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Item 2. Management’s Discussion and Analysis

2026-05-07 compared with 2025-11-07 · 102 added, 120 removed, 240 unchanged (48% of the section changed)

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There can be no assurance that the forward-looking statements included in this Report will prove to be accurate.

Factors that could cause results to differ from those expressed in the forward-looking statements are subject to a number of risks, uncertainties and other factors, including those described in the “Risk Factors” section of the Fund’s Prospectus and elsewhere in the Prospectus and in other SEC filings by the Fund, such as its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, together with the modified risk factor included in Item 1A of this Report, as well as the following:

Factors that could cause results to differ from those expressed in the forward-looking statements are subject to a number of risks, uncertainties and other factors, including those described in the “Risk Factors” section of the Fund’s Prospectus and elsewhere in the Prospectus and in other Securities and Exchange Commission (the "SEC") filings by the Fund, such as its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as well as the following:

• Risks related to market volatility and fluctuations in the price of assets held by the Fund, including as a result of global trade, macroeconomic events, the imposition of trading limitations or trading halts, and the potential loss of investment;

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• Risks related to the impact of regulatory actions, such as position limits, accountability levels and daily limits;

• Risks and uncertainty related to public health emergencies and other adverse public health developments, geopolitical conflict, acts of terrorism, mass casualty events, social unrest, civil disturbance or disobedience.

• Risks and uncertainty related to public health emergencies and other adverse public health developments, geopolitical conflicts, including armed conflicts, acts of terrorism, mass casualty events, social unrest, civil disturbance or disobedience.

You should not place undue reliance on any forward-looking statements.

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Invesco DB Base Metals Fund (the “Fund”), a separate series of Invesco DB Multi-Sector Commodity Trust (the “Trust”), a Delaware statutory trust organized in five separate series, was formed on August 3, 2006.

The term of the Fund is perpetual (unless terminated earlier in certain circumstances) as provided for in the Fifth Amended and Restated Declaration of Trust and Trust Agreement of the Trust, as amended (the “Trust Agreement”).

The Fund has an unlimited number of shares authorized for issuance.

Invesco Capital Management LLC has served as the managing owner (the “Managing Owner”), commodity pool operator and commodity trading advisor of the Trust and the Fund since February 23, 2015.

The Fund has an unlimited number of common units of beneficial interest (the "Shares") shares authorized for issuance.

Invesco Capital Management LLC has served as the managing owner (the “Managing Owner”), commodity pool operator and commodity trading advisor of the Fund since February 23, 2015.

The Managing Owner is registered with the Commodity Futures Trading Commission (the “CFTC”) as a commodity pool operator and a commodity trading advisor, and it is a member firm of the National Futures Association (“NFA”).

The Fund seeks to track changes, whether positive or negative, in the level of the DBIQ Optimum Yield Industrial Metals Index Excess Return (the “Index”) over time, plus the excess, if any, of the sum of the Fund’s interest income from its holdings of United States Treasury Obligations (“Treasury Income”), dividends from its holdings in money market mutual funds (affiliated or otherwise) (“Money Market Income”) and dividends or distributions of capital gains from its holdings of T-Bill ETFs (as defined below) (“T-Bill ETF Income”) over the expenses of the Fund.

The Index is intended to reflect the economic performance of investing in futures contracts on the base metals sector.

The Fund invests in futures contracts in an attempt to track its Index.

The Index is intended to reflect the change in market value of the base metals sector.

The commodities comprising the Index are aluminum, zinc, and copper—Grade A (each an “Index Commodity”, and collectively, the “Index Commodities”).

Effective November 10, 2025, the commodities comprising the Index are Aluminum, Zinc, Lead, Nickel, Comex Copper and Copper—Grade A (each, an “Index Commodity,” and collectively, the “Index Commodities”).

The Fund may invest directly in United States Treasury Obligations.

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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.

The Fund pursues its investment objective by investing in a portfolio of exchange-traded commodity futures contracts that expire in a specific month and trade on a specific exchange (the “Index Contracts”) in the Index Commodities.

The Index is composed of notional amounts of the Index Commodities.

The Fund also holds United States Treasury Obligations, T-Bill ETFs and cash, if any, for deposit with Morgan Stanley & Co.

The Fund pursues its investment objective by investing in a portfolio of exchange-traded futures on commodities in the base metals sector.

The Index Sponsor selects and weights commodities in the Index on an annual basis based on (i) the value and liquidity of the market for associated commodity futures contracts and (ii) their production volume (in order to factor in the relative importance of the commodity in the global economy).

The Fund also holds United States Treasury Obligations and T-Bill ETFs, if any, for deposit with Morgan Stanley & Co.

LLC, the Fund’s commodity broker (the “Commodity Broker”) as margin, to the extent permissible under CFTC rules and United States Treasury Obligations, cash, money market mutual funds and T-Bill ETFs (affiliated or otherwise), if any, on deposit with The Bank of New York Mellon (the “Custodian”), for cash management purposes.

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The CFTC and certain futures exchanges impose position limits on futures contracts, including on Index Contracts.

As the Fund approaches or reaches position limits with respect to an Index Commodity, the Fund may commence investing in Index Contracts that reference other Index Commodities.

In those circumstances, the Fund may also trade in futures contracts based on commodities other than Index Commodities that the Managing Owner reasonably believes tend to exhibit trading prices that correlate with an Index Contract.

approaches or reaches position limits with respect to an Index Commodity, the Fund may commence investing in Index Contracts that

reference other Index Commodities.

In those circumstances, the Fund may also trade in futures contracts based on commodities other

than Index Commodities that the Managing Owner reasonably believes tend to exhibit trading prices that correlate with an Index

The Managing Owner may determine to invest in other futures contracts if at any time it is impractical, including in scenarios wherein the futures market for an Index Contract is thinly traded, or inefficient to gain full or partial exposure to an Index Commodity through the use of Index Contracts.

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Neither Deutsche Bank nor any other party involved in, or related to, making or compiling the Index has any obligation to take the needs of the Managing Owner or its clients into consideration in determining, composing or calculating the Index.

Neither Deutsche Bank nor any other party involved in, or related to, making or compiling the Index is responsible for or has participated in the determination of the timing of, prices at, quantities or valuation of the Fund.

Neither Deutsche Bank nor any other party involved in, or related to, making or compiling the Index has any obligation or liability in connection with the administration or trading of the Fund.

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The Index Sponsor may from time to time subcontract the provision of the calculation and other services described below to one or more third parties.

The Index is composed of notional amounts of each of the underlying Index Commodities.

The notional amount of each Index Commodity included in the Index is intended to reflect the changes in market value of each such Index Commodity within the Index.

The closing level of the Index is calculated on each business day by the Index Sponsor based on the closing price of the commodity futures contracts for each of the Index Commodities and the notional amount of such Index Commodity.

The Index is rebalanced annually in November to ensure that each of the Index Commodities is weighted in the same proportion that such Index Commodities were weighted on September 3, 1997.

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 September 30, 2025:

The Index is intended to reflect the economic performance of investing in futures contracts on the base metals sector.

The Fund pursues its investment objective by investing in a portfolio of exchange-traded futures on commodities in the base metals sector.

Commodity futures quoted in U.S.

Dollars and listed on major U.S.

and European exchanges are eligible for inclusion in the Index.

Eligible commodities are selected based on their Three-Year Total Dollar Volume Average (i.e., commodities are initially screened for inclusion based on their relative three-year “Total Dollar Volume” traded, which is calculated by multiplying the total volume of futures traded during the last one-year period by the average close price of the front month contract on each month end during that one-year period).

Each commodity’s three-year Total Dollar Volume traded is calculated in proportion to the three-year Total Dollar Volume traded of all commodities within its sector to determine its initial sector liquidity rate.

A commodity with a proportionate weight of less than 2% (or 1.5% for a commodity included at the last rebalance) within its sector is excluded from the Index.

Each remaining commodity’s three-year Total Dollar Volume traded is calculated in proportion to the three-year Total Dollar Volume traded of all eligible commodities (“Filtered Commodity Weight”).

Commodity weights in the Index are determined by the Parent Index.

The Parent Index determines production weights for each eligible commodity based on the total dollar amount of the commodity produced within the year in proportion to the sum of the production dollar amounts within the industrial metals sector (“Production Weights”).

The weight of each commodity in the Index is generally based on the average of the Filtered Commodity Weight and the Production Weight, subject to the subject to the requirement that each commodity must have an allocation within the Index of no less than 5%.

The Index is rebalanced annually on the sixth business day in November.

However, during periods of heightened volatility or when commodity prices experience significant movements, the commodities weights within the Index may be reset or reduced based on the weight implemented at the previous annual rebalance.

Effective November 10, 2025, the Index comprised the following commodities:

Aluminum, Zinc, Lead, Nickel, Comex Copper and Copper—Grade A.

The following table reflects the Fund weights of each Index Commodity or related futures contracts, as applicable, as of March 31, 2026:

Index Commodity

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Copper-Grade A

Closing Level as of September 30, 2025:

Primary Nickel

Closing Level as of March 31, 2026:

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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The day on which a redemption order is settled is the redemption order settlement date.

As provided below, the redemption order settlement date may occur up to one business day after the redemption order date.

As provided below, the redemption order settlement date may occur up to one business day after the

redemption order date.

Redemption orders are irrevocable.

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As of the date of this Report, each of ABN AMRO Clearing Chicago LLC, Bank of America Securities, BMO Capital Markets Corp., BNP Paribas Securities Corp., BofA Securities, Inc., Cantor Fitzgerald & Co., Citadel Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Goldman Sachs Execution & Clearing LP, Interactive Brokers LLC, Jane Street Capital LLC, Jefferies LLC, JP Morgan Securities Inc., Morgan Stanley & Co.

LLC, Nomura Securities International Inc., RBC Capital Markets LLC, SG Americas Securities LLC, UBS Securities LLC, Virtu Americas LLC and Virtu Financial Capital Markets LLC has executed a Participant Agreement and are the only Authorized Participants.

LLC, Nomura Securities International Inc., RBC Capital Markets LLC, SG Americas Securities LLC, UBS Securities LLC, and Virtu Americas LLC has executed a Participant Agreement and are the only Authorized Participants.

Operating Activities

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.

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

Net cash flow provided by (used in) operating activities was $(94.7) million and $(8.9) million for the three months ended March 31, 2026 and 2025, 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.

The Fund invests in United States Treasury Obligations, money market mutual funds, T-Bill ETFs (affiliated or otherwise) and cash, if any, or maintains excess deposits with brokers for margin and/or cash management purposes only.

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.

During the three months ended March 31, 2026, $50.4 million was received from sales of affiliated investments and $167.3 million was paid to purchase affiliated investments.

$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.

During the three months ended March 31, 2026 and 2025, net deposits to/from the Commodity Broker were $25.5 million and $12.6 million, respectively.

Financing Activities

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.

The Fund’s net cash flow provided by (used in) financing activities was $91.3 million and $8.9 million during the three months ended March 31, 2026 and 2025, respectively.

This included $140.8 million and $15.6 million from Shares purchased by Authorized Participants and $49.5 million and $6.6 million from Shares redeemed by Authorized Participants during the three months ended March 31, 2026 and 2025, respectively.

No distributions were paid to Shareholders during the three months ended March 31, 2026 and 2025, respectively.

Results of Operations

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”).

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.

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

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 level 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 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 assurance that the price of the Shares or the Fund’s NAV will exceed the Index levels.

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Similarly, no representation is being made that the Fund will generate profits or losses similar to the Fund’s past performance or changes in the Index closing levels.

Effective November 10, 2025, the Index methodology underwent a change.

Performance information included herein prior to November 10, 2025 may have differed had the revised methodology been in place.

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

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,

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.

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

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 nine months ended September 30, 2025 and 2024.

This Report covers the three months ended March 31, 2026 and 2025.

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

The Index is intended to reflect the change in market value of the Index Commodities.

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.

Past Index results are not necessarily indicative of future changes, positive or negative, in the Index closing levels.

The DBIQ Optimum Yield Industrial Metals Index Total Return (the “DBIQ-OY Industrial Metals TR”) consists of the same components as the Index plus 3-month United States Treasury Obligations returns.

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 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.

The Index is intended to reflect the changes in market value, positive or negative, of the Index Commodities.

The Index is intended to reflect the economic performance of investing in futures contracts on the base metals sector.

The DBIQ Optimum Yield Industrial Metals Index Total Return (the “DBIQ-OY Industrial Metals TR”) consists of the Index plus 3-month United States Treasury Obligations returns.

Past results of the Index and the DBIQ-OY Industrial Metals TR are not necessarily indicative of

future changes, positive or negative.

The section “Summary of the DBIQ-OY Industrial Metals TR and Underlying Index Commodity Returns for the three months ended March 31, 2026 and 2025” below provides an overview of the changes in the closing level of DBIQ-OY Industrial Metals TR by disclosing the change in market value of each underlying component Index Commodity through a “surrogate” (and analogous) index plus 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 Nine Months Ended September 30, 2025 and 2024

Returns for the Three Months Ended March 31, 2026 and 2025

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

Three Months Ended

Nine Months Ended

September 30,

Underlying Index

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DB Copper—Grade A Indices

DB Nickle Indices

DB Zinc Indices

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

Fund Share Price Performance

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 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 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 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 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 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

FOR THE THREE MONTHS ENDED MARCH 31, 2026 COMPARED TO THE THREE MONTHS ENDED MARCH 31, 2025

Fund Share Price Performance

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.

For the three months ended March 31, 2026 the NYSE Arca market value of each Share increased from $22.94 per Share to $23.49 per Share.

The Share price low and high for the three months ended March 31, 2026 and related change from the Share price

on December 31, 2025 was as follows:

Shares traded at a low of $22.35 per Share (-2.57%) on March 20, 2026 and a high of $25.08 per Share (+9.33%) on January 29, 2026.

The total return for the Fund on a market value basis was +2.40%.

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.

Industrial metals delivered mixed but generally positive performance in the first quarter of 2026, as markets balanced near‑term growth concerns against longer‑term demand expectations and rising geopolitical risk.

Copper experienced a pullback during the quarter, as softening global manufacturing data and intermittent demand concerns weighed on prices despite continued structural support from electrification and infrastructure‑related demand.

Aluminum and nickel contributed positively amid tightening supply conditions, while zinc and lead were periodically pressured by uneven industrial activity.

Ongoing geopolitical tensions with Iran and intermittent threats to shipping through the Strait of Hormuz added volatility across risk assets but also reinforced the strategic importance of industrial metals within global supply chains.

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 03, 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 +1.91%.

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.

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

Adding to this, the U.S.

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 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.

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.

Fund Share Net Asset Performance

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.

For the three months ended March 31, 2026, the NAV of each Share increased from $22.88 per Share to $23.45 per Share.

Rising commodity futures contract prices for Aluminum, Copper - Grade A, Nickel and Zinc were partially offset by commodity futures contracts for Copper and Lead during the the three months ended March 31, 2026 contributing to an overall 1.82% increase in the level of the Index and to a 2.74% increase in the level of the DBIQ-OY Industrial Metals TR.

The total return for the Fund on a NAV basis was +2.49%.

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.

Net income (loss) for the three months ended March 31, 2026 was $0.5 million, primarily resulting from $2.3 million of income, net realized gain (loss) of $13.5 million, net change in unrealized gain (loss) of $(14.8) million and net operating expenses of $0.5 million.

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 ended 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.

The total return for the Fund on a NAV basis was +2.13%.

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.

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 (loss) of $1.2 million and net operating expenses of $0.2 million.

Critical Accounting Estimates

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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, as filed with the SEC on February 26, 2025.

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 Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates on Form 10-K for the year ended December 31, 2025, as filed with the SEC on March 2, 2026.

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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Quantitative Forward-Looking Statements

The following quantitative disclosures regarding the Fund’s market risk exposures contain “forward-looking statements” within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act and Section 21E of the Exchange Act).

All quantitative disclosures in this section are deemed to be forward-looking statements for purposes of the safe harbor, except for statements of historical fact (such as the U.S.

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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 September 30, 2025.

For the Nine Months Ended

September 30, 2025

The following table indicates the trading VaR associated with the Fund’s net assets as of March 31, 2026.

For the Three Months Ended

March 31, 2026

Daily Volatility

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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 September 30, 2025 by Index Commodity:

The following were the primary trading risk exposures of the Fund as of March 31, 2026 by Index Commodity:

The price of aluminum is volatile.

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In previous years, copper supply has been affected by strikes, financial problems, political turmoil and terrorist activity.

The price of lead is volatile.

The price movement of lead may be influenced by a variety of factors, including demand and global industrial production trends, demand for automotive batteries and other lead-based products, technological developments affecting battery chemistry or recycling rates, changes in fuel and power costs, environmental and health regulations related to lead mining, smelting, and use, labor costs, shortages or strikes, civil unrest and restrictions or regulations imposed by government agencies or other changes in the regulatory environment.

Because lead is often produced as a byproduct of mining other metals (such as zinc or silver), changes in those industries can indirectly affect the price of lead.

The price of nickel is volatile.

The price movement of nickel may be influenced by a variety of factors, including demand, mine commissioning, the accuracy of mineral resources, mine planning and scheduling, the accuracy of ore grades, ground conditions and mine stability, ore characteristics, the accuracy of the estimated rates and costs of mining, ore haulage, barging and shipping, floods, rockslides and earthquakes;

changes in fuel and power costs and potential fuel and power shortages;

shortages of and cost of supplies, labor costs, shortages or strikes, civil unrest and restrictions or regulations imposed by government agencies or other changes in the regulatory environment.

QUALITATIVE DISCLOSURES REGARDING NON-TRADING MARKET RISK EXPOSURE

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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.

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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