In the first quarter of 2024, Invesco DB Oil Fund reported a net asset value of $16.15 per share, with total assets of $1.2 billion and total liabilities of $1.1 billion. The fund experienced a decrease in revenue and an increase in expenses, resulting in a net loss of $10 million. The company’s financial position remains strong, with a current ratio of 1.04 and a quick ratio of 0.99. The fund’s investment portfolio consists of commodity-linked securities, with a focus on oil and gas.
The Invesco DB Oil Fund is an exchange-traded fund (ETF) that aims to track changes in the DBIQ Optimum Yield Crude Oil Index. The ETF invests in crude oil futures contracts and holds US Treasury bonds, money market funds, and T-Bill ETFs as collateral.
The fund is managed by Invesco Capital Management LLC.
Fund Performance
In Q1 2024, the ETF’s net asset value (NAV) per share increased by 11.60% from $13.96 at the start of the quarter to $15.58 at the end. This was mainly driven by a $1.45 gain on investments in crude oil futures contracts.
The market price per share showed a similar 11.64% increase over the quarter.
Revenue and Expenses
Q1 2024 | Q1 2023 |
---|---|
Net Investment Income | 4.59% of average net assets |
Expenses after waivers | 0.73% of average net assets |
Expenses prior to waivers | 0.80% of average net assets |
Expenses remained low and stable from last year. Higher net investment income was driven by stronger performance of futures investments.
Crude oil prices rose around 12% in Q1 2024, supported by:
This environment was positive for crude oil futures prices and the fund’s investments.
As of March 31, 2024, the fund held:
The fund has no outstanding capital commitments or off-balance sheet arrangements.
Its main source of capital is the ongoing issuance of new ETF shares to authorized participants.
In Q1 2024:
This cash was mainly used to invest in futures positions, US Treasuries, and money market instruments to track the index.
The fund aims to closely track the performance of the DBIQ Optimum Yield Crude Oil Index Excess Return.
If income from the fund’s cash holdings exceeds expenses, the ETF share price could outperform the index. However, higher fees and expenses could cause underperformance instead.
Geopolitics, OPEC policy, and macroeconomic conditions will remain key drivers of crude oil futures prices and the ETF’s performance going forward.