What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2023-11-08 compared with 2023-08-04 · 131 added, 96 removed, 863 unchanged (21% of the section changed)

2 unchanged sentences

Statements of Financial Condition

June 30, 2023 and December 31, 2022

September 30, 2023 and December 31, 2022

September 30,

United States Treasury Obligations, at value (cost $ 67,510,670 and $ 137,565,846 , respectively)

4 unchanged sentences

Dividends from affiliates

Other investments:

Variation margin payable - Commodity Futures Contracts

Fund shares reacquired

14 unchanged sentences

Schedule of Investments

June 30, 2023

September 30, 2023

Percentage of

2 unchanged sentences

United States Treasury Obligations (a)

Treasury Bills, 4.780 % due July 6, 2023

Treasury Bills, 5.220 % due September 7, 2023

Treasury Bills, 5.280 % due October 5, 2023

Treasury Bills, 5.315 % due December 7, 2023

Treasury Bills, 5.300 % due March 7, 2024

Total United States Treasury Obligations (cost $ 67,510,670 )

12 unchanged sentences

The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd.

(d) The rate shown is the 7-day SEC standardized yield as of June 30, 2023 .

(d) The rate shown is the 7-day SEC standardized yield as of September 30, 2023 .

Open Commodity Futures Contracts

4 unchanged sentences

NYMEX WTI Crude

December - 2023

January - 2024

(e) Unrealized Appreciation (Depreciation) and Value are presented above, net by contract.

36 unchanged sentences

Statements of Income and Expenses

For the Three and Six Months Ended June 30, 2023 and 2022

For the Three and Nine Months Ended September 30, 2023 and 2022

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Interest Income

10 unchanged sentences

United States Treasury Obligations

Affiliated Investments

Commodity Futures Contracts

4 unchanged sentences

Commodity Futures Contracts

( 102,841,696

Net Change in Unrealized Gain (Loss)

( 102,690,984

Net Realized and Net Change in Unrealized Gain (Loss)

5 unchanged sentences

Statement of Changes in Shareholders’

For the Three Months Ended June 30, 2023

For the Three Months Ended September 30, 2023

General Shares

Shareholders'

Balance at March 31, 2023

Balance at June 30, 2023

Purchases of Shares

11 unchanged sentences

Net Change in Shareholders' Equity

Balance at June 30, 2023

Balance at September 30, 2023

See accompanying Notes to Unaudited Financial Statements which are an integral part of the financial statements.

1 unchanged sentence

Statement of Changes in Shareholders’

For the Three Months Ended June 30, 2022

For the Three Months Ended September 30, 2022

General Shares

Shareholders'

Balance at March 31, 2022

Balance at June 30, 2022

Purchases of Shares

Redemption of Shares

( 106,932,157

Net Increase (Decrease) due to Share Transactions

( 100,560,058

Net Income (Loss)

6 unchanged sentences

Investments and Commodity Futures Contracts

( 102,690,849

( 102,690,984

Net Income (Loss)

Net Change in Shareholders' Equity

Balance at June 30, 2022

( 172,930,454

( 172,930,576

Balance at September 30, 2022

See accompanying Notes to Unaudited Financial Statements which are an integral part of the financial statements.

1 unchanged sentence

Statement of Changes in Shareholders’

For the Six Months Ended June 30, 2023

For the Nine Months Ended September 30, 2023

General Shares

3 unchanged sentences

Redemption of Shares

( 154,313,102

Net Increase (Decrease) due to Share Transactions

9 unchanged sentences

Net Change in Shareholders' Equity

Balance at June 30, 2023

Balance at September 30, 2023

See accompanying Notes to Unaudited Financial Statements which are an integral part of the financial statements.

1 unchanged sentence

Statement of Changes in Shareholders’

For the Six Months Ended June 30, 2022

For the Nine Months Ended September 30, 2022

General Shares

6 unchanged sentences

Net Increase (Decrease) due to Share Transactions

( 173,784,738

Net Income (Loss)

8 unchanged sentences

Net Change in Shareholders' Equity

Balance at June 30, 2022

Balance at September 30, 2022

See accompanying Notes to Unaudited Financial Statements which are an integral part of the financial statements.

1 unchanged sentence

Statements of Cash Flows

For the Six Months Ended June 30, 2023 and 2022

Six Months Ended

For the Nine Months Ended September 30, 2023 and 2022

Nine Months Ended

September 30,

Cash flows from operating activities:

9 unchanged sentences

Proceeds from affiliated investments sold

1,170,677,154

Net accretion of discount on United States Treasury Obligations

13 unchanged sentences

( 147,221,037

( 241,994,972

Net cash provided by (used in) financing activities

( 173,784,738

Net change in cash

6 unchanged sentences

Notes to Unaudited F inancial Statements

June 30, 2023

September 30, 2023

Note 1 - Organization

21 unchanged sentences

(the “NYSE Arca”).

This Quarterly Report (the “Report”) covers the three and six months ended June 30, 2023 and 2022.

This Quarterly Report (the “Report”) covers the three and nine months ended September 30, 2023 and 2022.

The accompanying unaudited financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.

39 unchanged sentences

Distributions (other than redemption of units) may be made at the sole discretion of the Managing Owner on a pro rata basis in accordance with the respective capital balances of the shareholders.

No distributions were paid for the three and six months ended June 30, 2023 and 2022 .

No distributions were paid for the three and nine months ended September 30, 2023 and 2022 .

Routine Operational, Administrative and Other Ordinary Expenses

6 unchanged sentences

Non-recurring and unusual fees and expenses, by their nature, are unpredictable in terms of timing and amount.

For the three and six months ended June 30, 2023 and 2022 , the Fund did not incur such expenses.

For the three and nine months ended September 30, 2023 and 2022 , the Fund did not incur such expenses.

Brokerage Commissions and Fees

2 unchanged sentences

The Commodity Broker’s brokerage commissions and trading fees are determined on a contract-by-contract basis.

On average, total charges paid to the Commodity Broker, as applicable were less than $ 6.00 and $ 6.00 per round-turn trade during the three and six months ended June 30, 2023 , respectively.

On average, total charges paid to the Commodity Broker, as applicable were less than $ 6.00 and $ 6.00 per round-turn trade during the three and six months ended June 30, 2022 , respectively.

On average, total charges paid to the Commodity Broker, as applicable were less than $ 6.00 and $ 6.00 per round-turn trade during the three and nine months ended September 30, 2023 , respectively.

On average, total charges paid to the Commodity Broker, as applicable were less than $ 6.00 and $ 6.00 per round-turn trade during the three and nine months ended September 30, 2022 , respectively.

The Fund is classified as a partnership for U.S.

45 unchanged sentences

The Managing Owner may terminate this fee waiver on 60 days’

The Managing Owner waived fees of $ 38,260 and $ 75,730 for the three and six months ended June 30, 2023 , respectively.

The Managing Owner waived fees of $ 81,410 and $ 94,095 for the three and six months ended June 30, 2022, respectively.

The Managing Owner waived fees of $ 45,256 and $ 120,986 for the three and nine months ended September 30, 2023 , respectively.

The Managing Owner waived fees of $ 45,581 and $ 139,676 for the three and nine months ended September 30, 2022, respectively.

The Distributor

31 unchanged sentences

The Fund defines cash as cash held by the Custodian.

There were no other cash equivalents held by the Fund as of June 30, 2023 and December 31, 2022.

There were no other cash equivalents held by the Fund as of September 30, 2023 and December 31, 2022.

The Fund considers investments in money market funds to be investments in securities and, accordingly, includes them in its Schedule of Investments.

27 unchanged sentences

Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

The following is a summary of the tiered valuation input levels as of June 30, 2023:

The following is a summary of the tiered valuation input levels as of September 30, 2023:

Investments in Securities

20 unchanged sentences

The Fair Value of Derivative Instruments is as follows:

June 30, 2023

September 30, 2023

December 31, 2022

3 unchanged sentences

(a) Includes cumulative appreciation (depreciation) of commodity futures contracts.

Only the current day’s variation margin receivable (payable) is reported in the June 30, 2023 and December 31, 2022 Statements of Financial Condition.

Only the current day’s variation margin receivable (payable) is reported in the September 30, 2023 and December 31, 2022 Statements of Financial Condition.

The Effect of Derivative Instruments on the Statements of Income and Expenses is as follows:

1 unchanged sentence

Location of Gain (Loss) on Derivatives

September 30,

Risk Exposure/Derivative Type

4 unchanged sentences

Net Change in Unrealized Gain (Loss)

For the Six Months Ended

( 102,841,696

For the Nine Months Ended

Location of Gain (Loss) on Derivatives

September 30,

Risk Exposure/Derivative Type

6 unchanged sentences

For the Three Months Ended

For the Six Months Ended

For the Nine Months Ended

September 30,

Average Notional Value

9 unchanged sentences

The Invesco Government & Agency Portfolio and the Fund are advised by investment advisers under common control of Invesco Ltd., and therefore the Invesco Government & Agency Portfolio is considered to be affiliated with the Fund.

The following is a summary of the transactions in, and earnings from, investments in affiliates for the three and six months ended June 30, 2023.

The following is a summary of the transactions in, and earnings from, investments in affiliates for the three and nine months ended September 30, 2023.

Proceeds from Sales

8 unchanged sentences

Portfolio, Institutional Class

( 140,523,508

Value 12/31/2022

11 unchanged sentences

( 350,202,681

The following is a summary of the transactions in, and earnings from, investments in affiliates for the three and six months ended June 30, 2022.

The following is a summary of the transactions in, and earnings from, investments in affiliates for the three and nine months ended September 30, 2022.

Purchases at Cost

66 unchanged sentences

Note 11 - Financial Highlights

The Fund is presenting the following NAV and financial highlights related to investment performance for a Share outstanding for the three and six months ended June 30, 2023 and 2022.

The Fund is presenting the following NAV and financial highlights related to investment performance for a Share outstanding for the three and nine months ended September 30, 2023 and 2022.

An individual investor’s return and ratios may vary based on the timing of capital transactions.

1 unchanged sentence

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Net Asset Value

51 unchanged sentences

Risks and uncertainty related to public health emergencies and any other adverse public health developments;

Risks related to geopolitical conflict, including the on-going hostilities in Ukraine, acts of terrorism, mass casualty

Risks related to geopolitical conflict, including the on-going hostilities in Ukraine, the conflict in Israel and surrounding

areas, the possible expansion of such conflicts and potential geopolitical consequences, acts of terrorism, mass casualty

events, social unrest, civil disturbance or disobedience.

130 unchanged sentences

Operating Activities

Net cash flow provided by (used in) operating activities was $35.4 million and $73.2 million for the six months ended June 30, 2023 and 2022, respectively.

Net cash flow provided by (used in) operating activities was $67.6 million and $173.8 million for the nine months ended September 30, 2023 and 2022, 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 and affiliated investments.

1 unchanged sentence

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, 2023, $183.8 million was paid to purchase United States Treasury Obligations and $241.0 million was received from sales and maturing United States Treasury Obligations.

During the six months ended June 30, 2022, $227.0 million was paid to purchase United States Treasury Obligations and $128.0 million was received from sales and maturing United States Treasury Obligations.

$270.1 million was received from sales of affiliated investments and $275.8 million was paid to purchase affiliated investments during the six months ended June 30, 2023.

$730.9 million was received from sales of affiliated investments and $714.6 million was paid to purchase affiliated investments during the six months ended June 30, 2022.

During the nine months ended September 30, 2023, $250.7 million was paid to purchase United States Treasury Obligations and $324.0 million was received from sales and maturing United States Treasury Obligations.

During the nine months ended September 30, 2022, $311.6 million was paid to purchase United States Treasury Obligations and $203.0 million was received from sales and maturing United States Treasury Obligations.

$350.2 million was received from sales of affiliated investments and $400.9 million was paid to purchase affiliated investments during the nine months ended September 30, 2023.

$1,170.7 million was received from sales of affiliated investments and $958.4 million was paid to purchase affiliated investments during the nine months ended September 30, 2022.

Financing Activities

The Fund’s net cash flow provided by (used in) financing activities was $(35.4) million and $(73.2) million during the six months ended June 30, 2023 and 2022, respectively.

This included $36.8 million and $61.8 million from Shares purchased by Authorized Participants and $72.2 million and $135.1 million from Shares redeemed by Authorized Participants during the six months ended June 30, 2023 and 2022, respectively.

The Fund’s net cash flow provided by (used in) financing activities was $(67.6) million and $(173.8) million during the nine months ended September 30, 2023 and 2022, respectively.

This included $79.6 million and $68.2 million from Shares purchased by Authorized Participants and $147.2 million and $242.0 million from Shares redeemed by Authorized Participants during the nine months ended September 30, 2023 and 2022, respectively.

Results of Operations

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

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 Opt Yield Crude Oil Index ER TM ”).

4 unchanged sentences

COMPARISON OF MARKET, NAV AND DBIQ OPT YIELD CRUDE OIL INDEX ER TM FOR THE THREE AND

SIX MONTHS ENDED JUNE 30, 2023 AND 2022

NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

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.

3 unchanged sentences

Performance Summary

This Report covers the three and six months ended June 30, 2023 and 2022.

This Report covers the three and nine months ended September 30, 2023 and 2022.

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

2 unchanged sentences

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

The section “Summary of the DBIQ-OY CL TR and Underlying Index Commodity Returns for the Three and Six Months Ended June 30, 2023 and 2022”

The section “Summary of the DBIQ-OY CL TR and Underlying Index Commodity Returns for the Three and Nine Months Ended September 30, 2023 and 2022”

below provides an overview of the changes in the closing levels of the DBIQ-OY CL TR by disclosing the change in market value of the underlying component Index Commodity through a “surrogate”

3 unchanged sentences

Summary of the DBIQ-OY CL TR and Underlying Index Commodity

Returns for the Three and Six Months Ended June 30, 2023 and 2022

Returns for the Three and Nine Months Ended September 30, 2023 and 2022

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Underlying Index

10 unchanged sentences

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

FOR THE THREE MONTHS ENDED JUNE 30, 2023 COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2022

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2023 COMPARED TO THE THREE MONTHS ENDED SEPTEMBER 30, 2022

Fund Share Price Performance

For the three months ended June 30, 2023, the NYSE Arca market value of each Share decreased from $14.58 per Share to $14.13 per Share.

The Share price low and high for the three months ended June 30, 2023 and related change from the Share price on March 31, 2023 was as follows:

Shares traded at a low of $13.32 per Share (-8.64%) on May 3, 2023 and a high of $15.64 per Share (+7.27%) on April 12, 2023.

For the three months ended September 30, 2023, the NYSE Arca market value of each Share increased from $14.13 per Share to $17.77 per Share.

The Share price low and high for the three months ended September 30, 2023 and related change from the Share price on June 30, 2023 was as follows:

Shares traded at a low of $14.08 per Share (-0.35%) on July 3, 2023 and a high of $18.18 per Share (+28.67%) on September 27, 2023.

The total return for the Fund on a market value basis was +25.76%.

In the second quarter of 2023, crude oil prices were pressured by the slower than expected recovery in China and recession concerns driven by US Federal Reserve policy, banking sector stress, and political controversy surrounding the US debt ceiling, fueling a broader risk-off sentiment.

Russian oil supplies also continued to flow despite the ban on imports in some countries which contributed to increased oil supply.

Further, higher interest rates led to higher storage costs, which resulted in a great deal of both financial and physical destocking.

For the three months ended June 30, 2022, the NYSE Arca market value of each Share increased from $17.35 per Share to $18.24 per Share.

The Share price low and high for the three months ended June 30, 2022 and related change from the Share price on March 31, 2022 was as follows:

Shares traded at a low of $17.44 per Share (+0.52%) on May 10, 2022 and a high of $21.04 per Share (+21.30%) on June 8, 2022.

Crude oil posted strong returns in the third quarter of 2023.

Front month prices gained nearly 30% as Saudi Arabia and Russia both indicated that they would continue to limit oil supply through the end of the year, helping the global oil market return to a deficit in July.

Demand also came in stronger than expected with China and several non-traditional consuming regions like Latin America and Africa surprising with increased demand.

Finally, an improving macro sentiment supported by increased confidence that the Federal Reserve was nearing the end of its rate hike cycle further helped crude oil recover.

For the three months ended September 30, 2022, the NYSE Arca market value of each Share decreased from $18.24 per Share to $15.19 per Share.

The Share price low and high for the three months ended September 30, 2022 and related change from the Share price on June 30, 2022 was as follows:

Shares traded at a low of $14.72 per Share (-19.30%) on September 26, 2022 and a high of $18.50 per Share (+1.43%) on July 1, 2022.

The total return for the Fund on a market value basis was -16.72%.

Despite plunging sharply towards the end of the quarter and crossing below the key $100 per barrel threshold as recession fears triggered a pullback from risk assets, crude oil still managed to edge higher in the second quarter of 2022.

Prices rallied initially, following the European Union’s ban of Russian oil, which exacerbated already elevated supply concerns.

In addition to the gap left by Russia, OPEC’s dwindling spare production capacity, one of the few remaining shock absorbers, also raised serious concerns.

Crude oil prices fell sharply in the third quarter of 2022 with recession fears dominating investor sentiment, overpowering strong oil fundamentals.

Prices seesawed throughout the quarter as developments in the Russian oil price cap discussions, OPEC+ actions, U.S.

Strategic Petroleum Reserve (SPR) releases, the Russo-Ukraine war and other market drivers added to market uncertainty, driving price volatility.

However, it was still insufficient to reverse earlier losses from falling market risk appetite.

Fund Share Net Asset Performance

For the three months ended June 30, 2023, the NAV of each Share decreased from $14.59 per Share to $14.15 per Share.

Falling commodity futures contract prices for Light Sweet Crude Oil during the three months ended June 30, 2023 contributed to an overall 3.97% decrease in the level of the Index and to a 2.73% decrease in the level of the DBIQ-OY CL TR.

For the three months ended September 30, 2023, the NAV of each Share increased from $14.15 per Share to $17.73 per Share.

Rising commodity futures contract prices for Light Sweet Crude Oil during the three months ended September 30, 2023 contributed to an overall 23.90% increase in the level of the Index and to a 25.58% increase in the level of the DBIQ-OY CL TR.

The total return for the Fund on a NAV value basis was +25.30%.

Net income (loss) for the three months ended June 30, 2023 was $(7.3) million, primarily resulting from $3.1 million of income, net realized gain (loss) of $(2.4) million, net change in unrealized gain (loss) of $(7.5) million and net operating expenses of $0.5 million.

For the three months ended June 30, 2022, the NAV of each Share increased from $17.23 per Share to $18.21 per Share.

Rising commodity futures contract prices for Light Sweet Crude Oil during the three months ended June 30, 2022 contributed to an overall 5.70% increase in the level of the Index and to a 5.98% increase in the level of the DBIQ-OY CL TR.

Net income (loss) for the three months ended September 30, 2023 was $58.2 million, primarily resulting from $3.4 million of income, net realized gain (loss) of $3.4 million, net change in unrealized gain (loss) of $51.8 million and net operating expenses of $0.5 million.

For the three months ended September 30, 2022, the NAV of each Share decreased from $18.21 per Share to $15.16 per Share.

Falling commodity futures contract prices for Light Sweet Crude Oil during the three months ended September 30, 2022 contributed to an overall 17.00% decrease in the level of the Index and to a 16.44% decrease in the level of the DBIQ-OY CL TR.

The total return for the Fund on a NAV value basis was -16.75%.

Net income (loss) for the three months ended June 30, 2022 was $28.1 million, primarily resulting from $0.8 million of income, net realized gain (loss) of $15.5 million, net change in unrealized gain (loss) of $12.7 million and net operating expenses of $0.9 million.

FOR THE SIX MONTHS ENDED JUNE 30, 2023 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2022

Net income (loss) for the three months ended September 30, 2022 was $(72.4) million, primarily resulting from $1.8 million of income, net realized gain (loss) of $29.3 million, net change in unrealized gain (loss) of $(102.7) million and net operating expenses of $0.7 million.

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 COMPARED TO THE NINE MONTHS ENDED SEPTEMBER 30, 2022

Fund Share Price Performance

For the six months ended June 30, 2023, the NYSE Arca market value of each Share decreased from $15.21 per Share to $14.13 per Share.

The Share price low and high for the six months ended June 30, 2023 and related change from the Share price on December 31, 2022 was as follows:

Shares traded at a low of $13.10 per Share (-13.88%) on March 17, 2023 and a high of $15.64 per Share (+2.83%) on April 12, 2023.

For the nine months ended September 30, 2023, the NYSE Arca market value of each Share increased from $15.21 per Share to $17.77 per Share.

The Share price low and high for the nine months ended September 30, 2023 and related change from the Share price on December 31, 2022 was as follows:

Shares traded at a low of $13.10 per Share (-13.88%) on March 17, 2023 and a high of $18.18 per Share (+19.53%) on September 27, 2023.

The total return for the Fund on a market value basis was +16.83%.

Crude oil prices ended the first two quarters of 2023 in negative territory.

While prices oscillated during the first quarter on crude inventory builds, Federal Reserve rate hike concerns, the Russian “production cut”, mandated US Strategic Petroleum Reserve (SPR) releases, and some optimistic signs out of China, losses were extended in the second quarter.

Headwinds from the disappointing recovery in China and recession concerns driven by US Federal Reserve policy, banking sector stress, and political controversy surrounding the US debt ceiling continued to blow hard, while Russian oil supplies continued to make their way onto the market adding to oil inventories.

Front month crude oil prices were down over 8% year-to-date.

For the six months ended June 30, 2022, the NYSE Arca market value of each Share increased from $13.57 per Share to $18.24 per Share.

The Share price low and high for the six months ended June 30, 2022 and related change from the Share price on December 31, 2021 was as follows:

Crude oil prices ended the first three quarters of 2023 in positive territory thanks to strong gains in the third quarter.

While prices ping ponged in the first quarter on crude inventory builds, Federal Reserve rate hike concerns, the Russian “production cut”, mandated US Strategic Petroleum Reserve (SPR) releases, and some optimistic signs out of China, losses were extended in the second quarter.

Headwinds from the disappointing recovery in China and Federal Reserve/banking sector/debt ceiling-driven recession concerns continued to blow hard, while Russian oil supplies continued to make their way onto the market adding to the sloppiness in balances.

However, prices recovered significantly in June and through the third quarter as Saudi Arabian and Russian supply curbs brought the global oil market back to a deficit and demand outperformed expectations.

Macro sentiment also improved amid US economic resilience and a slowdown in Federal Reserve interest rate hikes, supporting broader risk appetite.

For the nine months ended September 30, 2022, the NYSE Arca market value of each Share increased from $13.57 per Share to $15.19 per Share.

The Share price low and high for the nine months ended September 30, 2022 and related change from the Share price on December 31, 2021 was as follows:

Shares traded at a low of $13.75 per Share (+1.33%) on January 3, 2022 and a high of $21.04 per Share (+55.11%) on June 8, 2022.

The total return for the Fund on a market value basis was +11.94%.

Despite the pullback towards the end of the second quarter of 2022 due to intensifying recession fears, the Fund posted a significant gain of over 34% in the first half of the year.

Snowballing supply concerns fueled by Russia’s invasion of Ukraine and the resulting sanctions, most notably the European Union’s ban of Russian oil and refined products, sent front month WTI crude oil prices into triple digit territory.

In addition to the massive gap left by Russia (the world’s third largest oil producer), OPEC’s dwindling spare production capacity, one of the few remaining shock absorbers, fed into concerns over a severe global energy crisis.

Despite the pull back towards the end of the second quarter through the third quarter due to intensifying recession fears, the Fund managed to sustain a gain of over 10% year-to-date in 2022.

Fund Share Net Asset Performance

For the six months ended June 30, 2023, the NAV of each Share decreased from $15.18 per Share to $14.15 per Share.

Falling commodity futures contract prices for Light Sweet Crude Oil during the six months ended June 30, 2023 contributed to an overall 8.58% decrease in the level of the Index and to a 6.31% decrease in the level of the DBIQ-OY CL TR.

For the nine months ended September 30, 2023, the NAV of each Share increased from $15.18 per Share to $17.73 per Share.

Rising commodity futures contract prices for Light Sweet Crude Oil during the nine months ended September 30, 2023 contributed to an overall 13.27% increase in the level of the Index and to a 17.65% increase in the level of the DBIQ-OY CL TR.

The total return for the Fund on a NAV value basis was +16.80%.

Net income (loss) for the six months ended June 30, 2023 was $(18.5) million, primarily resulting from $6.2 million of income, net realized gain (loss) of $(3.4) million, net change in unrealized gain (loss) of $(20.2) million and net operating expenses of $1.0 million.

For the six months ended June 30, 2022, the NAV of each Share increased from $13.50 per Share to $18.21 per Share.

Rising commodity futures contract prices for Light Sweet Crude Oil during the six months ended June 30, 2022 contributed to an overall 35.20% increase in the level of the Index and to a 35.67% increase in the level of the DBIQ-OY CL TR.

Net income (loss) for the nine months ended September 30, 2023 was $39.8 million, primarily resulting from $9.6 million of income, net realized gain (loss) of $0.0 million, net change in unrealized gain (loss) of $31.6 million and net operating expenses of $1.5 million.

For the nine months ended September 30, 2022, the NAV of each Share increased from $13.50 per Share to $15.16 per Share.

Rising commodity futures contract prices for Light Sweet Crude Oil during the nine months ended September 30, 2022 contributed to an overall 12.23% increase in the level of the Index and to a 13.37% increase in the level of the DBIQ-OY CL TR.

The total return for the Fund on a NAV value basis was +12.30%.

Net income (loss) for the six months ended June 30, 2022 was $146.6 million, primarily resulting from $0.9 million of income, net realized gain (loss) of $35.2 million, net change in unrealized gain (loss) of $112.2 million and net operating expenses of $1.8 million.

Net income (loss) for the nine months ended September 30, 2022 was $74.2 million, primarily resulting from $2.7 million of income, net realized gain (loss) of $64.5 million, net change in unrealized gain (loss) of $9.5 million and net operating expenses of $2.6 million.

Critical Accounting Estimates

24 unchanged sentences

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

The following table indicates the trading VaR associated with the Fund’s net assets as of June 30, 2023.

For the Six Months Ended

June 30, 2023

The following table indicates the trading VaR associated with the Fund’s net assets as of September 30, 2023.

For the Nine Months Ended

September 30, 2023

Daily Volatility

21 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, 2023:

The following were the primary trading risk exposures of the Fund as of September 30, 2023:

Light Sweet Crude Oil

17 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 1. Financial Statements