Invesco CurrencyShares Canadian Dollar Trust: Your 2025 Annual Performance Snapshot

Considering an investment in the Canadian Dollar? This summary provides a clear, investor-focused look at the Invesco CurrencyShares Canadian Dollar Trust (ticker: FXC) for the fiscal year ended December 31, 2025. We'll explore how FXC performed, what drives its value, who manages it, and the essential risks you should understand.

Business Overview: What is FXC and How Does It Work?

The Invesco CurrencyShares Canadian Dollar Trust (FXC), established in 2006, offers a straightforward way to invest in the Canadian Dollar (CAD) against the U.S. Dollar (USD) without directly holding foreign currency. Its objective is to track the daily current exchange rate between the CAD and the USD, plus any interest earned on its CAD holdings, minus its operating expenses.

When you buy a share of FXC, you acquire a proportional interest in a pool of Canadian Dollars held by the Trust. This "passive" investment strategy means the Trust does not actively trade currencies or use complex financial instruments like derivatives. Instead, it holds actual Canadian Dollars in a deposit account, ensuring its shares reflect the CAD's value relative to the USD.

Financial Performance & Management Discussion and Analysis (MD&A) Highlights

Management offers this perspective on the Trust's financial condition and results of operations for the fiscal year ended December 31, 2025.

For the fiscal year ended December 31, 2025, FXC delivered these key results:

• Overall Performance: The Canadian Dollar (CAD) appreciated by approximately 2.5% against the U.S. Dollar during 2025. Reflecting this, FXC's Net Asset Value (NAV) per share increased from $75.00 at the beginning of the year to $76.50 by year-end. The Trust's total return for the year, factoring in market price changes and expenses, was approximately 2.0%. This favorable movement in the CAD/USD exchange rate primarily drove this performance.
• Assets Under Management (AUM): The total value of Canadian Dollars the Trust held grew from approximately $90.0 million at the start of 2025 to $95.0 million by December 31, 2025. This increase resulted from both the Canadian Dollar's appreciation and, potentially, net inflows from Authorized Participants creating new shares.
• Operating Costs: The main ongoing cost is a Sponsor's fee paid to Invesco Specialized Products, LLC, calculated daily at an annual rate of 0.40% of the Trust's Canadian Dollar holdings. For 2025, this fee amounted to $326,651. The Sponsor also covers most other administrative expenses, including Trustee fees, listing fees, audit fees, and up to $100,000 annually in legal fees.
• Interest Income vs. Expenses: In 2025, interest earned on the Trust's Canadian Dollar deposits substantially exceeded its operating expenses – a significant positive. The Trust earned approximately $800,000 in interest income, representing an effective annual interest rate of about 0.84% on its average holdings. This strong interest income meant the Trust did not need to sell any Canadian Dollars to cover its costs, thus preserving the value of Canadian Dollars backing each share. Generating interest income that offsets or exceeds expenses is crucial for minimizing tracking error and preserving the underlying asset value.

Financial Health

The Trust's simple structure defines its financial health. Its primary assets consist solely of Canadian Dollars held in a deposit account with the Depository. The Trust does not incur debt, and interest income on its holdings, or if necessary, the sale of a minimal amount of Canadian Dollars, funds its operations. Its liquidity primarily stems from the highly liquid nature of the Canadian Dollar itself and Authorized Participants' ability to create and redeem shares, which generally ensures the market price tracks the Net Asset Value. As of December 31, 2025, the Trust held approximately $95.0 million in Canadian Dollars.

Risk Factors

Investing in FXC involves specific risks that can impact your investment's value:

• Currency Exchange Rate Volatility: Your investment's value directly ties to the Canadian Dollar's performance against the U.S. Dollar. Currency markets are highly volatile, influenced by a wide range of factors, including economic data (inflation, interest rates, GDP), trade balances, geopolitical events, and government policies in both Canada and the U.S. Unfavorable movements in the CAD/USD exchange rate will directly reduce your FXC shares' value.
• Expenses Eroding Value: Although 2025 saw strong interest income, a risk always exists: if interest earned on the Trust's Canadian Dollar holdings is insufficient to cover its operating expenses, the Trust must sell Canadian Dollars to meet these obligations. This would gradually reduce the amount of Canadian Dollars each share represents, potentially leading to a decline in share price even if the CAD's overall value remains stable.
• Tracking Error Risk: While FXC aims to track the CAD/USD current exchange rate, its performance may not perfectly match the underlying currency's movements. This "tracking error" can arise from factors like the Trust's expenses, market liquidity, and the timing of currency conversions.
• Market Price vs. NAV: The market price of FXC shares, which is what you pay or receive when buying or selling on an exchange, can trade at a premium or discount to its Net Asset Value (NAV) per share. Supply and demand dynamics for the shares themselves can influence this difference.
• Counterparty Risk: The Trust relies on its Depository, JPMorgan Chase Bank, N.A., to hold its Canadian Dollar assets. In the unlikely event of the Depository's insolvency or failure, the Trust's assets could be at risk.
• Tax Implications: For U.S. investors, gains or losses from currency investments like FXC may be treated as ordinary income or loss under Section 988 of the Internal Revenue Code, rather than capital gains. Investors should consult with a tax advisor regarding their specific situation.

Future Outlook

As a passively managed trust, the Invesco CurrencyShares Canadian Dollar Trust does not provide traditional forward-looking guidance or strategic plans. Its objective and strategy remain consistent: to track the Canadian Dollar's performance against the U.S. Dollar, less expenses. Therefore, movements in the CAD/USD exchange rate and prevailing interest rates on Canadian Dollar deposits will primarily dictate future performance.

Competitive Position

The Trust operates in a market that includes other exchange-traded products offering exposure to foreign currencies. The Trust's competitive position generally relies on its expense ratio, the liquidity of its shares, and its Sponsor's reputation. Investors seeking Canadian Dollar exposure may also consider direct currency holdings or other financial instruments.

Who Manages the Trust?

• The Sponsor: Invesco Specialized Products, LLC, oversees the Trust's operations and covers many of its administrative costs.
• The Trustee: The Bank of New York Mellon handles the Trust's day-to-day administration, including the crucial task of calculating the Net Asset Value (NAV) per share each business day. The NAV represents the total value of the Trust's Canadian Dollar holdings, minus liabilities, converted to U.S. Dollars.
• The Depository: JPMorgan Chase Bank, N.A., London Branch, securely holds the actual Canadian Dollars. While they do not charge direct fees to the Trust, they profit from the difference between the interest they pay the Trust on deposits and what they can earn on those funds.

Quick Facts & Figures (as of December 31, 2025):

• Shares Outstanding: 1,100,000
• Market Value of Non-Affiliate Shares: Approximately $93.4 million
• Average Daily Trading Volume (2025): Approximately 50,000 shares
• NAV per Share (Year-End 2025): $76.50
• Market Price per Share (Year-End 2025): $76.45

This comprehensive overview provides a clearer picture of the Invesco CurrencyShares Canadian Dollar Trust's operations, its 2025 performance, and key considerations for investors. It offers a direct way to gain exposure to the Canadian Dollar, but like any investment, understanding its specific risks, particularly currency fluctuations and operational costs, is crucial.