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The CurrencyShares products are intended to provide institutional and retail investors with a simple, cost-effective means of gaining investment benefits similar to those of holding the foreign currency indicated in each Trusts name. The shares are:
Investors will be able to access the currency market through a traditional brokerage account. When admitted to trading, shares of each CurrencyShares Trust are bought and sold on the NYSE Arca like any other exchange-listed security, except that they can regularly be traded until 4:15 p.m. ET instead of 4:00 p.m. ET.
The foreign currency deposited with each Trust is held at a depository (JPMorgan Chase Bank, N.A., London Branch).
Because shares of each Trust will be traded as securities, transaction costs will be substantially reduced.
Because shares of each CurrencyShares Trust are traded on the NYSE Arca, the shares may provide investors with an efficient means of implementing investment tactics and strategies that involve foreign currencies. NYSE Arca-listed securities are eligible for margin accounts. Accordingly, investors are able to purchase and hold shares with borrowed money to the extent permitted by law.
The liquidity of the shares of each CurrencySharesTrust comes not only from the secondary trading on the NYSE Arca, but also from the creation and redemption features. Shares of each Trust can be created and redeemed in baskets of 50,000 shares by Authorized Participants, which creates liquidity.
The assets of each Trust back the shares, and each Trust does not hold or employ any derivative securities.
The CurrencyShares products are listed on the NYSE Arca and trade the same way ordinary stock does.
It is possible to buy and sell shares of each CurrencyShares Trust continuously throughout the trading day on the NYSE Arca at prices established by the market. Additionally, it is possible to place market, limit and stop loss order for the shares of each Trust.
CurrencyShares as an Asset Class
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. Other information on this web site about the CurrencyShares Trusts is for informational purposes only and is not intended to be a complete discussion of all material information you should know about the CurrencyShares Trusts. Further, information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any CurrencyShares Trust and is not intended to be investment, tax, financial or legal advice.
The information contained on this web site regarding the CurrencyShares Trusts is directed at, and is intended for distribution to and for use by, U.S. persons only. The information is not intended for distribution to or use by any person in any other jurisdiction.
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.
This information must be accompanied by a current CurrencyShares® Trust prospectus. Please read the prospectus carefully before investing. The CurrencyShares Trusts are not investment companies registered under the Investment Company Act of 1940.
The CurrencyShares Trusts are distributed by Guggenheim Distributors, LLC. Guggenheim Investments represents the investment management businesses of Guggenheim Partners, LLC ("GP"), 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 Distributors, LL C, is affiliated with GP, SI and GSP.
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