Invesco DB Base Metals Fund

What they do

The Fund is a separate series of Invesco DB Multi-Sector Commodity Trust, formed August 3, 2006, and has traded on NYSE Arca under the symbol DBB since November 25, 2008. Invesco Capital Management LLC serves as managing owner, commodity pool operator and commodity trading advisor, and holds 40 general shares. The Fund invests in exchange-traded futures contracts on base metals to track its Index, and may hold U.S. Treasury Obligations, money market mutual funds and T-Bill ETFs as collateral for margin and cash management. Effective November 10, 2025, the Index comprised Aluminum, Zinc, Lead, Nickel, Comex Copper and Copper—Grade A.

Revenue drivers

• Base metals futures exposure — The Fund's performance is driven primarily by its strategy of trading exchange-traded futures on Index Commodities to track the Index; gains or losses on these contracts are the dominant source of changes in net assets.
• Treasury Income — Interest income from holdings of U.S. Treasury Obligations held directly or as collateral, which adds to Index Excess Return performance.
• Money Market Income — Dividends from holdings in money market mutual funds (affiliated or otherwise), used for margin and cash management purposes.
• T-Bill ETF Income — Dividends or distributions of capital gains from holdings of T-Bill ETFs, which track indexes of U.S. Treasury Obligations with remaining maturities up to 12 months.

Recent performance

At June 30, 2026, the Fund reported total assets of $365.0 million, total liabilities of $17.1 million and shareholder equity of $347.9 million, with cash and equivalents of $6.0 million. Net assets were $347,902,966 at June 30, 2026, versus $202,523,707 at December 31, 2025. Trading VaR at June 30, 2026 was $7,379,621, or 0.90% daily volatility at the 99th percentile, and VaR was exceeded 11 times in the six months then ended, compared with VaR of $3,540,832 and 9 exceedances for the year ended December 31, 2025. Annual net income was $30.6 million in 2025, $7.5 million in 2024, $-6.0 million in 2023, $-66.0 million in 2022 and $80.6 million in 2021. Operating cash flow was $-55.7 million in 2025, $16.7 million in 2024, $96.3 million in 2023, $196.9 million in 2022 and $-232.8 million in 2021.

Strategy

The Fund's stated objective is to track changes, positive or negative, in the level of the DBIQ Optimum Yield Industrial Metals Index Excess Return over time, plus the excess, if any, of Treasury Income, Money Market Income and T-Bill ETF Income over Fund expenses. The Fund invests in a portfolio of exchange-traded base metals futures to pursue that objective, with the Index Sponsor selecting and weighting commodities annually based on market value and liquidity and production volume. The Index is rebalanced annually on the sixth business day in November, with commodity weights generally the average of a Filtered Commodity Weight and a Production Weight and subject to a 5% minimum allocation per commodity. If the Fund approaches or reaches CFTC or exchange position limits, it may invest in Index Contracts referencing other Index Commodities or futures on correlated commodities. If the futures market for an Index Contract is thinly traded or inefficient, the Managing Owner may use other futures contracts, which may or may not be Index Commodities.

Risks

• Commodity price risk — The Fund's market risk is primarily influenced by changes in base metals prices, and market movements can produce frequent changes in the fair value of open positions, earnings and cash flow.
• Index tracking risk — The Fund seeks to track the Index but may not do so precisely, and the Index methodology, annual rebalancing and 5% minimum commodity allocations can produce weights that differ from the Fund's actual futures positions.
• Position limit risk — CFTC and futures exchange position limits on Index Contracts may force the Fund to invest in other Index Commodities or correlated futures, which may not track the Index as intended.
• VaR exceedance and leverage-like risk — Trading VaR was exceeded 11 times in the six months ended June 30, 2026, and the filing states that actual trading or non-trading losses could far exceed indicated VaR, including risk of ruin.

Outlook

The filings do not provide forward-looking guidance on Index levels or Fund performance. Management states there were no material accounting estimates involving significant estimation uncertainty in the preparation of the financial statements. The Fund's stated approach remains to track the Index through base metals futures and to hold Treasury Obligations, money market mutual funds and T-Bill ETFs as collateral, with index weights determined annually by the Index Sponsor.