Overview

The Invesco DB Commodity Index Tracking Fund aims to track the DBIQ Optimum Yield Diversified Commodity Index Excess Return (the Index). The Index is intended to reflect changes in the market value of 14 commodities that make up the index.

The Fund invests in futures contracts on those 14 commodities to track the performance of the Index. The value of the Fund’s shares is expected to fluctuate based on changes in the value of those futures contracts.

Key Financial Metrics

Metric	Q1 2024	Q1 2023
Net Asset Value Per Share	Increased 4.22%	Decreased 3.61%
Index Level	Increased 3.13%	Decreased 4.50%
Underlying Commodity Index Level	Increased 4.52%	Decreased 3.38%

Performance Details

Commodity Performance

The overall commodity complex performed positively in Q1 2024, supported by an improving economic backdrop and rising geopolitical tensions.

Energy commodities were the top contributors, with gains in crude oil, diesel, and gasoline futures. Natural gas was weaker due to high inventories and reduced seasonal heating demand.

Precious metals performed strongly as well, particularly gold, helped by expectations of easing interest rates and increased demand for safe haven assets.

Industrial metals staged a modest comeback late in the quarter as low prices led to supply curtailments.

Grain prices remained under pressure due to ample global supplies.

Fund Performance Drivers

Q1 2024

Rising futures prices for 8 out of 14 commodities contributed to Index gains. Increased value of Treasury bill holdings also added to Fund returns.

Top commodity performers:

• Brent Crude Oil
• Copper
• Gold
• Light Sweet Crude Oil
• RBOB Gasoline
• Silver
• Sugar
• Ultra-Low Sulfur Diesel

Q1 2023

Falling energy prices, especially for natural gas and diesel, drove Index losses. Grain prices also weakened on improved supply outlooks.

Top commodity performers:

• Aluminum
• Copper
  
• Gold
• Silver
• Sugar
• Zinc

Financial Analysis

Higher commodity prices and value of Treasury holdings led to a $69 million net income gain in Q1 2024 compared to a $95.6 million net loss in Q1 2023.

The Fund saw cash inflows from the issuance of new shares to investors, while distributions paid to investors were minimal.

Outlook

Going forward, geopolitical uncertainties could continue to introduce volatility across the commodity complex. However, an improving demand backdrop and the prospect for easing monetary policy could provide support.

The Fund will continue to track the Index by holding futures positions in the 14 underlying commodities broadly in proportion to global production levels.