Company Overview

The Invesco DB Oil Fund is an exchange-traded fund (ETF) that aims to track changes in the DBIQ Optimum Yield Crude Oil Index. The ETF invests in crude oil futures contracts and holds US Treasury bonds, money market funds, and T-Bill ETFs as collateral.

The fund is managed by Invesco Capital Management LLC.

Financial Highlights

Fund Performance

• The ETF’s net asset value (NAV) per share increased from $13.96 at December 31, 2023 to $15.58 at March 31, 2024, a gain of 11.6%.

• The market price per share rose from $13.92 to $15.54 over the same period, an increase of 11.64%.

• The fund aims to track the DBIQ Optimum Yield Crude Oil Index. The index gained 11.84% in the first quarter of 2024.

Revenue and Expenses

• Net investment income was 4.59% of average net assets, up from 3.63% a year earlier.

• Expenses after waivers were 0.73% of average net assets, roughly unchanged from 0.74% last year.

Liquidity and Capital Resources

• The fund meets margin requirements by holding US Treasuries, money market funds, and T-Bill ETFs. These liquid assets equaled its net assets.

• The fund has no long-term capital commitments. Its short-term obligations are futures positions used to track the index.

Market Trends

Crude oil prices rose in early 2024 due to:

• Geopolitical tensions in the Middle East and Ukraine
• Improving global economy and expectations of lower interest rates
• OPEC production cuts tightening supply

These factors lifted crude oil futures prices and the benchmark index.

Investment Strategy

The Invesco DB Oil Fund aims to track the DBIQ Optimum Yield Crude Oil Index by:

• Taking long positions in near-term crude oil futures contracts
• Rolling contracts forward each month per the index methodology
• Holding US Treasuries, money funds, and T-Bill ETFs as collateral

The index aims to maximize gains from crude oil futures in contango markets.

Outlook

• Crude oil prices could remain elevated in 2024 if geopolitical tensions persist.
• An economic slowdown could cause a pullback in oil prices.
• The fund should closely track index performance before fees.

In summary, the Invesco DB Oil ETF gained over 11% in the first quarter of 2024 as crude oil futures rose on various supply concerns and an improved demand outlook. The fund aims to track an index optimized for contango markets. Further volatility is likely given unpredictable world events.

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