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 primarily due to:

• An increase in the level of the Index, reflecting higher commodity futures prices
• Net investment income

Profit and Loss

The Fund had net income of $69 million in Q1 2024 compared to a net loss of $95.6 million in Q1 2023. This was primarily due to:

• Higher commodity futures prices leading to unrealized gains
• Net investment income

Commodity Price Trends

Prices for most commodities rose in Q1 2024, driven by an improving economic backdrop and geopolitical tensions boosting investor risk appetite.

Energy commodities were the top performers, with natural gas the key laggard due to high inventories and reduced seasonal demand.

Precious metals also performed strongly based on expectations of easing interest rates and increased safe haven demand.

Industrial metals staged a slight comeback towards the end of the quarter as low prices started to curb production.

Grain prices remained under pressure due to ample global supplies.

Fund Operations

Capital and Liquidity

The Fund meets margin requirements and collateral obligations using its holdings of US Treasuries, money market funds, and T-Bill ETFs.

The Fund has no material cash requirements and is not aware of any trends that are reasonably likely to impact its capital resources or liquidity.

Cash Flows

In Q1 2024, the Fund had net cash inflows of $36.2 million from operating activities and outflows of $36.2 million from financing activities.

This compared to net inflows of $382.4 million from operations and outflows of $382.4 million from financing in Q1 2023.

The differences were primarily driven by lower net purchases of US Treasuries and affiliated investments in Q1 2024.

Outlook

With an improving economic backdrop and expectations of easing interest rates, commodity prices could continue to benefit over the near-term.

However, high inventories and weak seasonal demand could weigh on natural gas prices.

Meanwhile, ample grain supplies globally could keep crop prices subdued.

Overall commodity price performance will remain dependent on macroeconomic trends as well as geopolitical developments.

The Fund will continue to track the Index in order to provide investors with a convenient way to gain exposure to commodity futures price movements.