FXF: When Holding CHF Makes Sense

Node Analytica Research356 FollowersFollow5ShareSavePlay(7min)CommentsSummaryInvesco CurrencyShares Swiss Franc Trust offers direct CHF exposure, tracking CHF/USD with minimal tracking error and a 0.40% expense ratio.FXF is best held as a portfolio overlay for currency risk management, not for tactical trading, due to annual costs and lack of a clear trend.The current US-Swiss interest rate spread favors the dollar, limiting near-term catalysts for FXF appreciation.I recommend a hold rating on FXF, given the absence of strong macroeconomic drivers for CHF strength against the USD. alexsl/iStock via Getty Images The Invesco CurrencyShares Swiss Franc Trust (FXF) is an exchange-traded investment vehicle offered by investment manager Invesco for investors seeking exposure to the Swiss franc. It is one of the most direct vehicles availableThis article was written byNode Analytica Research356 FollowersFollowNode Analytica is a macro - onchain research firm whose founders have developed systematic investment strategies in the digital assets market in order to generate competitive and uncorrelated investment returns for institutional investors.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.