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FXB

Invesco CurrencyShares British Pound Sterling Trust
TREND FOLLOWING PERFORMANCE HISTORY
2026-09-07
Executive Summary
The quantitative backtest for FXB (Invesco CurrencyShares British Pound Sterling Trust) using the Moving Average (50/200)* strategy in a Investing context demonstrated its primary role in risk mitigation, experiencing a maximum drawdown of -21.7% (compared to the benchmark's drawdown of -47.7%). Over the evaluated period, this protective approach generated a Compound Annual Growth Rate (CAGR) of 0.1%, compared to a Buy-and-Hold benchmark return of -1.7%. The strategy executed 13 total trades.

* Moving Average (50/200): Classic Moving Average Crossover (e.g., 50-day crossing 200-day). The foundational basis of research-grade trend following.

🛡️ FXB Drawdown Shield & Downside Protection

Why Drawdown Dictates Longevity →
Peak Drawdown Defense
-21.7% (vs -47.7% B&H)
+26.0% shallower drawdown
Downside Efficiency
0.02 Sortino
Downside risk-adjusted return
Capital Sheltered from Risk
39.1% of Time
Earning Treasury yield during downturns
* Drawdown Shield demonstrates how systematic trend-following bounded historical drawdowns and protected principal capital compared to passive Buy & Hold.

📊 FXB Quality Metrics & KPI Summary

Metric 1Y5Y10YFull
StrategyB&HStrategyB&HStrategyB&HStrategyB&H
Max Drawdown-4.35%-4.35%-9.93%-22.93%-19.86%-26.11%-21.71%-47.73%
Sharpe Ratio0.440.440.330.190.220.110.02-0.18
Sortino Ratio0.720.720.410.270.240.150.02-0.23
CAGR2.81%2.81%1.90%1.59%1.38%0.91%0.10%-1.70%
% Time Invested100.0%100.0%65.7%100.0%62.8%100.0%60.9%100.0%
Trades / Year0.00.00.40.00.60.00.70.0

Cumulative Growth Performance

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Hydrating Performance Trajectory... Loading historical performance data
Figure 1: Cumulative Trajectory Analysis. Logarithmic growth comparison of FXB under the Moving Average (50/200) strategy (Investing) versus Buy & Hold. The strategy produced a 0.1% CAGR with a -21.7% Max Drawdown across 13 trade signals (compared to Buy & Hold's -1.7% CAGR and -47.7% Max Drawdown).

Return Distribution Analysis

Histogram of monthly return distribution for FXB under Moving Average (50/200) strategy in Investing context, illustrating downside risk mitigation and return skewness.
Figure 2: Monthly Return Distribution Profile. Monthly return distribution for FXB under Moving Average (50/200) (Investing). Visualizes return frequency, volatility clustering, and tail-risk truncation relative to standard buy-and-hold returns.
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Top 5 non-correlated asset sleeves evaluated on 1Y daily percentage returns (Pearson r). Compare them side-by-side in Compare Studio to analyze portfolio diversification.

Diversifier Asset Category 1Y Correlation (r) Action
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Trade History

This log shows every signal-driven transition. Completed trades reflect standard market cycles. An Open or Mark-to-Market exit denotes an active position (either in the primary asset or a cash/yield sleeve) valued at the current price for reporting purposes. Interest entries record yield accrued from cash or cash alternatives (like BIL) during out-of-market defensive periods.

Entry DateExit DateTypeAllocationEntry PriceExit PriceNet Return %Exit Reason
🔒 Active Positions & Recent Execution Signals Hidden
Trading on delayed data carries high execution risk. Current allocations, pending next-day rebalances, and active execution signals (last 60 days) require a Premium subscription.
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2025-01-10 2025-04-03 Interest (CASH) 100% $1.00 $1.01 0.96% Interest Income
2023-12-15 2025-01-10 Completed 100% $113.69 $113.46 -0.26% Signal
2023-11-02 2023-12-15 Interest (CASH) 100% $1.00 $1.01 0.64% Interest Income
2023-01-18 2023-11-02 Completed 100% $108.49 $108.66 0.11% Signal
2021-09-03 2023-01-18 Interest (CASH) 100% $1.00 $1.02 2.28% Interest Income
2020-05-01 2021-09-03 Completed 100% $109.76 $120.65 9.87% Signal
2020-04-07 2020-05-01 Interest (CASH) 100% $1.00 $1.00 0.01% Interest Income
2019-12-03 2020-04-07 Completed 100% $113.97 $108.37 -4.96% Signal
2019-06-05 2019-12-03 Interest (CASH) 100% $1.00 $1.01 0.95% Interest Income
2019-03-18 2019-06-05 Completed 100% $116.29 $111.59 -4.09% Signal
2018-06-21 2019-03-18 Interest (CASH) 100% $1.00 $1.02 1.65% Interest Income
2017-05-19 2018-06-21 Completed 100% $114.71 $116.32 1.35% Signal
2015-11-05 2017-05-19 Interest (CASH) 100% $1.00 $1.01 0.61% Interest Income
2015-04-30 2015-11-05 Completed 100% $136.32 $135.01 -1.01% Signal
2014-09-22 2015-04-30 Interest (CASH) 100% $1.00 $1.00 0.01% Interest Income
2013-03-22 2014-09-22 Completed 100% $135.70 $145.23 6.97% Signal
2013-02-27 2013-03-22 Interest (CASH) 100% $1.00 $1.00 0.01% Interest Income
2012-09-20 2013-02-27 Completed 100% $144.88 $135.54 -6.50% Signal
2012-07-09 2012-09-20 Interest (CASH) 100% $1.00 $1.00 0.02% Interest Income
2012-01-26 2012-07-09 Completed 100% $140.80 $138.92 -1.39% Signal
2011-10-03 2012-01-26 Interest (CASH) 100% $1.00 $1.00 0.01% Interest Income
2010-09-10 2011-10-03 Completed 100% $138.59 $139.15 0.35% Signal
2010-02-08 2010-09-10 Interest (CASH) 100% $1.00 $1.00 0.09% Interest Income
2009-05-28 2010-02-08 Completed 100% $144.12 $140.66 -2.45% Signal
2008-08-26 2009-05-28 Interest (CASH) 100% $1.00 $1.00 0.28% Interest Income
2008-07-25 2008-08-26 Completed 100% $177.75 $164.72 -7.38% Signal
2008-07-23 2008-07-25 Interest (CASH) 100% $1.00 $1.00 0.01% Interest Income

Next Steps: Portfolio Integration & Comparative Analysis

Single-ticker trend following is designed to truncate tail risk inside a broader portfolio. View where FXB ranks across 40+ tracked assets, evaluate correlation against non-correlated diversifiers, or model it inside a custom all-weather asset mix.

📊 View Full 40-Asset Backtest Matrix → 🛠️ Build Custom Portfolio with FXB → ⚖️ Compare FXB vs Non-Correlated Assets →