Invesco DB Commodity Index Tracking Fund

What they do

The Fund invests in commodity futures on a broad basket of energy, precious metals, industrial metals, and agricultural commodities to replicate the Index. It holds U.S. Treasury Obligations, money market mutual funds, and T-Bill ETFs as collateral for margin and cash management. Shares are issued and redeemed only in Creation Units of 50,000 shares through Authorized Participants, and the Fund trades on NYSE Arca under the ticker DBC.

Revenue drivers

• Energy futures — The largest sector in the Index, including WTI, Brent, natural gas, gas oil, and gasoline; performance drives most of the Fund's net income.
• Precious metals futures — Gold, silver, and platinum positions contribute to index tracking and portfolio returns.
• Industrial metals futures — Aluminum, copper, lead, nickel, and zinc provide diversification within the commodity basket.
• Agriculture futures — Cocoa, coffee, corn, cotton, soybeans, wheat, and livestock contracts round out the Index.

Recent performance

In the six months ended June 30, 2026, the Fund reported net assets of $1.58 billion, daily volatility of 0.98%, and a 99% VaR of $36.3 million exceeded 13 times. For the year ended December 31, 2025, net assets were $1.22 billion, daily volatility was 0.77%, and VaR was $22.0 million exceeded 11 times. Net income was $92.5 million in 2025, an improvement from $22.4 million in 2024 and a loss of $151.7 million in 2023. Operating cash flow was $141.9 million in 2025, down from $431.5 million in 2024. As of June 30, 2026, the Fund had no cash or equivalents, total assets of $1.59 billion, and total liabilities of $8.9 million.

Strategy

The Fund's stated objective is to track the Index, and it does so by investing in exchange-traded futures on the Index Commodities. The Index is rebalanced annually by the Index Sponsor based on three-year total dollar volume and production weights, with sector caps. To manage position limits, the Fund may invest in correlated futures or other commodities. The Fund may also use T-Bill ETFs to gain Treasury exposure, but this is not for trading purposes.

Risks

• Commodity price volatility — Market movements can cause significant fluctuations in the Fund's net asset value and income, as seen in 2023 losses.
• Futures position limits — The Fund may be forced to substitute correlated contracts or reduce positions, potentially tracking error.
• Tracking error — Index weighting changes and practical investment constraints could cause the Fund to deviate from the Index.
• Regulatory and market disruption — Government interventions, illiquid markets, and political upheavals could result in material losses.

Outlook

Management does not provide formal forward-looking guidance, but the Fund continues to operate with the objective of tracking the Index. The most recent 8-K filings are administrative (officer changes), and no strategic changes have been announced. The Fund's VaR metrics indicate ongoing exposure to commodity price moves.