FXA Fund Description

The CurrencyShares Australian Dollar Trust tracks the changes in value of the Australian dollar relative to the US dollar.

FXA ETF.com Insight

[As of 11/18/13] FXA offers direct exposure to the Australian dollar by holding physical dollars in a deposit account at JPMorgan. The fund does a great job of providing exposure to theFXA offers direct exposure to the Australian dollar Aussie dollar and its corresponding interest rate through its simple structure. However, unlike a retail checking account in the US, FXA’s Aussie dollar deposits are uninsured. As a result, investors are exposed to the default risk of JPMorgan, the fund’s depository bank. Tax efficiency is another concern—any distributions or sales of FXA shares are taxed at ordinary income rates, regardless of holding period. Although the fund is pricey within the context of vanilla equity ETFs, its 40 bp fee is right in line with its peers. Liquidity is a high point for the fund—it trades over $9M on most days, with 3 bp spreads. FXA’s liquidity and simplicity make it a great option.

1 Year

Performance [as of 11/18/13] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years

FXA (Mkt)
-2.97% 2.49% -8.27% -7.57% 1.26% 5.31% --

FXA (NAV)

-2.07% -8.95% -7.93% -7.01% 1.37% 5.36% --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

FXA Top 10 Holdings

FXA Summary Data

Guggenheim

A company that produces and manages ETFs.

06/21/06

The first date of a fund's operations, as documented by the issuer.

Grantor Trust

The organizational structure of the fund or ETN.

0.40%

The net total annual fee a fund holder pays to the issuer.

$292.47 M

The market value of total assets that a fund has accumulated and now manages on behalf of investors.

$5.96 M

Average dollar value of shares traded over 60 calendar days.

0.03%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 60 days, as a percent.

FXA Portfolio Data

2.03%

The fund’s trailing twelve month yield, displayed as a percentage.

08/01/14

The upcoming date on which the fund trades without its upcoming dividend

In Specie

Discloses the strategy behind how the fund gains exposure to the underlying currency (In Specie or Derivative).

Related ETFs to FXA

FXC

ETFs from within the same segment or closely related segments with similar investment objectives or market exposures.

FXA ETF.com Efficiency Insight

[As of 11/18/13] Although FXA holds physical Australian dollars in a deposit account, there’s no deposit insurance for the fund. As a result, FXA has some risk linked to the credit-worthiness of its depository—JPMorgan—although current CDS rates suggest this risk is low. Tax inefficiency is also a concern, as the IRS taxes distributions and sales of shares as ordinary income. Still, FXA charges a low fee—40 bps—and has a beefy $400M in AUM.

Total Return

Performance [as of 11/18/13] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years

FXA (Mkt)
-2.97% 2.49% -8.27% -7.57% 1.26% 5.31% --

FXA (NAV)
-2.07% -8.95% -7.93% -7.01% 1.37% 5.36% --

IU Australian Dollar Index
-2.63% 3.16% -7.97% -7.06% 0.94% 10.37% --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

FXA Portfolio Management

0.40%

The net total annual fee a fund holder pays to the issuer.

FXA Tax exposures

39.60% / 39.60%

The maximum long-term and short-term U.S. tax rates applicable to a realized capital gain.

--

The average annualized short–term capital gains distributions from the fund over a 3 year period, displayed as a percentage.

--

The average annualized long–term capital gains distributions from the fund over a 3 year period, displayed as a percentage.

2.57%

The average annualized ordinary income distributions from the fund over a 3 year period, displayed as a percentage.

No

ETFs that are structured as commodities pools and classified as limited partnerships by the IRS will issue K-1 forms to holders.

FXA Fund Structure

Grantor Trust

The organizational structure of the fund or ETN.

In Specie

Discloses the strategy behind how the fund gains exposure to the underlying currency (In Specie or Derivative).

No

An indicator of whether the fund uses over-the–counter derivatives such as swaps or forwards to achieve its objectives.

N/A

The institution responsible for providing the return of the stated index or holding the deposits of physical currrency, whose credit is the sole backing of the product.

Low

The risk of default by the ETN counterparty.

Low

The likelihood that an issuer will shut down a fund for business or regulatory reasons.

None

The frequency of an issuer's disclosure of all fund holdings.

N/A

The multiple of the underlying index which the fund aims to deliver. For funds that reset, the leverage factor holds true only for the reset period, often just 1 day.

N/A

The time period at which the fund “trues up” its leverage factor. For funds that reset, the reset period–often just 1 day–is the length of time over which the fund delivers its leverage factor.

FXA ETF.com Tradability Insight

[As of 11/18/13] FXA is one of the most liquid funds in the currency ETF space. It has a median daily dollar volume of roughly $9M—a sign of constant and significant liquidity. Investors will find FXA’s spread tight at 3 cents, while its high block liquidity score is further assurance that those wishing to trade in size won’t have to pay up when seeking the aid of a liquidity provider.

Average Spread

Premium/Discount

Volume

FXA ETF.com/ Block LiquidityAs of 07/25/2014

5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of FXA. FXA is rated a 5 out of 5.

FXA Tradability

63,719

The average number of shares traded during a 60 day period.

$5.96 M

Average dollar value of shares traded over 60 calendar days.

40,929

Median number of shares traded over the past 45 trading days.

$3.87 M

Median dollar value of shares traded over the past 45 trading days.

0.03%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 60 days, as a percent.

$0.03

The difference between the highest and lowest posted prices for an ETF, averaged over the past 60 days, in dollars.

--

The middle value in the ranked set of all premium/discount values over a 12-month period.

-- / --

The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a 12-month period.

None

This flags whether there is currently a systemic issue that has restricted the ability to create or redeem shares of the fund. This may be imposed by the fund's issuer, or by external circumstances.

100.00%

The percent of time that the underlying securities of an ETF are open to trading while US exchanges are open.

50,000

The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund.

0.89

The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots.

49,361

The total number of net outstanding options contracts for an ETF.

N/A

Indicates whether or not there's a futures contract traded on the fund's underlying index.

--

The total market value of the assets that an ETF holds less fund expenses.

5

An estimate of liquidity for the underlying baskets of securities, scaled 1 to 5.

FXA ETF.com Fit Insight

[As of 11/18/13] FXA does an excellent job of providing exposure to the Australian dollar for the very reason that its shares are backed by physical currency in a deposit account. Like our benchmark, FXA earns interest on its deposits. Although the fund fails to perfectly capture the annualized overnight lending rate for the Australian dollar (2.75%), its current rate of 2.03% doesn’t trail too far behind. The fund’s beta of 1.01 indicates that its risks are right in line with our segment benchmark.

FXA Top 10 Holdings

FXA Top 5 Collateral Investments

FXA Performance Statistics

1.00

The degree to which the fund and its segment benchmark move up and down in unison.

1.01

The sensitivity of the returns of the fund to the movement of the ETF.com segment benchmark. Beta of 1.0 means magnitude of fund returns equals that of IU benchmark returns.

1.02

The comparison of a fund's return to our benchmark's for days when the benchmark is up. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

1.01

The comparison of a fund's return to our benchmark's for days when the benchmark is down. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

FXA Currency Exposure

FXA Segment Benchmark
100.00% 100.00%

FXA Portfolio Tilts Comparison

FXA Segment Benchmark
0.0 0.0

Price sensitivity in percentage to a 100 basis point parallel shift (up or down) in interest rates.

0.0 --

The average remaining days until maturity for all currency contracts in the portfolio.

2.50% 2.03%

The annualized current overnight yield of the portfolio.