What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-08-07 compared with 2025-05-08 · 98 added, 51 removed, 267 unchanged (36% 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.

41 unchanged sentences

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

1 unchanged sentence

Copper-Grade A

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.

65 unchanged sentences

Operating Activities

Net cash flow provided by (used in) operating activities was $(8.9) million and $1.3 million for the three months ended March 31, 2025 and 2024, respectively.

Net cash flow provided by (used in) operating activities was $(2.2) million and $(35.0) 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.

1 unchanged sentence

During the three months ended March 31, 2025, there were no purchases or sales of United States Treasury Obligations.

During the three months ended March 31, 2024, $6.0 million was received from sales and maturing United States Treasury Obligations.

$16.4 million was received from sales of affiliated investments and $13.3 million was paid to purchase affiliated investments during the three months ended March 31, 2025.

$4.6 million was received from sales of affiliated investments and $10.0 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 $12.6 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 $50.0 million was received from sales and maturing United States Treasury Obligations.

During the six months ended June 30, 2024, $74.0 million was paid to purchase United States Treasury Obligations and $57.0 was received from sales and maturing United States Treasury Obligations.

$31.7 million was received from sales of affiliated investments and $72.2 million was paid to purchase affiliated investments during the six months ended June 30, 2025.

$86.0 million was received from sales of affiliated investments and $104.8 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 $4.7 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 $8.9 million and $(1.3) million during the three months ended March 31, 2025 and 2024, respectively.

This included $15.6 million and $3.5 million from Shares purchased by Authorized Participants and $6.6 million and $4.4 million from Shares redeemed by Authorized Participants during the three months ended March 31, 2025 and 2024, respectively.

During the three months ended March 31, 2025 and 2024, distributions paid to Shareholders were $0 and $0.4 million, respectively.

The Fund’s net cash flow provided by (used in) financing activities was $2.2 million and $35.0 million during the six months ended June 30, 2025 and 2024, respectively.

This included $25.1 million and $82.6 million from Shares purchased by Authorized Participants and $22.8 million and $47.2 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 $(0.4) 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-OY Industrial Metals 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 levels 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.

1 unchanged sentence

COMPARISON OF MARKET, NAV AND DBIQ-OY INDUSTRIAL METALS ER

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,

2 unchanged sentences

POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

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.

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.

4 unchanged sentences

Past results of the DBIQ-OY Industrial Metals TR are not necessarily indicative of future changes, positive or negative, in the closing levels of the DBIQ-OY Industrial Metals TR.

The section “Summary of the DBIQ-OY Industrial Metals 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-OY Industrial Metals 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-OY Industrial Metals 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-OY Industrial Metals 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 Industrial Metals TR), and the Fund does not attempt to outperform or underperform the Index.

1 unchanged sentence

Summary of the DBIQ-OY Industrial Metals TR and Underlying Index Commodity

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

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

AGGREGATE RETURNS FOR INDICES IN THE DBIQ-OY INDUSTRIAL METALS TR

Three Months Ended

Six Months Ended

Underlying Index

13 unchanged sentences

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 increased from $18.84 per Share to $19.20 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 $18.56 per Share (-1.49%) on January 3, 2025 and a high of $19.93 per Share (+5.79%) on March 17, 2025.

For the three months ended June 30, 2025, the NYSE Arca market value of each Share increased from $19.20 per Share to $19.35 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 $17.28 per Share (-10.00%) on April 8, 2025 and a high of $19.39 per Share (+0.99%) on June 27, 2025.

The total return for the Fund on a market value basis was +0.78%.

Industrial metals experienced mixed performance in the first quarter of 2025, though the Fund's positive performance was largely attributable to gains in Copper.

Front month Copper prices rallied over 10%, initially supported by Chinese restocking and anticipation of stimulus, followed by tariff angst, leading to a spur of frontloading into the U.S., sending prices in both the U.S.

and London soaring.

From a broader perspective, the performance of base metals was further supported by increased infrastructure and defense spending plans in Europe, a weaker U.S.

dollar, and the anticipation of increased metals demand to rebuild Ukraine and Gaza as peace talks began.

Zinc and Aluminum were both pressured by mounting economic growth concerns amid tariff uncertainties.

For the three months ended March 31, 2024, the NYSE Arca market value of each Share decreased from $18.31 per Share to $17.95 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 $16.80 per Share (-8.25%) on February 9, 2024 and a high of $18.17 per Share (-0.76%) on March 15, 2024.

The Fund’s commodity holdings finished the second quarter of 2025 with a small loss, reflecting a tough but mixed period for industrial metals.

However, interest income from the Fund’s collateral holdings helped the Fund post a gain for the quarter.

April was especially weak, as fresh tariff announcements, economic worries, and market swings led to sharp drops across base metals.

Aluminum and zinc were hit hardest, while copper also fell due to concerns about demand and trade.

Markets improved in May and June, with Aluminum bouncing back as supply tightened, the U.S.

dollar weakened, and geopolitical tensions helped prices.

Copper also recovered, helped by supply issues in Africa and steady demand from China.

Zinc stayed under pressure, as worries about global growth and increased mine production kept prices down, even though there was some improvement late in the quarter.

Losses in April were mostly balanced out by gains in aluminum and copper later, but zinc’s weakness weighed on the Fund’s performance.

For the three months ended June 30, 2024, the NYSE Arca market value of each Share increased from $17.95 per Share to $20.11 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 $18.10 per Share (+0.81%) on April 1, 2024 and a high of $21.65 per Share (+20.58%) on May 24, 2024.

The total return for the Fund on a market value basis was +12.03%.

Industrial metals were mixed in the first quarter of 2024.

Copper managed to lock in gains and aluminum was slightly lower, while Zinc prices continued to plunge.

Copper prices were supported by the severe shortfalls in concentrate supplies and expanded Chinese smelter capacity, leading to plunging treatment and refining charges (i.e., the profit for smelters to refine the metal, and hence forcing cutbacks in refined metal supply).

Nickel prices gained mostly in February and early March as low prices started to feed into its cost curve leading to output cuts.

Iron Ore and Zinc, both heavily linked to China’s property sector, continued to suffer.

Industrial metals saw strong positive performance in the second quarter of 2024.

Zinc was the top performer among the three metals included in the Fund, with front month prices up over 20% as the consequences of tight concentrate supplies and plunging treatment charges rippled through the processing chains.

Copper and aluminum also continued their supply-driven gains through most of May, with copper even experiencing a short squeeze, sending prices to a record high.

However, both retreated on increased profit-taking and hawkish Federal Reserve rhetoric.

This dented broader investor risk appetite which had improved in the first quarter on hopes that the Federal Reserve would start cutting rates imminently.

Adding to the bullish sentiment, the U.S.

and United Kingdom("UK") issued fresh sanctions on Russian copper, aluminum, and nickel in April.

However, physical markets did turn weaker in June as China remained well-supplied in copper and European zinc smelters announced plans to restart.

Fund Share Net Asset Performance

For the three months ended March 31, 2025, the NAV of each Share increased from $18.79 per Share to $19.19 per Share.

Rising commodity futures contract prices for copper were partially offset by falling commodity futures contract prices for aluminum and zinc during the three months March 31, 2025 contributing to an overall 1.27% increase in the level of the Index and to a 2.35% increase in the level of the DBIQ-OY Industrial Metals TR.

For the three months ended June 30, 2025, the NAV of each Share increased from $19.19 per Share to $19.34 per Share.

Rising commodity futures contract prices for aluminum and copper were partially offset by falling commodity futures contract prices for zinc during the three months June 30, 2025, contributing to an overall 0.15% decrease in the level of the Index and to a 0.93% increase in the level of the DBIQ-OY Industrial Metals TR.

The total return for the Fund on a NAV basis was +0.78%.

Net income (loss) for the three months ended March 31, 2025 was $2.1 million, primarily resulting from $1.2 million of income, net realized gain (loss) of $(0.1) million, net change in unrealized gain of $1.2 million and net operating expenses of $0.2 million.

For the three months ended March 31, 2024, the NAV of each Share decreased from $18.28 per Share to $17.94 per Share.

Falling commodity futures contract prices for aluminum and zinc were partially offset by rising commodity futures contract prices for copper during the three months ended March 31, 2024 contributing to an overall 2.98% decrease in the level of the Index and to a 1.69% decrease in the level of the DBIQ-OY Industrial Metals TR.

Net income (loss) for the three months ended June 30, 2025, was $0.0 million, primarily resulting from $1.2 million of income, net realized gain (loss) of $(7.2) million, net change in unrealized gain of $6.1 million and net operating expenses of $0.2 million.

For the three months ended June 30, 2024 the NAV of each Share increased from $17.94 per Share to $20.16 per Share.

Rising commodity futures contract prices for aluminum, zinc and copper during the three months ended June 30, 2024 contributed to an overall 11.20% increase in the level of the Index and to a 12.70% increase in the level of the DBIQ-OY Industrial Metals TR.

The total return for the Fund on a NAV basis was +12.37%.

Net income (loss) for the three months ended March 31, 2024 was $(2.2) million, primarily resulting from $1.6 million of income, net realized gain (loss) of $(0.1) million, net change in unrealized gain (loss) of $(3.5) million and net operating expenses of $0.2 million.

Net income (loss) for the three months ended June 30, 2024 was $14.6 million, primarily resulting from $2.0 million of income, net realized gain (loss) of $6.7 million, net change in unrealized gain (loss) of $6.2 million and net operating expenses of $0.3 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 increased from $18.84 per Share to $19.35 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 $17.28 per Share (-8.28%) on April 8, 2025 and a high of $19.93 per Share (+5.79%) on March 17, 2025.

The total return for the Fund on a market value basis was +2.71%.

Industrial metals had mixed results in the first half of 2025, with the Fund’s performance changing from quarter to quarter.

The year started strong, led by copper gains amid Chinese restocking, hopes for stimulus, and frontloading before tariffs pushed prices up.

Support also came from infrastructure and defense spending in Europe, a weaker U.S.

dollar, and expectations for more metals demand from global rebuilding efforts.

But both zinc and aluminum faced pressure from economic worries and tariff angst.

The second quarter was challenging, with sharp declines in April due to new tariffs and market uncertainty, especially for aluminum and zinc.

Aluminum and copper improved in May and June, but zinc stayed weak.

Overall, early strength in copper was offset by ongoing challenges for zinc and aluminum, leaving the Fund’s year-to-date performance only modestly higher.

For the six months ended June 30, 2024, the NYSE Arca market value of each Share increased from $18.31 per Share to $20.11 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 $16.80 per Share (-8.25%) on February 9, 2024 and a high of $21.65 per Share (+18.25%) on May 21, 2024.

The total return for the Fund on a market value basis was +9.83%.

Industrial metals ended the first half of 2024 in positive territory with all three metals included in the Fund posting gains.

Copper and zinc were supported by shortfalls in concentrate supplies and plunging treatment and refining charges, i.e., the profit for smelters to refine the metal, forcing cutbacks in refined metal supply.

Aluminum was the weakest of the three but still gained significantly on tightening physical fundamentals.

Adding to this, the U.S.

issued fresh sanctions on Russian copper, aluminum, and nickel in April.

Furthermore, an improving macro backdrop, bolstered by expectations for a soft landing in the U.S.

and brighter Chinese outlook, underpinned stronger prices.

However, the sector did retreat sharply through June with Federal Reserve rate cut expectations repeatedly being pushed out and physical markets turning weaker – China remained well-supplied in copper and European zinc smelters announced plans to restart idled capacity.

Fund Share Net Asset Performance

For the six months ended June 30, 2025, the NAV of each Share increased from $18.79 per Share to $19.34 per Share.

Rising commodity futures contract prices for aluminum and copper were partially offset by falling commodity futures contract prices for zinc during the six months ended June 30, 2025 contributing to an overall 1.12% increase in the level of the Index and to a 3.30% increase in the level of the DBIQ-OY Industrial Metals TR.

The total return for the Fund on a NAV basis was +2.93%.

Net income (loss) for the six months ended June 30, 2025 was $2.0 million, primarily resulting from $2.4 million of income, net realized gain (loss) of $(7.3) million, net change in unrealized gain of $7.3 million and net operating expenses of $0.4 million.

For the six months ended June 30, 2024, the NAV of each Share increased from $18.28 per Share to $20.16 per Share.

Rising commodity futures contract prices for aluminum, zinc and copper during the six months ended June 30, 2024 contributing to an overall 7.88% increase in the level of the Index and to a 10.79% increase in the level of the DBIQ-OY Industrial Metals TR.

The total return for the Fund on a NAV basis was +10.29%.

Net income (loss) for the six months ended June 30, 2024 was $12.4 million, primarily resulting from $3.7 million of income, net realized gain (loss) of $6.6 million, net change in unrealized gain (loss) of $2.6 million and net operating expenses of $0.5 million.

Critical Accounting Estimates

22 unchanged sentences

The Fund calculates VaR using the actual historical market movements of the Fund’s net assets.

The following table indicates the trading VaR associated with the Fund’s net assets as of March 31, 2025.

For the Three Months Ended

March 31, 2025

The following table indicates the trading VaR associated with the Fund’s net assets as of June 30, 2025.

For the Six Months Ended

June 30, 2025

Daily Volatility

15 unchanged sentences

Although the Fund purchases and sells shares of T-Bill ETFs on an exchange, it does not establish or liquidate those positions for trading purposes.

QUALITATIVE DISCLOSURES REGARDING PRIMARY TRADING RISK EXPOSURES

The following qualitative disclosures regarding the Fund’s market risk exposures—except for those disclosures that are statements of historical fact—constitute forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act.

QUALITATIVE DISCLOSURES REGARDING PRIMARY TRADING MARKET RISK EXPOSURES

Section 21E of the Exchange Act.

The Fund’s primary market risk exposures are subject to numerous uncertainties, contingencies and risks.

2 unchanged sentences

Investors may lose all or substantially all of their investment in the Fund.

The following were the primary trading risk exposures of the Fund as of March 31, 2025 by Index Commodity:

The following were the primary trading risk exposures of the Fund as of June 30, 2025 by Index Commodity:

The price of aluminum is volatile.

26 unchanged sentences

Under ordinary circumstances, the Managing Owner’s exercise of discretionary power is limited to determining whether the Fund will make a distribution.

Under emergency or extraordinary circumstances, the Managing Owner’s use of its discretionary

powers may increase.

Under emergency or extraordinary circumstances, the Managing Owner’s use of its discretionary powers may increase.

These special circumstances, for example, include the unavailability of the Index or certain natural or man-made disasters.

2 unchanged sentences

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