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. 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%

This performance was driven by an improving economic outlook, rising geopolitical risks, and expectations of easing interest rates.

In Q1 2023, the prices of 6 out of 14 commodities increased, while 8 decreased. The strongest performers were:

• Sugar: +22.84%
• Gold: +8.23%
• Copper: +8.66%

The weakest performers were:

• Natural Gas: -42.96%
• Ultra Low Sulfur Diesel: -11.85%
• Wheat: -11.24%

This performance was driven by declines in energy prices and gains in safe haven assets like gold.

Fund Performance

Market Price

The market price per share increased 4.13% in Q1 2024 compared to a decrease of 3.73% in Q1 2023.

Net Asset Value

The Net Asset Value per share increased 4.22% in Q1 2024 compared to a decrease of 3.61% in Q1 2023.

The NAV increase in Q1 2024 was driven by gains in 8 out of 14 underlying commodities. The NAV decrease in Q1 2023 was driven by declines in 8 out of 14 commodities.

Revenue and Expenses

Q1 2024

• Total income: $22.1 million
• Net realized gain/loss: -$2.6 million
• Net unrealized gain/loss: $52.8 million
• Total expenses: $3.4 million

Q1 2023

• Total income: $26.8 million
• Net realized gain/loss: -$70.3 million
• Net unrealized gain/loss: -$47.2 million
• Total expenses: $4.9 million

The changes in revenue and expenses between periods were driven by changes in the prices of underlying commodity futures contracts.

Future Outlook

The near-term outlook for commodity prices and the Fund’s performance remains uncertain. Prices could continue to be impacted by factors like economic conditions, geopolitical events, weather, and supply and demand dynamics.

However, over the long term, investing in a diversified basket of commodities may provide positive returns and help hedge against inflation.

The Fund aims to closely track the performance of the Index in order to provide investors with convenient access to investing in commodities.

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