What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-11-07 compared with 2025-08-07 · 76 added, 81 removed, 284 unchanged (36% of the section changed)

74 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 June 30, 2025:

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

Index Commodity

1 unchanged sentence

Copper-Grade A

Closing Level as of June 30, 2025:

Closing Level as of September 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.

48 unchanged sentences

In the normal course of its business, the Fund is a party to financial instruments with off-balance sheet risk.

“off-balance sheet risk” refers to an unrecorded potential liability that, even though it does not appear on the balance sheet, may result in a future obligation or loss.

The term “off-balance sheet risk” refers to an unrecorded potential liability that, even though it does not appear on the balance sheet, may result in a future obligation or loss.

The financial instruments used by the Fund are commodity futures, the values of which are based upon an underlying asset and generally represent future commitments which have a reasonable possibility to be settled in cash or through physical delivery.

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Operating Activities

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.

Net cash flow provided by (used in) operating activities was $(4.3) million and $9.4 million for the nine months ended September 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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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.

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.

During the nine months ended September 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 nine months ended September 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.

$41.6 million was received from sales of affiliated investments and $84.9 million was paid to purchase affiliated investments during the nine months ended September 30, 2025.

$152.6 million was received from sales of affiliated investments and $127.6 million was paid to purchase affiliated investments during the nine months ended September 30, 2024.

During the nine months ended September 30, 2025, net deposits to/from the Commodity Broker was $7.5 million.

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

Financing Activities

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.

The Fund’s net cash flow provided by (used in) financing activities was $4.3 million and $(9.4) million during the nine months ended September 30, 2025 and 2024, respectively.

This included $38.8 million and $91.2 million from Shares purchased by Authorized Participants and $34.5 million and $100.2 million from Shares redeemed by Authorized Participants during the nine months ended September 30, 2025 and 2024, respectively.

No distributions were paid to shareholders during the nine months ended September 30, 2025.

During the nine months ended September 30, 2024, distributions paid to Shareholders were $(0.4) million.

Results of Operations

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

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 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”).

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

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

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR INDEX LEVELS AND CHANGES,

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Performance Summary

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

This Report covers the three and nine months ended September 30, 2025 and 2024.

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

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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 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.

The section “Summary of the DBIQ-OY Industrial Metals TR and Underlying Index Commodity Returns for the Three and Nine Months Ended September 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.

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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

Returns for the Three and Nine Months Ended September 30, 2025 and 2024

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

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

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

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

Fund Share Price Performance

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.

For the three months ended September 30, 2025, the NYSE Arca market value of each Share increased from $19.35 per Share to $20.55 per Share.

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

Shares traded at a low of $19.05 per Share (-1.55%) on July 07, 2025 and a high of $20.57 per Share (+6.30%) on September 29, 2025.

The total return for the Fund on a market value basis was +6.20%.

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 Fund delivered positive returns in the third quarter of 2025, with monetary, fiscal, and fundamental factors supporting the move higher across the base metals complex.

Continued U.S.

dollar weakness and demand optimism bolstered by the Federal Reserve's easing and plans under the One Big Beautiful Bill Act (OBBBA) to increase defense spending were also supporting factors.

While Zinc was the largest contributor to performance, gaining on major mine disruptions, Copper dominated news headlines during the third quarter.

Copper prices benefited from a supply squeeze on the London Metal Exchange, after efforts to front run tariffs led to a flood of supplies into the U.S., in turn depleting stockpiles in London.

While prices fell again after news that refined copper would be excluded from the August 1 st tariffs, they broke out even higher due to renewed supply concerns in September.

Investments in artificial intelligence (AI) data centers and electric vehicles also remained a tailwind for copper.

For the three months ended September 30, 2024, the NYSE Arca market value of each Share increased from $20.11 per Share to $20.80 per Share.

The Share price low and high for the three months ended September 30, 2024, and related change from the Share price on June 30, 2024 was as follows:

Shares traded at a low of $18.09 per Share (-10.07%) on August 07, 2024 and a high of $20.99 per Share (+4.35%) on September 26, 2024.

The total return for the Fund on a market value basis was +3.43%.

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.

Industrial metals performed positively in the third quarter of 2024.

While China’s stalled economy continued to paint a more pessimistic backdrop, anticipation leading into the first Federal Reserve interest rate cut and China’s optimistic stimulus announcement provided a boost for the complex to end the quarter.

The kickoff of the Federal Reserve's easing of interest rates and the surprise hike in Japanese rates also weighed on the US dollar.

Commodity-wise, zinc was the strongest performer supported by persisting concentrate supply tightness.

Fund Share Net Asset Performance

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.

For the three months ended September 30, 2025, the NAV of each Share increased from $19.34 per Share to $20.48 per Share.

Rising commodity futures contract prices for aluminum, copper and zinc during the three months September 30, 2025 contributed to an overall 5.06% increase in the level of the Index and to a 6.17% increase in the level of the DBIQ-OY Industrial Metals TR.

The total return for the Fund on a NAV basis was +5.89%.

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.

Net income (loss) for the three months ended September 30, 2025, was $6.9 million, primarily resulting from $1.2 million of income, net realized gain (loss) of $2.5 million, net change in unrealized gain of $3.4 million and net operating expenses of $0.2 million.

For the three months ended September 30, 2024 the NAV of each Share increased from $20.16 per Share to $20.81 per Share.

Rising commodity futures contract prices for aluminum, zinc and copper during the three months ended September 30, 2024 contributed to an overall 2.04% increase in the level of the Index and to a 3.40% increase in the level of the DBIQ-OY Industrial Metals TR.

The total return for the Fund on a NAV basis was +3.22%.

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

Net income (loss) for the three months ended September 30, 2024 was $2.0 million, primarily resulting from $1.7 million of income, net realized gain (loss) of $0.2 million, net change in unrealized gain (loss) of $0.4 million and net operating expenses of $0.3 million.

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 COMPARED TO THE NINE MONTHS ENDED SEPTEMBER 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.

For the nine months ended September 30, 2025, the NYSE Arca market value of each Share increased from $18.84 per Share to $20.55 per Share.

The Share price low and high for the nine months ended September 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 08, 2025 and a high of $20.57 per Share (+9.18%) on September 29, 2025.

The total return for the Fund on a market value basis was +9.08%.

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:

The Fund delivered positive returns in the first three quarters of 2025.

Copper was the strongest performer, bolstered by heavy tariff-driven frontloading into the U.S., a weaker U.S.

dollar, and mine disruptions in Chile and Indonesia in the third quarter.

Copper demand also increased due to higher global spending plans across defense, energy, and technology.

These themes supported base metals sentiment while gradually recovering industrial activity and a resilient global economy boosted demand outlooks.

Zinc posted a loss, pressured by near-term oversupply in China as production capacity grew amid weak domestic demand.

Zinc is primarily used to galvanize or cover steel used in construction and manufacturing sectors, which have continued to lag in China.

Aluminum also gained on supply shortage concerns, particularly due to China’s production caps.

For the nine months ended September 30, 2024, the NYSE Arca market value of each Share increased from $18.31 per Share to $20.80 per Share.

The Share price low and high for the nine months ended September 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 09, 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 +13.60%.

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

Industrial metals ended the first three quarters 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.

1 unchanged sentence

Adding to this, the U.S.

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

and United Kingdom 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.

and brighter Chinese outlook, underpinned stronger prices especially in the third quarter.

The kickoff of the Federal Reserve's easing cycle and China’s surprise stimulus in September marked a key shift in sentiment.

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.

For the nine months ended September 30, 2025, the NAV of each Share increased from $18.79 per Share to $20.48 per Share.

Rising commodity futures contract prices for aluminum, zinc and copper during the nine months ended September 30, 2025 contributed to an overall 6.24% increase in the level of the Index and to a 9.67% increase in the level of the DBIQ-OY Industrial Metals TR.

The total return for the Fund on a NAV basis was +8.99%.

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.

Net income (loss) for the nine months ended September 30, 2025 was $9.0 million, primarily resulting from $3.7 million of income, net realized gain (loss) of $(4.8) million, net change in unrealized gain of $10.7 million and net operating expenses of $0.6 million.

For the nine months ended September 30, 2024, the NAV of each Share increased from $18.28 per Share to $20.81 per Share.

Rising commodity futures contract prices for aluminum, zinc and copper during the nine months ended September 30, 2024 contributed to an overall 10.09% increase in the level of the Index and to a 14.56% increase in the level of the DBIQ-OY Industrial Metals TR.

The total return for the Fund on a NAV basis was +13.84%.

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.

Net income (loss) for the nine months ended September 30, 2024 was $14.4 million, primarily resulting from $5.4 million of income, net realized gain (loss) of $6.8 million, net change in unrealized gain (loss) of $3.0 million and net operating expenses of $0.8 million.

Critical Accounting Estimates

2 unchanged sentences

These estimates and assumptions affect the Fund’s application of accounting policies.

In addition, please refer to Note 2 to the financial statements of the Fund for further discussion of the Fund’s accounting policies and Item 7 – Management’s Discussions and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates on Form 10-K for the year ended December 31, 2024.

There were no material estimates, which involve a significant level of estimation uncertainty and had or are reasonably likely to have had a material impact on the Fund's financial condition, used in the preparation of these financial statements.

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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 June 30, 2025.

For the Six Months Ended

June 30, 2025

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

For the Nine Months Ended

September 30, 2025

Daily Volatility

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QUALITATIVE DISCLOSURES REGARDING PRIMARY TRADING MARKET 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.

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 June 30, 2025 by Index Commodity:

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

The price of aluminum is volatile.

31 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