Invesco CurrencyShares Canadian Dollar Trust

What they do

The Trust holds Canadian Dollars and issues or redeems shares in Baskets of 50,000 in exchange for CAD deposits or distributions. It is a passive vehicle with no derivatives, and its only ordinary expense is the Sponsor's fee (0.40% annually of CAD held). The Sponsor, Invesco Specialized Products, LLC, oversees the Trustee (Bank of New York Mellon) and service providers.

Revenue drivers

• Interest on CAD deposits — Interest earned on the primary deposit account at JPMorgan Chase Bank, London Branch; rate was 0.51% as of December 31, 2025. Interest income net of Sponsor's fee drives net income; 2025 revenue was $713,801.
• Share creation/redemption activity — Baskets are exchanged for CAD deposits or distributions; activity affects the amount of CAD held and thus interest income. Quarterly revenue declined from $209,051 (Sep 2025) to $98,817 (Jun 2026), indicating lower average CAD balances.

Recent performance

For the year ended December 31, 2025, the Trust reported revenue of $713,801, net income of $387,150, and diluted EPS of $0.33, down from 2024 revenue of $1.5M and net income of $1.2M. Quarterly revenue has continued to decline: $209,051 (Sep 2025), $120,910 (Dec 2025), $103,924 (Mar 2026), and $98,817 (Jun 2026). As of June 30, 2026, total assets were $75.8M, all in cash and equivalents, with liabilities of $23,970. Distributions per share were $0.37 in 2025, down from $1.53 in 2024.

Strategy

The Trust's stated objective is for shares to reflect the USD price of the Canadian Dollar plus accrued interest, less expenses. It does not engage in any profit-seeking activities; Canadian Dollars are sold only to pay expenses, upon termination, or as required by law. Management mentions no strategic investments or changes; the Trust operates passively with no material cash requirements.

Risks

• Currency price volatility — The value of the Shares is directly tied to the Canadian Dollar/USD exchange rate, which can be volatile and unpredictable, materially affecting performance.
• Interest rate risk — If interest earned on CAD deposits falls below the Sponsor's fee and other expenses, the Trust will incur losses, as the Trustee would withdraw CAD to cover the shortfall.
• Geopolitical and economic conditions — Global events, including trade tensions, geopolitical conflicts, and central bank policies, can affect the Canadian Dollar and the Trust's net income, as seen in recent quarterly volatility.
• Concentration in single currency — The Trust holds only Canadian Dollars, with no diversification; adverse developments in Canada's economy or currency could severely impact the value of Shares.

Outlook

Management notes recent market volatility from geopolitical tensions and policy uncertainty may affect the Canadian Dollar. The Depository interest rate has remained flat at 0.51%, and the Trust will incur net income as long as interest income exceeds the Sponsor's fee. No material trends or uncertainties are expected to change the Trust's liquidity needs.