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 largely driven by the change in market value of the futures contracts held by the Fund.

Q1 2024 NAV benefited from $22.1 million in investment income, net realized losses of $2.6 million, net unrealized gains of $52.8 million, and expenses of $3.4 million.

Revenue and Profit Analysis

The Fund itself does not generate revenue or profit. Its financial performance aims to track the Index, which measures changes in the market value of the underlying commodities.

As an exchange-traded fund, the Fund generates proceeds from the issuance of shares to authorized participants, which are used to invest in the futures contracts to track the performance of the Index.

The Fund holds U.S. Treasuries, money market funds, and T-Bill ETFs to meet margin requirements on the futures contracts as well as for cash management purposes. Any interest or dividends earned on those holdings may result in the Fund’s performance exceeding that of the Index if they exceed the Fund’s fees and expenses.

Strengths and Weaknesses

Strengths

• As an index-tracking fund, the performance closely matches the benchmark Index
• Holdings are transparent and published daily
• Trades like a stock on the NYSE Arca exchange for convenience

Weaknesses

• No guarantee that performance will match the Index
• Futures trading involves leverage and can increase volatility
• Exposure to commodity market risks

Outlook

The near-term outlook for commodities remains positive supported by expectations of easing monetary policy boosting risk appetite. However, downside risks remain around global economic weakness and geopolitical tensions.

The Fund provides exposure to a broad basket of commodities through the Index. By avoiding making active investment decisions, it eliminates manager risk and aims to closely track the benchmark.

As an exchange-traded fund trading on the stock exchange, it provides a convenient way for investors to gain exposure to commodities as an asset class.