Invesco DB Commodity Index Tracking Fund
For the period ended Jun 30, 2024. Filed Aug 7, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 7, 2024
DBC$31.54+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-08.
0000950170-24-054964
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0000950170-24-092107
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 87 previous paragraphs and 97 current paragraphs.
68 unchanged; 13 reworded; 16 added; 5 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 2 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
Returns for the Three and Six Months Ended June 30, 2024 and 2023
Current report
For the three months ended June 30, 2024, the NYSE Arca market value of each Share increased from $22.97 per Share to $23.25 per Share. The Share price low and high for the three months ended June 30, 2024 and related change from the Share price on March 31, 2024 was as follows: Shares traded at a low of $22.71 per Share (-1.13%) on June 4, 2024, and a high of $23.94 per Share (+4.22%) on May 28, 2024. The total return for the Fund on a market value basis was +1.22%.
Current report
Commodities performance was mixed in the second quarter of 2024, with the Fund’s performance ending close to flat. Agricultural and energy commodities were both pressured while metals managed to shine. In grains, while renewed weather concerns did take the market by surprise in April and May, sending wheat prices skyrocketing, the rally was short-lived. Sugar also continued its decline, pressured by improving global production prospects. In energy, crude oil and refined products all moved lower. While some of that decline was driven by broader risk off moves due to higher-for-longer Federal Reserve rhetoric, other drivers included fading geopolitical risk premium, US crude inventory builds, and OPEC announcing plans to bring back barrels later this year. Both precious and industrial metals moved higher over the quarter; tight concentrate supplies in Zinc and Copper threatened to curtail refined metal production while optimism for gold continued despite Federal Reserve developments. Zinc was the top contributor for the quarter, while corn detracted the most from the Fund’s returns.
Current report
For the three months ended June 30, 2023, the NYSE Arca market value of each Share decreased from $23.75 per Share to $22.72 per Share. The Share price low and high for the three months ended June 30, 2023 and related change from the Share price on March 31, 2023 was as follows: Shares traded at a low of $22.06 per Share (-7.12%) on May 31, 2023, and a high of $24.47 per Share (+3.03%) on April 14, 2023. The total return for the Fund on a market value basis was -4.34%.
Current report
Commodities ended the second quarter of 2023 lower with the energy and metals sector detracting the most from the Fund’s performance. From a single commodity standpoint, Ultra-Low Sulfur Diesel, Corn and Zinc were the largest underperformers. Following the slight positive performance in the first quarter of 2023, industrial metals plunged sharply in the second quarter with Aluminum, Copper and Zinc all moving lower. Zinc fared the worst among the three with front month prices dropping nearly 20% through the quarter as Chinese demand continued to disappoint and smelters were expected to restart amid the sharp plunge in energy prices. Like industrial metals, all energy commodities included in the Index also fell in the second quarter, the worst being Ultra-Low Sulfur Diesel, which saw its front month futures plunge another 8% through the quarter as Russian supplies continued to make it onto the market despite the European Union sanctions, and supplies remained abundant in the US following the physical hoarding leading up to the ban. For Corn, prices were heavily pressured by abundant supplies and lower Chinese demand as US grains remained largely uncompetitive in global markets amid strong harvests in Brazil.
Current report
Net income (loss) for the three months ended June 30, 2024 was $19.4 million, primarily resulting from $22.9 million of income, net realized gain (loss) of $(39.6) million, net change in unrealized gain (loss) of $39.9 million and net operating expenses of $3.7 million.
Current report
Net income (loss) for the three months ended June 30, 2023 was $(95.0) million, primarily resulting from $25.7 million of income, net realized gain (loss) of $(145.1) million, net change in unrealized gain (loss) of $28.8 million and net operating expenses of $4.4 million.
Current report
FOR THE SIX MONTHS ENDED JUNE 30, 2024 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2023
Current report
Fund Share Price Performance
Current report
Commodities finished the first half of 2023 in steep negative territory. Energy commodities drove the bulk of the underperformance with most of the losses coming from Ultra-Low Sulfur Diesel and natural gas. In the first quarter of 2023, US natural gas prices declined steeply (front month US natural gas prices were down nearly 50% for the quarter), pressured by persistently warm temperatures in both the US and Europe. While prices did recover in the second quarter on hotter-than-expected weather forecasts, it was still down over 35% year-to-date. Diesel prices fell in the first quarter with Europe boosting imports of
Current report
Russian supplies ahead of the February 5th ban and the weakness continued into the second quarter, weighed down by the resulting supply overhang, leaving front month prices down over 25% year-to-date. However, prices did recover significantly in June following the cooler-than-expected CPI print raising bets that the Federal Reserve is near the end of its aggressive rate hike cycle. Grains were also significant detractors, falling on ample global supplies and the continued renewal of the Black Sea Grain Initiative, making US crops uncompetitive on the global market.
Current report
Fund Share Net Asset Performance
Current report
For the six months ended June 30, 2024, the NAV of each Share increased from $22.05 per Share to $23.25 per Share. Rising commodity futures contracts prices for Aluminum, Brent Crude Oil, Copper Grade A, Gold, Light Sweet Crude Oil, RBOB Gasoline, Silver, Ultra-Low Sulphur Diesel and Zinc were partially offset by falling commodity futures contracts prices for Corn, Natural Gas, Soybeans, Sugar and Wheat during the six months ended June 30, 2024, contributing to an overall 3.21% increase in the level of the Index and to a 6.00% increase in the level of the DBIQ–OY Diversified TR™. The total return for the Fund on a NAV basis was +5.44%.
Current report
Net income (loss) for the six months ended June 30, 2024 was $88.4 million, primarily resulting from $45.0 million of income, net realized gain (loss) of $(42.2) million, net change in unrealized gain (loss) of $92.7 million and net operating expenses of $7.1 million.
Current report
For the six months ended June 30, 2023, the NAV of each Share decreased from $24.65 per Share to $22.72 per Share. Falling commodity futures contracts prices for Aluminum, Brent Crude Oil, Corn, Light Sweet Crude Oil, Natural Gas, RBOB Gasoline, Silver, Soybeans, Ultra-Low Sulphur Diesel, Wheat and Zinc were partially offset by rising commodity futures contracts prices for Copper Grade A, Gold and Sugar during the six months ended June 30, 2023, contributing to an overall 9.62% decrease in the level of the Index and to a 7.38% decrease in the level of the DBIQ–OY Diversified TR™. The total return for the Fund on a NAV basis was -7.83%.
Current report
Net income (loss) for the six months ended June 30, 2023 was $(190.6) million, primarily resulting from $52.5 million of income, net realized gain (loss) of $(215.4) million, net change in unrealized gain (loss) of $(18.4) million and net operating expenses of $9.3 million.
Removed paragraphs (5)
Previous report
NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR INDEX LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.
Previous report
NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR INDEX LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.
Previous report
Commodities performed negatively in the first quarter of 2023, largely driven by losses in the energy sector. All five energy commodities detracted from the Fund’s performance with natural gas and NY Harbor Ultra Low Sulfur Diesel (ULSD) accounting for the bulk of it. U.S. natural gas prices went into freefall (front month U.S. natural gas prices were down nearly 50% for the quarter), pressured by persistently warm temperatures in both the U.S. and Europe while diesel plunged with Europe stocking up on Russian supplies ahead of the February 5, 2023 ban on imports of Russian gasoline, diesel and other products used throughout Europe. Grains also took away from the Fund’s returns as robust wheat harvests from Russia and Australia, projections for bumper Brazilian corn and soybeans harvests, as well as the successful extension of the Black Sea Grain Initiative, which established a shipping corridor for grains out of Ukraine, in March, continued to ease supply concerns. Sugar was the top contributor for the Fund, with prices rallying on Indian export uncertainty, followed by gold, which soared in March as the collapse of Silicon Valley Bank and resulting contagion fears boosted safe haven demand. However, this also led to outflows in risk assets like commodities, pressuring the rest of the complex to end the quarter.
Previous report
Net income (loss) for the three months ended March 31, 2024 was $69.0 million, primarily resulting from $22.1 million of income, net realized gain (loss) of $(2.6) million, net change in unrealized gain (loss) of $52.8 million and net operating expenses of $3.4 million.
Previous report
Net income (loss) for the three months ended March 31, 2023 was $(95.6) million, primarily resulting from $26.8 million of income, net realized gain (loss) of $(70.3) million, net change in unrealized gain (loss) of $(47.2) million and net operating expenses of $4.9 million.
Reworded paragraphs (13)
Previous wording
As of the date of this Report, each of BMO Capital Markets Corp., BNP Paribas Securities Corp., BofA Securities, Inc., Cantor Fitzgerald & Co., Citadel Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Goldman Sachs Execution & Clearing LP, Interactive Brokers LLC, Jane Street Capital LLC, Jefferies LLC, JP Morgan Securities Inc., Bank of America Securities, Morgan Stanley & Co. LLC, Nomura Securities International Inc., RBC Capital Markets LLC, SG Americas Securities LLC, UBS Securities LLC, Virtu Americas LLC and Virtu Financial Capital Markets LLC has executed a Participant Agreement and are the only Authorized Participants.
Current wording
As of the date of this Report, each of Bank of America Securities, BMO Capital Markets Corp., BNP Paribas Securities Corp., BofA Securities, Inc., Cantor Fitzgerald & Co., Citadel Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Goldman Sachs Execution & Clearing LP, Interactive Brokers LLC, Jane Street Capital LLC, Jefferies LLC, JP Morgan Securities Inc., Morgan Stanley & Co. LLC, Nomura Securities International Inc., RBC Capital Markets LLC, SG Americas Securities LLC, UBS Securities LLC, Virtu Americas LLC and Virtu Financial Capital Markets LLC has executed a Participant Agreement and are the only Authorized Participants.
Previous wording
Net cash flow provided by (used in) operating activities was $36.2 million and $382.4 million for the three months ended March 31, 2024 and 2023, respectively. These amounts primarily include net income (loss), net purchases and sales of money market mutual funds and net purchases and sales of United States Treasury Obligations and affiliated investments. The Fund invests in United States Treasury Obligations, money market mutual funds and T-Bill ETFs (affiliated or otherwise), if any, for margin and/or cash management purposes. While the Fund's performance reflects the appreciation and depreciation of those holdings, the Fund's performance, whether positive or negative, is driven primarily by its strategy of trading futures contracts with the aim of seeking to track the Index.
Current wording
Net cash flow provided by (used in) operating activities was $30.9 million and $499.2 million for the six months ended June 30, 2024 and 2023, respectively. These amounts primarily include net income (loss), net purchases and sales of money market mutual funds and net purchases and sales of United States Treasury Obligations and affiliated investments. The Fund invests in United States Treasury Obligations, money market mutual funds and T-Bill ETFs (affiliated or otherwise), if any, for margin and/or cash management purposes. While the Fund's performance reflects the appreciation and depreciation of those holdings, the Fund's performance, whether positive or negative, is driven primarily by its strategy of trading futures contracts with the aim of seeking to track the Index.
Previous wording
During the three months ended March 31, 2024, $100.0 million was received from sales and maturing United States Treasury Obligations. During the three months ended March 31, 2023, $1,067.0 million was paid to purchase United States Treasury Obligations and $1,280.0 million was received from sales and maturing United States Treasury Obligations. $324.6 million was received from sales of affiliated investments and $425.2 million was paid to purchase affiliated investments during the three months ended March 31, 2024. $1,462.2 million was received from sales of affiliated investments and $1,180.9 million was paid to purchase affiliated investments during the three months ended March 31, 2023.
Current wording
During the six months ended June 30, 2024, $681.6 million was paid to purchase United States Treasury Obligations and $800.0 million was received from sales and maturing United States Treasury Obligations. During the six months ended June 30, 2023, $1,848.4 million was paid to purchase United States Treasury Obligations and $2,360.0 million was received from sales and maturing United States Treasury Obligations. $1,022.4 million was received from sales of affiliated investments and $1,161.2 million was paid to purchase affiliated investments during the six months ended June 30, 2024. $2,544.2 million was received from sales of affiliated investments and $2,300.1 million was paid to purchase affiliated investments during the six months ended June 30, 2023.
Previous wording
The Fund’s net cash flow provided by (used in) financing activities was $(36.2) million and $(382.4) million during the three months ended March 31, 2024 and 2023, respectively. This included $78.1 million and $61.7 million from Shares purchased by Authorized Participants and $113.7 million and $444.0 million from Shares redeemed by Authorized Participants during the three months ended March 31, 2024 and 2023, respectively. During the three months ended March 31, 2024, distributions paid to Shareholders were $0.6 million. No distributions were paid to Shareholders during the three months ended March 31, 2023.
Current wording
The Fund’s net cash flow provided by (used in) financing activities was $(30.9) million and $(499.2) million during the six months ended June 30, 2024 and 2023, respectively. This included $156.6 million and $176.1 million from Shares purchased by Authorized Participants and $187.0 million and $675.4 million from Shares redeemed by Authorized Participants during the six months ended June 30, 2024 and 2023, respectively. During the six months ended June 30, 2024, distributions paid to Shareholders were $0.6 million. No distributions were paid to Shareholders during the six months ended June 30, 2023.
Previous wording
FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023
Current wording
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
Previous wording
COMPARISON OF MARKET, NAV AND DBIQ OPTIMUM YIELD DIVERSIFIED COMMODITY INDEX ER FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023
Current wording
COMPARISON OF MARKET, NAV AND DBIQ OPTIMUM YIELD DIVERSIFIED COMMODITY INDEX ER FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
Previous wording
This Report covers the three months ended March 31, 2024 and 2023. Past performance of the Fund is not necessarily indicative of future performance.
Current wording
This Report covers the three and six months ended June 30, 2024 and 2023. Past performance of the Fund is not necessarily indicative of future performance.
Previous wording
The section “Summary of the DBIQ-OY Diversified TR™ and Underlying Index Commodity Returns for the Three Months Ended March 31, 2024 and 2023” below provides an overview of the changes in the closing levels of the DBIQ-OY Diversified TR™ by disclosing the change in market value of each underlying component Index Commodity through a “surrogate” (and analogous) index that also reflects 3-month United States Treasury Obligations returns. Please note also that the Fund’s objective is to track the Index (not the DBIQ-OY Diversified TR™), and the Fund does not attempt to outperform or underperform the Index. The Index employs the optimum yield roll method with the objective of mitigating the negative effects of contango, the condition in which distant delivery prices for futures exceed spot prices, and maximizing the positive effects of backwardation, a condition opposite of contango.
Current wording
The section “Summary of the DBIQ-OY Diversified TR™ and Underlying Index Commodity Returns for the Three and Six Months Ended June 30, 2024 and 2023” below provides an overview of the changes in the closing levels of the DBIQ-OY Diversified TR™ by disclosing the change in market value of each underlying component Index Commodity through a “surrogate” (and analogous) index that also reflects 3-month United States Treasury Obligations returns. Please note also that the Fund’s objective is to track the Index (not the DBIQ-OY Diversified TR™), and the Fund does not attempt to outperform or underperform the Index. The Index employs the optimum yield roll method with the objective of mitigating the negative effects of contango, the condition in which distant delivery prices for futures exceed spot prices, and maximizing the positive effects of backwardation, a condition opposite of contango.
Previous wording
For the three months ended March 31, 2024, the NAV of each Share increased from $22.05 per Share to $22.98 per Share. Rising commodity futures contracts prices for Brent Crude Oil, Copper Grade A, Gold, Light Sweet Crude Oil, RBOB Gasoline, Silver, Sugar and Ultra-Low Sulphur Diesel were partially offset by falling commodity prices for Aluminum, Corn, Natural Gas, Soybeans, Wheat and Zinc during the three months ended March 31, 2024, contributing to an overall 3.13% increase in the level of the Index and to a 4.52% increase in the level of the DBIQ–OY Diversified TR™. The total return for the Fund on a NAV basis was +4.22%.
Current wording
For the three months ended June 30, 2024, the NAV of each Share increased from $22.98 per Share to $23.25 per Share. Rising commodity futures contracts prices for Aluminum, Brent Crude Oil, Copper Grade A, Gold, Light Sweet Crude Oil, Natural Gas, RBOB Gasoline, Silver and Zinc were partially offset by falling commodity prices for Corn, Soybeans, Sugar, Ultra-Low Sulphur Diesel and Wheat during the three months ended June 30, 2024, contributing to an overall 0.07% increase in the level of the Index and to a 1.42% increase in the level of the DBIQ–OY Diversified TR™. The total return for the Fund on a NAV basis was +1.17%.
Previous wording
For the three months ended March 31, 2023, the NAV of each Share decreased from $24.65 per Share to $23.76 per Share. Falling commodity futures contracts prices for Brent Crude Oil, Corn, Light Sweet Crude Oil, Natural Gas, RBOB Gasoline, Soybeans, Ultra-Low Sulphur Diesel and Wheat were partially offset by rising commodity prices for Aluminum, Copper Grade A, Gold, Silver, Sugar and Zinc during the three months ended March 31, 2023, contributing to an overall 4.50% decrease in the level of the Index and to a 3.38% decrease in the level of the DBIQ–OY Diversified TR™. The total return for the Fund on a NAV basis was -3.61%.
Current wording
For the three months ended June 30, 2023, the NAV of each Share decreased from $23.76 per Share to $22.72 per Share. Falling commodity futures contracts prices for Aluminum, Brent Crude Oil, Copper Grade A, Corn, Gold, Light Sweet Crude Oil, Natural Gas, RBOB Gasoline, Silver, Ultra-Low Sulphur Diesel, Wheat and Zinc were partially offset by rising commodity prices for Soybeans and Sugar during the three months ended June 30, 2023, contributing to an overall 5.36% decrease in the level of the Index and to a 4.14% decrease in the level of the DBIQ–OY Diversified TR™. The total return for the Fund on a NAV basis was -4.38%.
Previous wording
For the three months ended March 31, 2024, the NYSE Arca market value of each Share increased from $22.06 per Share to $22.97 per Share. The Share price low and high for the three months ended March 31, 2024 and related change from the Share price on December 31, 2023 was as follows: Shares traded at a low of $21.76 per Share (-1.36%) on February 23, 2024, and a high of $22.97 per Share (+4.13%) on March 18, 2024. The total return for the Fund on a market value basis was +4.13%.
Current wording
For the six months ended June 30, 2024, the NYSE Arca market value of each Share increased from $22.06 per Share to $23.25 per Share. The Share price low and high for the six months ended June 30, 2024 and related change from the Share price on December 31, 2023 was as follows: Shares traded at a low of $21.76 per Share (-1.36%) on February 23, 2024, and a high of $23.94 per Share (+8.52%) on May 28, 2024. The total return for the Fund on a market value basis was +5.39%.
Previous wording
Overall, commodities performed positively in the first quarter of 2024 supported by an improving macro backdrop – a resilient US economy and expected Federal Reserve easing boosted investor risk appetite. Energy commodities were the top contributors, supported by rising geopolitical tensions in both the Middle East and Ukraine. Natural gas continued to be the laggard in energy due to high inventories and reduced heating demand. Precious metals, especially gold, performed strongly underpinned by expectations that the Federal Reserve would start easing interest rates imminently, strong central bank demand, robust Asian consumer demand, and increased haven demand from the escalating conflicts. Industrial metals did make a bit of a comeback towards the end of the period as low prices started to feed into margins, forcing supply curtailments, though the impact was still playing out. Grains were the other weak links aside from natural gas, with prices remaining under pressure on ample global supplies and lacking US competitiveness.
Current wording
Overall, commodities performed positively in the first half of 2024, broadly supported by an improving macro backdrop – a resilient US economy and expected Federal Reserve easing boosted investor risk appetite. However, this tailwind turned into somewhat of a headwind in the second quarter with the Federal Reserve sticking to its higher-for-longer rhetoric amid persistent inflation. Sector-wise, energy was the top contributor, supported by rising geopolitical tensions in both the Middle East and Ukraine, and demand optimism ahead of the summer driving season. Natural gas continued to be the laggard in energy due to higher-than-normal inventories and reduced heating demand. However, it did make a very strong comeback in the second quarter on forecasted heatwaves (i.e., higher cooling demand). Precious metals also saw strong performance underpinned by eventual Federal Reserve rate cuts, strong central bank demand, robust Asian consumer demand, and the increased calls for haven assets due to the escalating conflicts. Industrial metals also made a comeback as tight concentrate supplies and low refined metals prices started feeding into profit margins, threatening supply curtailments. Grains were the weak links, with prices remaining under pressure on ample global supplies and well-progressing harvests/plantings.
Previous wording
For the three months ended March 31, 2023, the NYSE Arca market value of each Share decreased from $24.67 per Share to $23.75 per Share. The Share price low and high for the three months ended March 31, 2023 and related change from the Share price on December 31, 2022 was as follows: Shares traded at a low of $22.68 per Share (-8.07%) on March 15, 2023, and a high of $25.16 per Share (+1.99%) on January 23, 2023. The total return for the Fund on a market value basis was -3.73%.
Current wording
For the six months ended June 30, 2023, the NYSE Arca market value of each Share decreased from $24.67 per Share to $22.72 per Share. The Share price low and high for the six months ended June 30, 2023 and related change from the Share price on December 31, 2022 was as follows: Shares traded at a low of $22.06 per Share (-10.58%) on May 31, 2023, and a high of $25.16 per Share (+1.99%) on January 23, 2023. The total return for the Fund on a market value basis was -7.90%.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Returns for the Three Months Ended March 31, 2024 and 2023