FXB Fund Description

The CurrencyShares British Pound Sterling Trust delivers exposure to changes in value of the British pound relative to the US dollar.

FXB ETF.com Insight

[As of 11/18/13] FXB is an investor favorite for accessing the British pound. With $55M in assets, it dominates its only direct competitor, GBB. For 40 bps, the fund holds physical BritishFXB is an investor favorite for accessing the British pound pounds in a deposit account—a simple strategy. However, FXB’s deposits are uninsured, leaving investors exposed to the default risk of JPMorgan, the fund’s depository bank. Tax efficiency is another concern—any distributions or capital gains are taxed at ordinary income rates (regardless of holding period). FXB’s liquidity is solid, but investors should still be smart about trading the fund. On most days, it trades well over $2M, at 2 bp spreads, and it gets high marks for block liquidity. Both large and small investors should be able to trade the fund easily. Overall, FXB is a solid choice—its combination of liquidity and coverage earns it our Analyst Pick ribbon.

1 Year

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

FXB (Mkt)
-0.40% 2.96% -1.19% 1.00% -0.16% -4.15% --

FXB (NAV)

6.26% 5.50% -1.17% 1.34% -0.04% -4.10% --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

FXB Top 10 Holdings

FXB 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.

$91.97 M

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

$2.99 M

Average dollar value of shares traded over 60 calendar days.

0.02%

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.

FXB Portfolio Data

0.06%

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

09/01/14

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 FXB

GBB, FXE

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

FXB ETF.com Efficiency Insight

[As of 11/18/13] With $55M in assets, FXB has been the clear fund of choice for investors interested in the pound—a clear sign the fund won’t be going anywhere. Yet investors should be aware the fund’s physical deposits of British pounds are uninsured, leaving shareholders exposed to the credit risk of the depository, JPMorgan. FXB has yet to issue any distributions, but note that gains on sales of shares are always taxed at ordinary income rates.

Total Return

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

FXB (Mkt)
-0.40% 2.96% -1.19% 1.00% -0.16% -4.15% --

FXB (NAV)
6.26% 5.50% -1.17% 1.34% -0.04% -4.10% --

IU British Pound Sterling Index
-0.44% 2.91% -0.56% 2.03% 0.60% 1.82% --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

FXB Portfolio Management

0.40%

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

FXB 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.

--

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.

FXB 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.

FXB ETF.com Tradability Insight

[As of 11/18/13] FXB can be accessed fairly by investors small and large. The fund trades over $2M on most days and average spreads are tight at 2 bps. It trades less than a creation unit (50K shares) per day, but it still gets high marks for block liquidity. The ease of hedging FXB allows market makers to offer the product in size at competitive spreads—a benefit to small and large investors alike.

Average Spread

Premium/Discount

Volume

FXB ETF.com/ Block LiquidityAs of 07/29/2014

5
4
3
2
1

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

FXB Tradability

17,939

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

$2.99 M

Average dollar value of shares traded over 60 calendar days.

8,270

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

$1.38 M

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

0.02%

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.

0.17

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.

8,331

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.

FXB ETF.com Fit Insight

[As of 11/18/13] FXB does an excellent job tracking the British pound, which comes as no surprise given that its shares are backed by physical deposits. The one drawback to FXB is the fund’s annual interest rate (0.06%), which doesn't capture the actual overnight lending rate for the British pound (0.50%). Regardless, FXB still delivers exactly what you’d expect.

FXB Top 10 Holdings

FXB Top 5 Collateral Investments

FXB Performance Statistics

1.00

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

1.00

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.

1.00

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.

1.00

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.

FXB Currency Exposure

FXB Segment Benchmark
100.00% 100.00%

FXB Portfolio Tilts Comparison

FXB 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.

0.50% 0.06%

The annualized current overnight yield of the portfolio.