Invesco DB Oil Fund

Frequently Asked Questions About DBO

What does DBO invest in?

The Invesco DB Oil Fund (DBO) endeavors to replicate the performance, whether positive or negative, of the DBIQ Optimum Yield Crude Oil Index Excess Return (the Index). Its total return also incorporates net interest income generated from the Fund's primary investments in US Treasury securities and money market instruments, after accounting for its expenses. This Fund provides investors with an efficient and convenient vehicle to gain exposure to commodity futures. The underlying Index is a rules-based benchmark constructed from futures contracts tied to light sweet crude oil (West Texas Intermediate or WTI). It's important to note that direct investment in the Index itself is not possible. Both the Fund and its benchmark undergo annual adjustments and rebalancing every November. Prospective investors should be aware that this Fund is not appropriate for everyone. Its investment strategy is speculative, operating within highly volatile markets. The inherent volatility of futures contracts means that rapid fluctuations in the market prices of the underlying contracts could lead to substantial financial losses. For a complete understanding of these and other potential risks, please consult the "Risk and Other Information" section and the Fund's official Prospectus. Further tax-related compliance information, including qualified notices concerning IRS Section 1446(f) for Publicly Traded Partnerships (PTPs) and the Form 1065 Schedule K-3 FAQ for Invesco DB Funds, is available on our dedicated ETF tax center.

What is the expense ratio of DBO?

Invesco DB Oil Fund (DBO) charges an expense ratio of 0.81%. This is the annual fee deducted from fund assets to cover management and operations.

What is DBO's dividend yield?

DBO's trailing-twelve-month yield is 1.59%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of DBO?

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

What is the credit quality of DBO?

DBO'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 DBO?

Yield to maturity (YTM) is the total return you'd earn from DBO if every bond in the portfolio is held to maturity at the current price. DBO'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.