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 Returns	Increased 4.52%	Decreased 3.38%

Performance Discussion

First Quarter 2024

In the first quarter of 2024, the Fund’s net asset value per share increased from $22.05 to $22.98, representing a 4.22% total return. The market price per share increased from $22.06 to $22.97, representing a 4.13% total return.

The Index increased 3.13% during this period. Rising prices for 8 of the 14 commodities contributed to this increase. Brent crude oil, copper, gold, WTI crude oil, gasoline, silver, sugar and diesel prices rose, partially offset by falling prices for aluminum, corn, natural gas, soybeans, wheat and zinc.

The Fund aims to closely track the Index. When the Fund’s income from its cash holdings exceeds expenses, the Fund’s returns can exceed Index returns. In the first quarter of 2024, the Fund’s total return exceeded the Index return due to this excess income.

First Quarter 2023

In the first quarter of 2023, the Fund’s net asset value per share decreased from $24.65 to $23.76, representing a 3.61% total return. The market price per share decreased from $24.67 to $23.75, representing a 3.73% total return.

The Index decreased 4.50% during this period. Falling commodity prices, especially for energy commodities, contributed to this decrease. Natural gas and diesel fuel prices fell significantly. Grain prices also declined due to improved supply conditions. Rising prices for aluminum, copper, gold, silver, sugar and zinc partially offset the decreases.

Revenue and Profit Discussion

In the first quarter of 2024, the Fund had total income of $22.1 million. After expenses, the Fund had net income of $69.0 million, primarily due to $52.8 million in unrealized gains on futures positions.

In the first quarter of 2023, the Fund had total income of $26.8 million. After expenses, the Fund had a net loss of $95.6 million, primarily due to $70.3 million in realized losses and $47.2 million in unrealized losses on futures positions.

Strengths and Weaknesses

Strengths

• The Fund provides exposure to a diversified basket of commodity futures with the aim of closely tracking the Index.

• Futures contracts allow the Fund to efficiently obtain exposure to commodity prices without directly buying the physical commodities.

Weaknesses

• The Fund’s performance relies heavily on commodity prices, which can be volatile.

• Contango, when futures prices are higher than spot prices, can negatively impact returns over time.

Outlook

The near-term outlook for commodity prices depends on several key factors:

• Economic growth - Stronger global growth supports increased demand for commodities. Any slowdown or recession poses a risk.

• Geopolitics - Conflicts and tensions in the Middle East, Ukraine and other regions have the potential to disrupt commodity supplies and affect prices.

• Monetary policy - Actions by central banks, especially the U.S. Federal Reserve, influence investor appetite for commodities. Interest rate changes impact prices.

While risks remain, the overall backdrop appears supportive for commodities heading into the second quarter of 2024. However, a deterioration in the macroeconomic or geopolitical environment could alter the outlook.

The Fund aims to closely track the Index in order to provide investors with a convenient way to gain diversified commodity exposure. However, past performance is not necessarily indicative of future results.