Invesco DB US Dollar Index Bullish Fund

What they do

The Fund establishes long positions in DX futures contracts linked to the ICE U.S. Dollar Index, which measures the dollar against six currencies: Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona, and Swiss Franc. It holds U.S. Treasury Obligations, money market mutual funds, and T-Bill ETFs as collateral for margin and cash management. The Fund's performance is driven primarily by its DX Contract trading strategy, with interest and dividend income intended to cover expenses. Shares trade on NYSE Arca under the symbol UUP and are issued/redeemed in Creation Units only through Authorized Participants.

Revenue drivers

• DX Contracts (futures positions) — Long futures positions on the ICE U.S. Dollar Index generate gains or losses based on dollar appreciation; net income was -$22.1M in 2025, swung from $44.5M in 2024.
• Treasury Income — Interest income from U.S. Treasury Obligations held as collateral; contributes to offsetting fund expenses.
• Money Market Income — Dividends from money market mutual funds (affiliated or otherwise) held for margin/cash management; small but recurring income stream.
• T-Bill ETF Income — Dividends or capital gains distributions from T-Bill ETFs (affiliated or otherwise) that track short-term U.S. Treasury indexes; income helps cover fund expenses.

Recent performance

For fiscal year 2025, the Fund reported a net loss of $22.1 million, down from net income of $44.5 million in 2024. Operating cash flow turned positive at $176.8 million in 2025, versus $22.1 million in 2024. As of June 30, 2026, total assets were $447.7 million, shareholder equity was $446.1 million, and cash equivalents were zero. The Fund's one-day 99% VaR was $3.1 million (0.30% of net assets) for the six months ended June 30, 2026, with 26 VaR exceedances. Net assets grew to $446.1 million at June 30, 2026 from $230.1 million at December 31, 2025.

Strategy

The Fund's stated strategy is to track the Index by maintaining long positions in DX Contracts, rolling them as they expire in March, June, September, and December. The Managing Owner may substitute alternative instruments (e.g., different months, similar futures, forwards, swaps) if DX futures become impracticable or inefficient. The Fund holds short-term U.S. Treasury instruments and money market funds as collateral, not for trading. There have been no material changes in strategy or critical accounting estimates as of the latest 10-Q.

Risks

• Market risk – currency movements — The Fund is exposed to frequent changes in the fair value of DX futures; a decline in the U.S. dollar against the index currencies would cause losses.
• Tracking error — The Fund's performance may not perfectly match the Index due to timing, fees, and the Managing Owner's discretion in substituting instruments.
• Concentration risk — The Fund is a single-commodity vehicle; its fortunes depend entirely on U.S. dollar strength, with no diversification across other asset classes.
• Liquidity/derivative risk — Thin trading in DX futures or inefficiencies could force the Fund into alternative instruments that may not correlate closely with the Index.

Outlook

Management provides no specific forward guidance beyond stating that the Fund will continue to track the Index. The latest 10-Q notes no material estimation uncertainties. Market risk disclosures emphasize that actual losses could exceed VaR estimates. The Fund's future performance depends on U.S. dollar movements relative to the six index currencies.