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
In Q1 2024, the ETF’s net asset value (NAV) per share increased by 11.60% from $13.96 at the start of the quarter to $15.58 at the end. This was mainly driven by a $1.45 gain on investments in crude oil futures contracts.
The market price per share also rose by 11.64% in Q1 2024, from $13.92 to $15.54.
Revenue and Expenses
The fund had a net investment income of $0.17 per share in Q1 2024. The expense ratio was 0.73% of average net assets after fee waivers and 0.80% before waivers.
Crude oil prices increased in Q1 2024 due to:
These factors created a supportive environment for crude oil prices.
The fund aims to match its aggregate notional value of futures contracts to its net assets. It held US Treasuries, money market funds, and T-Bill ETFs as collateral assets.
The fund may invest in other commodity futures besides crude oil if gaining exposure through the index contracts becomes impractical.
Key risks faced by the fund include:
The fund has margin requirements and payment obligations for its futures trading and management fees.
The fund meets margin requirements and collateral needs through cash generated from share issuances and redemptions to authorized participants.
It has no long-term capital commitments with adequate liquidity to meet its near-term obligations.
In Q1 2024, the fund had net cash inflows of $19.8 million from operating activities and outflows of $19.8 million from financing activities. This was driven by futures trading and share issuances/redemptions.
The fund invests cash collateral in US Treasuries, money market funds, and T-Bill ETFs.
The crude oil market outlook remains supportive in 2024 due to geopolitics, economic growth, and tight supplies. However, volatility and liquidity risks persist.
The fund aims to match the performance of the DBIQ Optimum Yield Crude Oil Index through its futures trading strategy. But past performance does not guarantee future results.