Invesco DB Commodity Index Tracking Fund

Frequently Asked Questions About DBC

What does DBC invest in?

The Invesco DB Commodity Index Tracking Fund (DBC) aims to replicate the performance, both positive and negative, of the DBIQ Optimum Yield Diversified Commodity Index Excess Return (DBIQ Opt Yield Diversified Comm Index ER or Index). Beyond merely tracking the index, the Fund also incorporates interest income derived primarily from its holdings of U.S. Treasury securities and money market instruments, offset by the Fund's operating expenses. This Fund is designed to provide investors with an accessible and efficient vehicle for gaining exposure to commodity futures. The underlying Index is a systematic, rules-based benchmark comprising futures contracts on fourteen of the world's most actively traded and economically significant physical commodities. Both the Fund and its corresponding Index undergo annual rebalancing and reconstitution each November. It is crucial to note that this Fund may not be appropriate for all investors. Its speculative nature, involving trading within highly volatile commodity markets, presents substantial risk. The inherent volatility of futures contracts means frequent and significant price fluctuations, which could lead to considerable financial losses. For a comprehensive understanding of these and other potential risks, prospective investors should thoroughly review the "Risk and Other Information" section and the Fund's official Prospectus. Information regarding qualified notices for IRS Section 1446(f) Rule concerning Publicly Traded Partnerships (PTPs), as well as FAQs for Form 1065 Schedule K-3 for Invesco DB Funds, is available through our dedicated ETF tax center.

What is the expense ratio of DBC?

Invesco DB Commodity Index Tracking Fund (DBC) charges an expense ratio of 0.89%. This is the annual fee deducted from fund assets to cover management and operations.

What is DBC's dividend yield?

DBC's trailing-twelve-month yield is 2.22%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of DBC?

Effective duration measures DBC's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. DBC's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of DBC?

DBC's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of DBC?

Yield to maturity (YTM) is the total return you'd earn from DBC if every bond in the portfolio is held to maturity at the current price. DBC's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.