consult with a tax advisor regarding the potential tax implications.
Distributes K-1 tax forms: Due to its commodity pool structure, UDN distributes K-1 tax forms to investors annually. K-1 forms report a partnership's income, deductions, and credits for each partner. This can add complexity to tax filing for some investors.