As part of the series of currency exchange-traded funds (ETFs) offered by Invesco PowerShares, the CurrencyShares British Pound Sterling Trust (FXB) is designed to track the price of the British pound sterling, the official currency of the United ingdom.
Incorporated in the United States, FXB holds British pounds in a deposit account. Investors also should do their due diligence regarding the fund’s tax efficiency, since any distributions or capital gains are taxed at ordinary income rates, without regard to the holding period.
With $4.76 million in daily trading volume and a tight average 60-day trading spread of just 0.02%, analysts rate FXB highly in terms of trading liquidity. Thus, both large and small investors should be able to trade the fund easily.
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