In the first quarter of 2024, Invesco DB Commodity Index Tracking Fund reported a net asset value of $74.7 million. The fund’s financial statements show an increase in revenue and a decrease in expenses, leading to a higher net income. The management discussed the market conditions and the fund’s performance in detail, highlighting the risks associated with the commodity market. The fund also disclosed any legal proceedings, risk factors, and unregistered sales of equity securities.
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% |
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.
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:
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:
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.
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.