Invesco CurrencyShares Euro Currency Trust

What they do

The Trust was formed December 5, 2005, began trading on the NYSE on December 12, 2005, and moved its primary listing to NYSE Arca on October 30, 2007. It holds euro and, from time to time, issues Baskets in exchange for deposits of euro and distributes euro on redemptions; euro is sold only to pay expenses, on termination, or as required by law. It is a passive vehicle with no officers, directors or employees, does not use derivatives, and seeks to reflect the price in USD of euro plus accrued interest less expenses. The Sponsor is Invesco Specialized Products, LLC; The Bank of New York Mellon is Trustee and JPMorgan Chase Bank, N.A., London Branch is Depository.

Revenue drivers

• Sponsor's fee accrual — The Trust's only ordinary recurring expense is the Sponsor's fee, accruing daily at an annual nominal rate of 0.40% of the euro in the Trust (including unpaid interest, excluding unpaid fees); the Trust incurred $1,649,268 in Sponsor's fees for the year ended December 31, 2025.
• Depository interest on euro deposits — The Trust's primary deposit account at JPMorgan Chase Bank, N.A., London Branch may earn interest, accruing daily and paid monthly; the rate in effect as of December 31, 2025 was an annual nominal rate of 1.10%, and the 10-Q states the rate has generally trended upward over the past year to 1.30%.
• Excess interest distributions to shareholders — When monthly interest deposited exceeds the prior month's Sponsor's fee plus other Trust expenses, the Trustee converts the excess to USD and distributes it pro rata to shareholders; reported monthly distributions were $0.06386 (10/1/2025, NAV $108.47), $0.06452 (11/3/2025, NAV $106.55) and $0.06282 (12/1/2025, NAV $107.13).
• USD/euro exchange-rate exposure — The investment objective is for Shares to reflect the price in USD of euro plus accrued interest, if any, less expenses, so the Trust's net comprehensive income is driven primarily by the euro/USD Closing Spot Rate determined by The WM Company at the London 4:00 PM fixing.

Recent performance

Annual revenue was $5.3M in 2023, $4.7M in 2024 and $5.1M in 2025; annual net income was $4.3M, $4.0M and $3.4M, respectively, and operating cash flow was $3.7M, $4.3M and $3.4M. Diluted EPS was $1.65 (2023), $2.15 (2024) and $0.88 (2025). Recent quarterly revenue was $1.5M (2025-09-30), $1.3M (2025-12-31), $1.3M (2026-03-31) and $1.2M (2026-06-30). At 2026-06-30 total assets were $374.9M, total liabilities $157,002, and cash and equivalents $374.5M. Dividends per share were $0.02 (2022), $1.48 (2023) and $2.21 (2024).

Strategy

The Trust is a passive investment vehicle that does not engage in activities designed to profit from, or ameliorate losses caused by, changes in the price of the euro. It has no officers, directors or employees, and the Sponsor oversees the Trustee and principal service providers while bearing most Trust expenses in exchange for the 0.40% fee. The Trust's stated objective remains for Shares to reflect the price in USD of euro plus accrued interest, if any, less expenses. The Sponsor states it is not aware of known trends, demands, commitments, events or uncertainties reasonably likely to result in material changes to the Trust's liquidity and capital resources needs. The 10-Q states there were no material estimates involving a significant level of estimation uncertainty used in preparing the financial statements.

Risks

• Euro price fluctuation — The value of the Shares relates directly to the value of the euro held by the Trust, and the price of euro has fluctuated widely over the past several years, with the 10-K noting volatility increased in recent months.
• Eurozone membership and sovereign debt — The 10-K cites sovereign debt levels of certain European Union members, potential impacts on eurozone composition, and the risk that further member-state withdrawals could increase volatility, uncertainty and illiquidity and lower regional economic growth.
• Interest-rate and yield differentials — The 10-Q attributes 2026 euro weakness to persistent USD strength and materially higher U.S. interest rates preserving the dollar's yield advantage, even after the ECB raised key policy rates by 25 basis points in June.
• Macro and geopolitical conditions — The Trust's net comprehensive income was impacted by market volatility from global tariff gyrations, U.S. economic uncertainty, Middle East conflict driving energy prices higher, and shifting central-bank policy expectations, which the Trust describes as unusual or infrequent events.

Outlook

The 10-K and 10-Q do not provide discrete earnings guidance, stating that forward-looking statements are made as of the report date and will not be revised or updated. The Trust notes its net comprehensive income depends on whether interest income exceeds the Sponsor's fee and interest expense on currency deposits, and the 10-Q reports the Depository rate at 1.30%, up from 1.10% at December 31, 2025. Management states the Trust has no material cash requirements and is not aware of known trends, demands, commitments, events or uncertainties reasonably likely to materially change its liquidity and capital resources needs. Market risk is limited to USD/euro exchange-rate fluctuations and changes in the Depository's nominal annual interest rate, as the Trust holds no securities and no derivative instruments.