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

In Q1 2024, the prices of 8 out of the 14 commodities in the Index increased, while 6 decreased. This led to a 3.13% increase in the Index level.

The strongest performers were:

• Brent Crude Oil: +10.65%
• RBOB Gasoline: +12.67%
  
• Gold: +7.80%

The weakest performers were:

• Natural Gas: -24.56%
• Wheat: -9.66%
• Aluminum: -2.51%

Fund Performance Drivers

Share Price

The market price of the Fund’s shares increased 4.13% in Q1 2024 compared to a decrease of 3.73% in Q1 2023. This was driven by the overall increase in commodity prices over the period.

Net Asset Value

The Net Asset Value (NAV) per share increased 4.22% in Q1 2024 compared to a decrease of 3.61% in Q1 2023. This was largely driven by the change in market value of the futures contracts held by the Fund.

Q1 2024 NAV benefited from $22.1 million in investment income, net realized losses of $2.6 million, net unrealized gains of $52.8 million, and expenses of $3.4 million.

Revenue and Profit Analysis

The Fund itself does not generate revenue or profit. Its financial performance aims to track the Index, which measures changes in the market value of the underlying commodities.

As an exchange-traded fund, the Fund generates proceeds from the issuance of shares to authorized participants, which are used to invest in the futures contracts to track the performance of the Index.

The Fund held $100 million in U.S. Treasuries and $324.6 million in affiliated investments as of March 31, 2024 which generate interest and dividend income. After deducting fees and expenses, this income contributes to the Fund’s ability to outperform the Index.

Strengths and Weaknesses

Strengths

• As an index fund, the Fund provides exposure to a broad basket of commodities across multiple sectors
• Futures contracts allow the Fund to closely track the Index
• Very liquid structure as an exchange-traded fund

Weaknesses

• Performance highly dependent on volatile commodity prices
• Contango in certain futures curves can cause a drag on performance
• No guarantee the Fund will achieve returns similar to the Index

Future Outlook

The near-term outlook for commodities remains positive supported by expectations of resilient economic growth and tightening supplies. However, performance across individual commodities is likely to remain volatile.

Upside risks include further escalation in geopolitical tensions disrupting commodity flows. Downside risks include faster-than-expected slowdowns in major economies like the U.S. and China weighing on demand.

The Fund will continue to track the Index by investing in futures contracts on the underlying commodities. Interest and dividend income earned on its cash and securities holdings should lead to slightly better returns than the Index, after fees and expenses.