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% |
In Q1 2024, the prices of 8 out of the 14 commodities in the Index increased, while 6 decreased. The strongest performers were:
The weakest performers were:
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:
The weakest performers were:
This performance was driven by declines in energy prices and gains in safe haven assets like gold.
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.
Q1 2024
Q1 2023
The changes in revenue and expenses between periods were driven by changes in the prices of underlying commodity futures contracts.
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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