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Item 2. Management’s Discussion and Analysis

2026-08-07 compared with 2026-05-07 · 95 added, 53 removed, 289 unchanged (34% of the section changed)

88 unchanged sentences

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:

The following table reflects the Fund weights of each Index Commodity or related futures contracts, as applicable, as of June 30, 2026:

Index Commodity

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Primary Nickel

Closing Level as of March 31, 2026:

Closing Level as of June 30, 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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Operating Activities

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.

Net cash flow provided by (used in) operating activities was $(147.4) million and $(2.2) million for the six months ended June 30, 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.

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 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.

During the six months ended June 30, 2026, $151.6 million was received from sales of affiliated investments and $318.8 million was paid to purchase affiliated investments.

$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.

During the six months ended June 30, 2026 and 2025, net deposits to/from the Commodity Broker were $1.1 million and $4.7 million, respectively.

Financing Activities

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.

The Fund’s net cash flow provided by (used in) financing activities was $149.9 million and $2.2 million during the six months ended June 30, 2026 and 2025, respectively.

This included $254.3 million and $25.1 million from Shares purchased by Authorized Participants and $104.4 million and $22.8 million from Shares redeemed by Authorized Participants during the six months ended June 30, 2026 and 2025, respectively.

No distributions were paid to Shareholders during the six months ended June 30, 2026 and 2025, respectively.

Results of Operations

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 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”).

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

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

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

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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, 2026 and 2025.

This Report covers the three and six months ended June 30, 2026 and 2025.

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

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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.

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 and six months ended June 30, 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 Months Ended March 31, 2026 and 2025

Returns for the Three and Six Months Ended June 30, 2026 and 2025

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

Three Months Ended

Six Months Ended

Underlying Index

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DB Copper—Grade A Indices

DB Nickle Indices

DB Nickel 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 MARCH 31, 2026 COMPARED TO THE THREE MONTHS ENDED MARCH 31, 2025

FOR THE THREE MONTHS ENDED JUNE 30, 2026 COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2025

Fund Share Price Performance

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.

For the three months ended June 30, 2026 the NYSE Arca market value of each Share increased from $23.49 per Share to $24.11 per Share.

The Share price low and high for the three months ended June 30, 2026 and related change from the Share price on March 31, 2026 was as follows:

Shares traded at a low of $23.51 per Share (+0.09%) on April 07, 2026 and a high of $26.63 per Share (+13.37%) on June 02, 2026.

The total return for the Fund on a market value basis was +2.64%.

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.

Industrial metals performed positively during the second quarter of 2026, led by strong gains in copper and zinc, which more than offset weakness in aluminum, nickel, and lead.

Copper was the largest contributor to returns, supported by continued investment in electrification, power grid upgrades, and AI-related infrastructure, reinforcing a favorable long-term demand outlook.

The U.S.-Iran conflict added further support by disrupting global sulfur and sulfuric acid markets, raising processing costs and increasing concerns

over potential supply constraints across several base metals.

Aluminum was the largest detractor, pressured by ample supply and lingering concerns over global manufacturing activity, while nickel declined as worries over industrial demand and economic growth outweighed support from tighter Indonesian ore availability.

Progress in U.S.-China trade negotiations also helped improve the demand outlook for industrial metals, contributing to gains in copper and zinc despite elevated geopolitical volatility.

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 08, 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.

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.

Fund Share Net Asset Performance

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.

For the three months ended June 30, 2026, the NAV of each Share increased from $23.45 per Share to $24.08 per Share.

Rising commodity futures contract prices for copper, copper - Grade A and zinc were partially offset by commodity futures contracts for aluminum, lead and nickel during the three months ended June 30, 2026 contributing to an overall 1.98% increase in the level of the Index and to a 2.93% increase in the level of the DBIQ-OY Industrial Metals TR.

The total return for the Fund on a NAV basis was +2.69%.

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.

Net income (loss) for the three months ended June 30, 2026 was $4.6 million, primarily resulting from $3.0 million of income, net realized gain (loss) of $12.8 million, net change in unrealized gain (loss) of $(10.6) million and net operating expenses of $0.6 million.

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

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 (loss) of $6.1 million and net operating expenses of $0.2 million.

FOR THE SIX MONTHS ENDED JUNE 30, 2026 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2025

Fund Share Price Performance

For the six months ended June 30, 2026 the NYSE Arca market value of each Share increased from $22.94 per Share to $24.11 per Share.

The Share price low and high for the six months ended June 30, 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 $26.63 per Share (+16.09%) on June 02, 2026.

The total return for the Fund on a market value basis was +5.10%.

Industrial metals generated positive returns year-to-date through the second quarter of 2026, led by strong gains in copper and zinc, which more than offset weakness in nickel and lead.

After declining in the first quarter amid softening manufacturing data and growth concerns, copper rebounded sharply in the second quarter, supported by continued investment in electrification, power grid upgrades, and AI-related infrastructure, reinforcing a favorable long-term demand outlook.

The U.S.-Iran conflict also supported the complex by disrupting global sulfur and sulfuric acid markets, raising concerns about higher processing costs and potential supply constraints across several base metals.

Progress in U.S.-China trade negotiations further improved sentiment toward global industrial demand.

Aluminum contributed positively to returns as tighter supply conditions earlier in the year supported prices, while zinc benefited from improving manufacturing expectations.

Offsetting some of these gains, nickel and lead detracted from performance, with nickel pressured by concerns over industrial demand and global economic growth despite ongoing supply-side uncertainty.

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 08, 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 front loading 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.

Fund Share Net Asset Performance

For the six months ended June 30, 2026, the NAV of each Share increased from $22.88 per Share to $24.08 per Share.

Rising commodity futures contract prices for aluminum, copper, copper - Grade A and zinc were partially offset by commodity futures contracts for lead and nickel during the six months ended June 30, 2026 contributing to an overall 3.84% increase in the level of the Index and to a 5.74% increase in the level of the DBIQ-OY Industrial Metals TR.

The total return for the Fund on a NAV basis was +5.24%.

Net income (loss) for the six months ended June 30, 2026 was $5.1 million, primarily resulting from $5.3 million of income, net realized gain (loss) of $26.2 million, net change in unrealized gain (loss) of $(25.4) million and net operating expenses of $1.1 million.

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 (loss) of $7.3 million and net operating expenses of $0.4 million.

Critical Accounting Estimates

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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 of 1933 (the “Securities Act”) and Section 21E of the Exchange Act).

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 of 1933 as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (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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Loss is measured as a decline in the fair value of the portfolio as a result of changes in any of the material variables by which fair values are determined.

VaR is measured over a specified holding period (one day) and to a specified level of statistical confidence (99th percentile).

VaR is measured over

a specified holding period (one day) and to a specified level of statistical confidence (99th percentile).

However, the inherent uncertainty in the markets in which the Fund trades and the recurrence in the markets traded by the Fund of market movements far exceeding expectations could result in actual trading or non-trading losses far beyond the indicated VaR or the Fund’s experience to date (i.e., “risk of ruin”).

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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 March 31, 2026.

For the Three Months Ended

March 31, 2026

The following table indicates the trading VaR associated with the Fund’s net assets as of June 30, 2026.

For the Six Months Ended

June 30, 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 March 31, 2026 by Index Commodity:

The following were the primary trading risk exposures of the Fund as of June 30, 2026 by Index Commodity:

The price of aluminum is volatile.

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Demand for zinc is significantly influenced by the level of global industrial economic activity.

The galvanized steel industrial sector is particularly important given that the use of zinc in the manufacture of galvanized steel accounts for approximately 50% of world-wide zinc demand.

The galvanized steel industrial sector is particularly important given that the use of zinc in the manufacture of galvanized steel accounts for

approximately 50% of world-wide zinc demand.

The galvanized steel sector is in turn heavily dependent on the automobile and construction sectors.

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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.

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