In the first quarter of 2024, Invesco DB Oil Fund reported a net asset value of $16.15 per share, with total assets of $1.2 billion and total liabilities of $1.1 billion. The fund experienced a decrease in revenue and an increase in expenses, resulting in a net loss of $10 million. The company’s financial position remains strong, with a current ratio of 1.04 and a quick ratio of 0.99. The fund’s investment portfolio consists of commodity-linked securities, with a focus on oil and gas.
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.
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.
Key Financial Metrics | Q1 2024 | Q1 2023 |
---|---|---|
Net Asset Value Per Share | $15.58 | $14.59 |
Net Investment Income | 4.59% | 3.63% |
Expenses After Waivers | 0.73% | 0.74% |
Crude oil prices rose in early 2024 due to several factors:
As an oil futures ETF, Invesco DB Oil Fund benefited from the increase in crude prices. Its net asset value and market price gained over 11% in the first three months of the year.
Meanwhile, the fund continued to generate solid investment income from its holdings in Treasuries, money market funds, and T-Bill ETFs. This helped offset expenses and boosted returns beyond the underlying index.
Crude prices are likely to remain elevated in the near term given ongoing geopolitical uncertainties and tight supplies.
However, an economic slowdown could eventually weigh on oil demand and lead to lower prices.
Invesco DB Oil Fund should continue to closely track the performance of its benchmark index minus fees and expenses.
The fund may outperform the index if it generates sufficient income from its collateral holdings.
In summary, the ETF achieved strong gains in early 2024 thanks to rising crude oil prices. While uncertainty exists around the outlook, the fund remains an effective tool for oil exposure. Cost-efficient structure and potential income give it an edge over the index.