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Item 2. Management’s Discussion and Analysis

2025-08-07 compared with 2025-05-08 · 88 added, 46 removed, 202 unchanged (40% of the section changed)

30 unchanged sentences

The Fund may also gain exposure to United States Treasury Obligations through investments in exchange-traded funds (“ETFs”) (affiliated or otherwise) that track indexes that measure the performance of United States Treasury Obligations with a maximum remaining maturity of up to 12 months (“T-Bill ETFs”).

The Fund holds as collateral United States Treasury Obligations, money market mutual funds and T-Bill ETFs (affiliated or otherwise), if any, for margin and/or cash management purposes.

The Fund may hold as collateral 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.

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The composition of the Index may be adjusted in the event that the Index Sponsor is not able to calculate the closing prices of the Index Commodities.

The following table reflects the Fund weights of each Index Commodity or related futures contracts, as applicable, as of March 31, 2025:

The following table reflects the Fund weights of each Index Commodity or related futures contracts, as applicable, as of June 30, 2025:

Index Commodity

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Kansas City Wheat

Closing Level as of March 31, 2025:

Closing Level as of June 30, 2025:

Please see http://www.invesco.com/ETFs with respect to the most recently available weighted composition of the Fund and the composition of the Index.

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Operating Activities

Net cash flow provided by (used in) operating activities was $(56.3) million and $41.2 million for the three months ended March 31, 2025 and 2024, respectively.

Net cash flow provided by (used in) operating activities was $(31.1) million and $94.2 million for the six months ended June 30, 2025 and 2024, 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, affiliated investments and net deposits to/from the Commodity Broker.

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During the three months ended March 31, 2025, $0 was paid to purchase United States Treasury Obligations and $0 was received from sales and maturing United States Treasury Obligations.

During the three months ended March 31, 2024, $0 was paid to purchase United States Treasury Obligations and $25.0 million was received from sales and maturing United States Treasury Obligations.

$299.8 million was received from sales of affiliated investments and $199.6 million was paid to purchase affiliated investments during the three months ended March 31, 2025.

$110.5 million was received from sales of affiliated investments and $204.9 million was paid to purchase affiliated investments during the three months ended March 31, 2024.

During the three months ended March 31, 2025, net deposits to/from the Commodity Broker was $148.4 million.

There were no net deposits to/from the Commodity Broker during the three months ended March 31, 2024.

During the six months ended June 30, 2025, there were no purchases of United States Treasury Obligations and $250.0 million was received from sales and maturing United States Treasury Obligations.

During the six months ended June 30, 2024, $292.1 million was paid to purchase United States Treasury Obligations and $350.0 million was received from sales and maturing United States Treasury Obligations.

$365.9 million was received from sales of affiliated investments and $493.9 million was paid to purchase affiliated investments during the six months ended June 30, 2025.

$477.2 million was received from sales of affiliated investments and $516.9 million was paid to purchase affiliated investments during the six months ended June 30, 2024.

During the six months ended June 30, 2025, net deposits to/from the Commodity Broker was $138.0 million.

There were no net deposits to/from the Commodity Broker during the six months ended June 30, 2024.

Financing Activities

The Fund’s net cash flow provided by (used in) financing activities was $42.8 million and $(46.0) million during the three months ended March 31, 2025 and 2024, respectively.

This included $97.0 million and $12.9 million from Shares purchased by Authorized Participants and $54.2 million and $58.5 million from Shares redeemed by Authorized Participants during the three months ended March 31, 2025 and 2024, respectively.

No distributions were paid to Shareholders during the three months ended March 31, 2025.

During the three months ended March 31, 2024, distributions paid to Shareholders were $0.3 million.

The Fund’s net cash flow provided by (used in) financing activities was $17.7 million and $(99.0) million during the six months ended June 30, 2025 and 2024, respectively.

This included $146.9 million and $86.2 million from Shares purchased by Authorized Participants and $129.3 million and $184.8 million from Shares redeemed by Authorized Participants during the six months ended June 30, 2025 and 2024, respectively.

No distributions were paid to Shareholders during the six months ended June 30, 2025.

During the six months ended June 30, 2024, distributions paid to Shareholders were $0.3 million.

Results of Operations

FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024

The following graphs illustrate the percentage changes in (i) the market price of the Shares (as reflected by the line “Market”), (ii) the Fund’s NAV (as reflected by the line “NAV”), and (iii) the closing levels of the Index (as reflected by the line “DBIQ Diversified Agriculture Index ER”).

Whenever the Treasury Income, Money Market Income and T-Bill ETF Income, if any, earned by the Fund exceeds Fund expenses, the price of the Shares generally exceeds the level of the Index primarily because the Share price reflects Treasury Income, Money Market Income and T-Bill ETF Income, if any, from the Fund’s collateral holdings whereas the Index does not consider such income.

There can be no assurances that the price of the Shares or the Fund’s NAV will exceed the Index levels.

There can be no assurance that the price of the Shares or the Fund’s NAV will exceed the Index levels.

No representation is being made that the Index will or is likely to achieve closing levels consistent with or similar to those set forth herein.

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COMPARISON OF MARKET, NAV AND DBIQ DIVERSIFIED AGRICULTURE INDEX ER TM

FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024

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.

Performance Summary

This Report covers the three months ended March 31, 2025 and 2024.

This Report covers the three and six months ended June 30, 2025 and 2024.

Past performance of the Fund is not necessarily indicative of future performance.

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In turn, the notional amounts of each Index Commodity are broadly in proportion to historic levels of the world’s production and stocks of such Index Commodities.

The DBIQ Diversified Agriculture Index Total Return (the “DBIQ Diversified Agriculture TR”) consists of the Index plus 3-month United States Treasury Obligations returns.

The DBIQ Diversified Agriculture Index Total Return (the “DBIQ Diversified Agriculture TR”) consists of the Index plus 3-month

United States Treasury Obligations returns.

Past results of the Index and the DBIQ Diversified Agriculture TR are not necessarily indicative of future changes, positive or negative.

The section “Summary of the DBIQ Diversified Agriculture TR and Underlying Index Commodity Returns for the Three Months Ended March 31, 2025 and 2024” below provides an overview of the changes in the closing levels of the DBIQ Diversified Agriculture 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.

The section “Summary of the DBIQ Diversified Agriculture TR and Underlying Index Commodity Returns for the Three and Six Months Ended June 30, 2025 and 2024” below provides an overview of the changes in the closing levels of the DBIQ Diversified Agriculture 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 Diversified Agriculture TR) and the Fund does not attempt to outperform or underperform the Index.

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Summary of the DBIQ Diversified Agriculture TR and Underlying Index

Commodity Returns for the Three Months Ended March 31, 2025 and 2024

Commodity Returns for the Three and Six Months Ended June 30, 2025 and 2024

AGGREGATE RETURNS FOR INDICES IN THE DBIQ AGRICULTURE TR

Three Months Ended

Six Months Ended

Underlying Index

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If the Fund’s fees and expenses were to exceed the Fund’s Treasury Income, Money Market Income and T-Bill ETF Income, if any, the aggregate return on an investment in the Fund is expected to underperform the Excess Return Index.

FOR THE THREE MONTHS ENDED MARCH 31, 2025 COMPARED TO THE THREE MONTHS ENDED MARCH 31, 2024

FOR THE THREE MONTHS ENDED JUNE 30, 2025 COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2024

Fund Share Price Performance

For the three months ended March 31, 2025, the NYSE Arca market value of each Share decreased from $26.59 per Share to $26.34 per Share.

The Share price low and high for the three months ended March 31, 2025 and related change from the Share price

on December 31, 2024 was as follows:

Shares traded at a low of $26.07 per Share (-1.96%) on March 3, 2025, and a high of $28.35 per Share (+6.62%) on February 18, 2025.

For the three months ended June 30, 2025, the NYSE Arca market value of each Share decreased from $26.34 per Share to $26.16 per Share.

The Share price low and high for the three months ended June 30, 2025 and related change from the Share price on March 31, 2025 was as follows:

Shares traded at a low of $25.28 per Share (-4.02%) on April 8, 2025, and a high of $27.68 per Share (+5.09%) on May 21, 2025.

The total return for the Fund on a market value basis was -0.68%.

Agricultural commodities performed negatively in the first quarter of 2025 with the largest detractor being Cocoa.

Cocoa was the largest contributor to the sector's positive performance last year, but Cocoa was pressured by a weakening fundamental outlook due to demand concerns sparked by global trade concerns and the International Cocoa Organization’s forecast for the first global surplus in four years for 2024/2025.

These considerations caused front month Cocoa prices to plunge by more than 30%.

On the other hand, positive performance was led by Coffee, Live Cattle, and Sugar.

Coffee rallied nearly 20% year-to-date, spurred by renewed supply concerns as the two largest global Coffee growers, Brazil and Vietnam, faced a severe drought to start the year and persistent adverse weather, respectively.

Cattle and Sugar also rallied on supply-side concerns, with the former receiving an additional boost from strengthening demand, and a weaker U.S.

dollar was a tailwind for commodities overall.

For the three months ended March 31, 2024, the NYSE Arca market value of each Share increased from $20.73 per Share to $24.75 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 $20.52 per Share (-1.01%) on January 8, 2024, and a high of $24.75 per Share (+19.40%) on March 28, 2024.

The Fund ended the second quarter of 2025 with a loss as agricultural markets faced several challenges.

Coffee was the biggest drag on performance, dropping sharply because better weather and bigger harvests in Brazil and Central America led to an improved supply outlook.

Sugar also struggled, as higher production forecasts in India and Brazil meant more supply to the market.

Corn and wheat both fell, mainly due to strong plantings and good weather in the U.S.

Trade and tariff uncertainty also weighed on prices more broadly.

On the positive side, cocoa performed positively, supported by supply shortages and weather concerns in West Africa.

Livestock markets were also a bright spot, with live cattle, feeder cattle, and lean hogs all benefiting from tight U.S.

herds and strong demand, especially as the summer grilling season began.

Soybeans were mostly flat, as good planting was balanced by trade issues and positive changes in biofuel policy.

For the three months ended June 30, 2024, the NYSE Arca market value of each Share decreased from $24.75 per Share to $23.81 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 $23.47 per Share (-5.17%) on May 13, 2024, and a high of $26.53 per Share (+7.19%) on April 24, 2024.

The total return for the Fund on a market value basis was -3.80%.

Agricultural commodities ended the first quarter of 2024 significantly higher though Cocoa was largely the sole driver.

Front month prices skyrocketed over 130%, repeatedly surpassing all-time highs as crop damaging disease and adverse weather in West Africa fueled worries for a global supply shortfall.

The other positive contributors were coffee, cotton, sugar, and livestock commodities, which also faced supply concerns.

Grains, on the other hand, all retreated on ample global supplies and lack of U.S.

Agricultural commodities moved lower in the second quarter of 2024.

The largest detractors for the Fund were Cocoa, Corn, Sugar, and Lean Hogs.

While fundamentals remained supportive, with no end in sight for the shortfalls in West Africa, front month Cocoa prices plunged sharply in May and June on increased profit-taking and demand destruction fears.

For corn, while prices were on an uptrend for most of the quarter on resurfaced supply concerns and strong U.S.

export sales, it plunged through June on reports of ample supplies.

Sugar has been in a consistent decline since its peak late last year, pressured by improving global production prospects in India, Thailand, and Brazil.

The one positive standout was Coffee which saw front month prices gain over 20% in the quarter on ramped up weather concerns in Vietnam.

Fund Share Net Asset Performance

For the three months ended June 30, 2025, the NAV of each Share decreased from $26.33 per Share to $26.20 per Share.

Falling commodity futures contract prices for Coffee, Corn, Cotton, Kansas City Wheat, Sugar and Wheat were partially offset by rising commodity futures contract prices of Cocoa, Feeder Cattle, Lean Hogs, Live Cattle and Soybeans during the three months ended June 30, 2025, contributing to an overall 1.34% decrease in the level of the Index and to a 0.27% decrease in the level of the DBIQ Diversified Agriculture Index TR.

The total return for the Fund on a NAV basis was -0.50%.

Net income (loss) for the three months ended June 30, 2025 was $(5.2) million, primarily resulting from $8.7 million of income, net realized gain (loss) of $(33.8) million, net change in unrealized gain (loss) of $21.7 million and net operating expenses of $1.8 million.

For the three months ended June 30, 2024, the NAV of each Share decreased from $24.76 per Share to $23.92 per Share.

Falling commodity futures contract prices for Cocoa, Corn, Cotton, Lean Hogs, Soybeans, Sugar and Wheat were partially offset by rising commodity futures contract prices of Coffee, Feeder Cattle, Kansas City Wheat and Live Cattle during the three months ended June 30, 2024, contributing to an overall 4.47% decrease in the level of the Index and to a 3.19% decrease in the level of the DBIQ Diversified Agriculture Index TR.

The total return for the Fund on a NAV basis was -3.39%.

Net income (loss) for the three months ended June 30, 2024 was $(26.5) million, primarily resulting from $10.2 million of income, net realized gain (loss) of $81.1 million, net change in unrealized gain (loss) of $(116.2) million and net operating expenses of $1.7 million.

FOR THE SIX MONTHS ENDED JUNE 30, 2025 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2024

Fund Share Price Performance

For the six months ended June 30, 2025, the NYSE Arca market value of each Share decreased from $26.59 per Share to $26.16 per Share.

The Share price low and high for the six months ended June 30, 2025 and related change from the Share price on December 31, 2024 was as follows:

Shares traded at a low of $25.28 per Share (-4.93%) on April 8, 2025, and a high of $28.35 per Share (+6.62%) on February 18, 2025.

The total return for the Fund on a market value basis was -1.62%.

The Fund posted a negative return for the first half of 2025 as agricultural markets experienced large amounts of volatility, mainly from cocoa and coffee.

Cocoa, which hurt performance in the first quarter due to surplus forecasts and weak demand, bounced back in the second quarter as supply shortages and weather issues in West Africa returned.

Coffee, after a strong start in the first quarter from drought worries in Brazil and Vietnam, fell in the second quarter as weather improved and harvests grew.

Sugar also went from an early strength to a later weakness as production forecasts in India and Brazil increased.

Corn and wheat both finished the first half lower, as strong planting and good weather led to expectations of big harvests.

Trade and tariff uncertainty continued to be a challenge for grains.

Livestock markets were steadily positive, with live cattle, feeder cattle, and lean hogs all supported by tight U.S.

herds and strong demand.

For the six months ended June 30, 2024, the NYSE Arca market value of each Share increased from $20.73 per Share to $23.81 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 $20.52 per Share (-1.01%) on January 8, 2024, and a high of $26.53 per Share (+27.99%) on April 24, 2024.

The total return for the Fund on a market value basis was +14.86%.

Agricultural commodities ended the first half of 2024 with strong positive performance, though Cocoa was more or less the sole positive driver.

Front month prices skyrocketed over 180% between the start of the year and its peak in mid-April, repeatedly surpassing all-time highs as crop damaging disease and adverse weather in West Africa fueled worries for a global supply shortfall.

However, prices did ease in the second quarter with increased profit-taking dealing a heavy blow.

The other contributors were Coffee and livestock commodities which also faced supply concerns.

Grains, on the other hand, all retreated on ample global supplies and the lack of U.S.

competitiveness.

While renewed weather concerns did take the market by surprise in April and May, sending wheat prices skyrocketing, the rally was short-lived, and all gains were erased by the end of June.

Fund Share Net Asset Performance

For the three months ended March 31, 2025, the NAV of each Share decreased from $26.60 per Share to $26.33 per Share.

Falling commodity futures contract prices for Cocoa, Corn, Cotton, Lean Hogs and Wheat were partially offset by rising commodity futures contract prices of Coffee, Feeder Cattle, Kansas City Wheat, Live Cattle, Soybeans and Sugar during the three months ended March 31, 2025, contributing to an overall 1.76% decrease in the level of the Index and to a 0.72% decrease in the level of the DBIQ Diversified Agriculture Index TR.

For the six months ended June 30, 2025, the NAV of each Share decreased from $26.60 per Share to $26.20 per Share.

Falling commodity futures contract prices for Cocoa, Coffee, Corn, Cotton, Kansas City Wheat, Sugar and Wheat were partially offset by rising commodity futures contract prices of Feeder Cattle, Lean Hogs, Live Cattle and Soybeans during the six months ended June 30, 2025, contributing to an overall 3.07% decrease in the level of the Index and to a 0.98% decrease in the level of the DBIQ Diversified Agriculture Index TR.

The total return for the Fund on a NAV basis was -1.50%.

Net income (loss) for the three months ended March 31, 2025 was $(11.3) million, primarily resulting from $8.6 million of income, net realized gain (loss) of $83.7 million, net change in unrealized gain (loss) of $(101.8) million and net operating expenses of $1.8 million.

For the three months ended March 31, 2024, the NAV of each Share increased from $20.74 per Share to $24.76 per Share.

Rising commodity futures contract prices for Cocoa, Coffee, Cotton, Feeder Cattle, Lean Hogs, Live Cattle and Sugar were partially offset by falling commodity futures contract prices of Corn, Kansas City Wheat, Soybeans and Wheat during the three months ended March 31, 2024, contributing to an overall 18.16% increase in the level of the Index and to a 19.74% increase in the level of the DBIQ Diversified Agriculture Index TR.

Net income (loss) for the six months ended June 30, 2025 was $(16.4) million, primarily resulting from $17.3 million of income, net realized gain (loss) of $49.9 million, net change in unrealized gain (loss) of $(80.1) million and net operating expenses of $3.5 million.

For the six months ended June 30, 2024, the NAV of each Share increased from $20.74 per Share to $23.92 per Share.

Rising commodity futures contract prices for Cocoa, Coffee, Feeder Cattle, Lean Hogs and Live Cattle, were partially offset by falling commodity futures contract prices of Corn, Cotton, Kansas City Wheat, Soybeans, Sugar and Wheat during the six months ended June 30, 2024, contributing to an overall 12.88% increase in the level of the Index and to a 15.92% increase in the level of the DBIQ Diversified Agriculture Index TR.

The total return for the Fund on a NAV basis was +15.33%.

Net income (loss) for the three months ended March 31, 2024 was $129.0 million, primarily resulting from $9.4 million of income, net realized gain (loss) of $44.4 million, net change in unrealized gain (loss) of $76.7 million and net operating expenses of $1.5 million.

Net income (loss) for the six months ended June 30, 2024 was $102.5 million, primarily resulting from $19.7 million of income, net realized gain (loss) of $125.5 million, net change in unrealized gain (loss) of $(39.5) million and net operating expenses of $3.3 million.

Critical Accounting Estimates

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis