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 Details

Commodity Returns

In Q1 2024, 8 out of the 14 commodities in the Index had positive returns, led by gains in energy commodities like Brent crude oil, RBOB gasoline, and ultra-low sulfur diesel.

Precious metals like gold and silver also performed well, supported by expectations of interest rate cuts by the Federal Reserve.

On the downside, natural gas continued to lag due to high inventories and reduced winter heating demand. Grains like corn, soybeans and wheat remained under pressure due to ample global supplies.

Fund Share Price

The market price of the Fund’s shares increased 4.13% in Q1 2024 compared to a 3.73% decrease in Q1 2023.

Driving the increase was improved investor risk appetite supported by a resilient U.S. economy and expectations for Fed easing.

In Q1 2023, losses were largely driven by declines in energy commodities like natural gas and diesel.

Fund Net Asset Value

The Net Asset Value (NAV) per share increased 4.22% in Q1 2024 compared to a 3.61% decrease in Q1 2023. This was driven by the commodity futures price changes described above.

Q1 2024 net income was $69 million compared to a net loss of $95.6 million in Q1 2023.

Revenue and Profit Analysis

The Fund generates income from the Treasury bills, money market funds, and ETFs it holds. This income is used to help offset Fund expenses.

When this income exceeds expenses, the Fund’s NAV tends to exceed the Index level.

In Q1 2024, the Fund’s total income was $22.1 million, helping drive the NAV performance above the Index return of 3.13%.

Fund Strengths and Risks

Key Strengths

• Tracks a diversified basket of commodity futures
• Managed by an experienced commodity pool operator
• Holds Treasury bills and money funds to help offset expenses

Main Risks

• Commodity prices can be volatile
• Changes in commodity futures regulation or market conditions
• Counterparty risk from commodity brokers and clearing houses
• Investor redemptions requiring assets to be liquidated

Outlook

The Managing Owner believes commodities will continue to be an attractive asset class for investors seeking inflation protection and portfolio diversification.

They see opportunities if the Federal Reserve eases interest rates as expected to support economic growth. This could weaken the dollar and make commodities more affordable globally.

However, risks remain from potential expanded military conflicts globally, terrorism events, or other geopolitical consequences that could negatively impact financial markets.