FXC vs FXE

FXCCInvesco CurrencyShares Canadian Dollar Trust

FXEBInvesco CurrencyShares Euro Trust

In short

FXC The plain-vanilla loonie trade: FXC holds actual Canadian dollars in a London bank account, no futures, no swaps, and has done it that way since 2006. A foreign-currency account you can buy in a brokerage window.

FXE A 2005-vintage grantor trust that parks actual euros in a bank account and lets you buy them like a stock. Shares reflect the dollar price of the euro plus accrued interest, after trust expenses. No forex account, no futures roll.

Stated mandate

FXC The Trust seeks to reflect the U.S.-dollar price of the Canadian Dollar, plus any accrued interest and after Trust expenses. It is intended to provide a direct, cost-effective way to obtain investment exposure similar to holding Canadian Dollars.

FXE The Trust is designed to reflect the U.S.-dollar price of the euro, plus any accrued interest, after deducting Trust expenses and liabilities.

Why people hold it

• FXC Physically backed: real Canadian dollars sit in a JPMorgan Chase London deposit account, no derivatives involved, with the trust's holdings posted every business day.sec.gov
• Trading since 2006 and built for one job: exposure similar to holding Canadian dollars, without opening a separate currency account.
• The cash can earn interest. It accrues daily on the trust's primary deposit account, and the trust distributes monthly.sec.gov
• Fee sits at 0.40% a year, even with the median single-currency fund. Nobody in this corner is undercutting anybody.

• FXE Mechanically plain: the trust holds euro deposits, and shares reflect the U.S.-dollar price of the euro plus accrued interest, after expenses. No futures contracts, no roll schedule to babysit.invesco.com
• Trading is one of its strong suits for a thin corner of the market, and it stands among the better-executed vehicles in the small single-currency group.
• The 0.40% fee matches every CurrencyShares sibling (FXB, FXF, FXY, FXC) and sits right at the group median, so you are not paying up for the euro version.
• Listed since December 2005, which makes it one of the longest-tenured currency products on a US exchange.stockanalysis.com

Worth knowing

• FXC Thinly traded, so what you pay to get in and out can matter more than the 0.40% fee.
• The depository sets the interest rate and can move it to zero or below zero, which would shrink or halt what flows through to shareholders.sec.gov
• One currency, no cushion: the whole ride is the Canadian dollar against the US dollar, and the money sits in deposit accounts at a single bank.sec.gov

• FXE Any income is just what the euro deposits earn after trust expenses, so distributions are irregular and can dry up when euro-area rates sit low.
• One currency, one exposure: everything rides on the euro versus the dollar, with no earnings or coupons underneath to cushion a move.
• It is a grantor trust, not a registered fund, so its structure and tax treatment differ from a standard ETF. The prospectus lays out the details.invesco.com

Full FXC profile⁠

Full FXE profile⁠