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Item 2. Management’s Discussion and Analysis

2025-08-07 compared with 2025-05-08 · 81 added, 47 removed, 238 unchanged (35% of the section changed)

30 unchanged sentences

The Fund may also gain exposure to United States Treasury Obligations through investments in exchange-traded funds (“ETFs”) (affiliated or otherwise) that track indexes that measure the performance of United States Treasury Obligations with a maximum remaining maturity of up to 12 months (“T-Bill ETFs”).

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

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

While the Fund's performance reflects the appreciation and depreciation of those holdings, the Fund's performance, whether positive or negative, is driven primarily by its strategy of trading futures contracts with the aim of seeking to track the Index.

103 unchanged sentences

Operating Activities

Net cash flow provided by (used in) operating activities was $11.5 million and $19.8 million for the three months ended March 31, 2025 and 2024, respectively.

Net cash flow provided by (used in) operating activities was $(26.9) million and $40.6 million for the six months ended June 30, 2025 and 2024, respectively.

These amounts primarily include net income (loss), net purchases and sales of money market mutual funds and net purchases and sales of United States Treasury Obligations, affiliated investments and net deposits to/from the Commodity Broker.

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During the three months ended March 31, 2025, $0 was paid to purchase United States Treasury Obligations and $14.0 million was received from sales and maturing United States Treasury Obligations.

During the three months ended March 31, 2024, $13.6 million was paid to purchase United States Treasury Obligations and $14.0 million was received from sales and maturing United States Treasury Obligations.

$82.3 million was received from sales of affiliated investments and $68.7 million was paid to purchase affiliated investments during the three months ended March 31, 2025.

$82.8 million was received from sales of affiliated investments and $85.3 million was paid to purchase affiliated investments during the three months ended March 31, 2024.

During the three months ended March 31, 2025, net deposits to/from the Commodity Broker was $20.7 million.

There were no net deposits to/from the Commodity Broker during the three months ended March 31, 2024.

During the six months ended June 30, 2025, there were no purchases of United States Treasury Obligations and $54.0 million was received from sales and maturing United States Treasury Obligations.

During the six months ended June 30, 2024, $66.2 million was paid to purchase United States Treasury Obligations and $83.0 million was received from sales and maturing United States Treasury Obligations.

$115.8 million was received from sales of affiliated investments and $167.4 million was paid to purchase affiliated investments during the six months ended June 30, 2025.

$157.5 million was received from sales of affiliated investments and $162.8 million was paid to purchase affiliated investments during the six months ended June 30, 2024.

During the six months ended June 30, 2025, net deposits to/from the Commodity Broker was $20.1 million.

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

Financing Activities

The Fund’s net cash flow provided by (used in) financing activities was $(12.5) million and $(19.8) million during the three months ended March 31, 2025 and 2024, respectively.

This included $17.4 million and $20.0 million from Shares purchased by Authorized Participants and $29.9 million and $39.6 million from Shares redeemed by Authorized Participants during the three months ended March 31, 2025 and 2024, respectively.

During the three months ended March 31, 2025 and 2024, distributions paid to Shareholders were $0 and $0.2 million, respectively.

The Fund’s net cash flow provided by (used in) financing activities was $25.9 million and $(40.6) million during the six months ended June 30, 2025 and 2024, respectively.

This included $81.8 million and $29.4 million from Shares purchased by Authorized Participants and $56.0 million and $69.8 million from Shares redeemed by Authorized Participants during the six months ended June 30, 2025 and 2024, respectively.

During the six months ended June 30, 2025 and 2024, distributions paid to Shareholders were $0.0 and $0.2 million, respectively.

Results of Operations

FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024

FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024

The following graphs illustrate the percentage changes in (i) the market price of the Shares (as reflected by the line “Market”), (ii) the Fund’s NAV (as reflected by the line “NAV”), and (iii) the closing levels of the Index (as reflected by the line “DBIQ Opt Yield Crude Oil Index ER TM ”).

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

There can be no assurance that the price of the Shares or the Fund’s NAV will exceed the Index levels.

No representation is being made that the Index will or is likely to achieve closing levels consistent with or similar to those set forth herein.

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.

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

THREE MONTHS ENDED MARCH 31, 2025 AND 2024

COMPARISON OF MARKET, NAV AND DBIQ OPT YIELD CRUDE OIL INDEX ER TM FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR INDEX LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

Performance Summary

This Report covers the three months ended March 31, 2025 and 2024.

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

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

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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 Months Ended March 31, 2025 and 2024” 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” (and analogous) index that also reflects 3-month United States Treasury Obligations returns.

The section “Summary of the DBIQ-OY CL TR and Underlying Index Commodity Returns for the Six Months Ended June 30, 2025 and 2024” 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” (and analogous) index that also reflects 3-month United States Treasury Obligations returns.

Please note also that the Fund’s objective is to track the Index (not the DBIQ-OY CL TR), and the Fund does not attempt to outperform or underperform the Index.

1 unchanged sentence

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

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

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

Three Months Ended

Six Months Ended

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 MARCH 31, 2025 COMPARED TO THE THREE MONTHS ENDED MARCH 31, 2024

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

Fund Share Price Performance

For the three months ended March 31, 2025, the NYSE Arca market value of each Share increased from $14.31 per Share to $14.34 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 $13.36 per Share (-6.64%) on March 10, 2025 and a high of $15.90 per Share (+11.11%) on January 15, 2025.

For the three months ended June 30, 2025, the NYSE Arca market value of each Share decreased from $14.34 per Share to $13.22 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 $11.91 per Share (-16.95%) on May 5, 2025 and a high of $14.79 per Share (+3.14%) on June 20, 2025.

The total return for the Fund on a market value basis was -7.81%.

Crude Oil ended flat on the quarter but prices were volatile throughout the period.

Crude Oil prices initially rallied in January on the prior U.S.

administration's farewell sanctions on Russian oil and gas but then retreated as ceasefire developments provided relief on the geopolitical front.

administrations's “drill, baby, drill” plans raised U.S.

supply expectations, tariff headlines drove a risk-off move, and OPEC announced it would be gradually bringing back production.

Oil prices recovered significantly in March, as the U.S.

imposed a 25% tariff on any country buying Venezuelan oil and gas and issued fresh sanctions on Chinese refineries processing Iranian Crude Oil.

For the three months ended March 31, 2024, the NYSE Arca market value of each Share increased from $13.92 per Share to $15.54 per Share.

The Share price low and high for the three months ended March 31, 2024 and related change from the Share price on December 31, 2023 was as follows:

Shares traded at a low of $13.81 per Share (+0.79%) on January 2, 2024 and a high of $15.54 per Share (+11.64%) on March 28, 2024.

Crude oil prices moved lower in the second quarter of 2025, with the Fund posting a significant loss as oil markets faced several headwinds.

The quarter started with sharp declines in April, driven by the Liberation Day tariffs, more OPEC+ production, and concerns about global economic growth.

There were brief recoveries tied to increasing geopolitical tensions in the Middle East and resulting supply risks, but these were outweighed by rising inventories and softer demand.

By the end of the quarter, oil markets were back under pressure as supply outpaced demand expectations, and trade and policy volatility continued.

Overall, the Fund’s performance reflected a tough environment for oil, with prices trending down after a volatile start to the year.

For the three months ended June 30, 2024, the NYSE Arca market value of each Share increased from $15.54 per Share to $15.87 per Share.

The Share price low and high for the three months ended June 30, 2024 and related change from the Share price on March 31, 2024 was as follows:

Shares traded at a low of $14.50 per Share (-6.66%) on June 4, 2024 and a high of $16.12 per Share (+3.73%) on April 15, 2024.

The total return for the Fund on a market value basis was +2.12%.

Crude oil prices gained in the first quarter of 2024 as escalating tensions in the Middle East and Ukraine raised supply disruption risk.

Crude oil experienced a small loss in the second quarter of 2024.

While some of that loss was driven by broader risk off sentiment due to the repeated delays of Federal Reserve rate cut expectations, other drivers included fading geopolitical risk premium, U.S.

crude inventory builds due to unplanned refinery outages and unattractive refining margins, and OPEC announcing plans to gradually bring back barrels later this year.

While OPEC also announced an extension of some cuts, this was largely expected and had a minimal impact on prices.

Fund Share Net Asset Performance

For the three months ended June 30, 2025, the NAV of each Share decreased from $14.35 per Share to $13.23 per Share.

Falling commodity futures contract prices for Light Sweet Crude Oil during the three months ended June 30, 2025 contributed to an overall 8.57% decrease in the level of the Index and to a 7.59% decrease in the level of the DBIQ-OY CL TR.

The total return for the Fund on a NAV value basis was -7.81%.

Net income (loss) for the three months ended June 30, 2025 was $(13.8) million, primarily resulting from $1.9 million of income, net realized gain (loss) of $0.4 million, net change in unrealized gain (loss) of $(15.8) million and net operating expenses of $0.3 million.

For the three months ended June 30, 2024, the NAV of each Share increased from $15.57 per Share to $15.86 per Share.

Rising commodity futures contract prices for Light Sweet Crude Oil during the three months ended June 30, 2024 contributed to an overall 0.71% increase in the level of the Index and to a 2.06% increase in the level of the DBIQ-OY CL TR.

The total return for the Fund on a NAV value basis was +1.86%.

Net income (loss) for the three months ended June 30, 2024 was $4.0 million, primarily resulting from $3.2 million of income, net realized gain (loss) of $1.8 million, net change in unrealized gain (loss) of $(0.6) million and net operating expenses of $0.4 million.

FOR THE SIX MONTHS ENDED JUNE 30, 2025 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2024

Fund Share Price Performance

For the six months ended June 30, 2025, the NYSE Arca market value of each Share decreased from $14.31 per Share to $13.22 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 $11.91 per Share (-16.77%) on May 5, 2025 and a high of $15.90 per Share (+11.11%) on January 15, 2025.

The total return for the Fund on a market value basis was -7.62%.

Crude oil markets were volatile in the first half of 2025, leading to a negative return for the Fund.

The year began with sharp price swings as markets reacted to new U.S.

sanctions on Russian oil and gas, fluctuating geopolitical developments, and shifting expectations for U.S.

OPEC’s plan to gradually bring back production and ongoing tariff headlines added to the uncertainty.

Oil prices briefly recovered in March after new U.S.

tariffs on Venezuelan oil and more sanctions on Chinese refineries, but this did not continue into the second quarter.

Oil prices moved lower as countries were hit with fresh U.S.

tariffs, higher OPEC+ output, and ongoing worries about global growth.

Occasional rebounds from geopolitical risks were also outweighed by rising inventories and softer demand, especially following Iran's muted retaliatory response.

By mid-year, oil prices were back under pressure, with a supply surplus and policy uncertainty keeping sentiment cautious.

For the six months ended June 30, 2024, the NYSE Arca market value of each Share increased from $13.92 per Share to $15.87 per Share.

The Share price low and high for the six months ended June 30, 2024 and related change from the Share price on December 31, 2023 was as follows:

Shares traded at a low of $13.81 per Share (-0.79%) on January 2, 2024 and a high of $16.12 per Share (+15.81%) on April 15, 2024.

The total return for the Fund on a market value basis was +14.01%.

Crude oil performed positively in the first half of 2024.

Prices gained as escalating tensions in the Middle East and Russia/Ukraine raised supply concerns, ending the first half of the year up around 15%.

In addition to geopolitics, an improving macro backdrop amid a resilient U.S.

economy, and expected Federal Reserve easing also supported broader risk assets like energy.

Furthermore, the extended OPEC+ production cuts also helped to tighten global balances, providing a sturdy floor for prices.

However, this tailwind eased in the second quarter as the Federal Reserve stuck to its higher for longer rhetoric amid persistent inflation, weighing down the entire energy complex.

Other factors like fading geopolitical risk premium, US inventory builds and OPEC’s production plans also played a role.

Fund Share Net Asset Performance

For the three months ended March 31, 2025, the NAV of each Share increased from $14.28 per Share to $14.35 per Share.

Rising commodity futures contract prices for Light Sweet Crude Oil during the three months ended March 31, 2025 contributed to an overall 0.36% decrease in the level of the Index and to a 0.70% increase in the level of the DBIQ-OY CL TR.

For the six months ended June 30, 2025, the NAV of each Share decreased from $14.28 per Share to $13.23 per Share.

Falling commodity futures contract prices for Light Sweet Crude Oil during the six months ended June 30, 2025 contributed to an overall 8.90% decrease in the level of the Index and to a 6.94% decrease in the level of the DBIQ-OY CL TR.

The total return for the Fund on a NAV value basis was -7.35%.

Net income (loss) for the three months ended March 31, 2025 was $2.7 million, primarily resulting from $2.1 million of income, net realized gain (loss) of $0 million, net change in unrealized gain (loss) of $1.0 million and net operating expenses of $0.4 million.

For the three months ended March 31, 2024, the NAV of each Share increased from $13.96 per Share to 15.57 per Share.

Rising commodity futures contract prices for Light Sweet Crude Oil during the three months ended March 31, 2024 contributed to an overall 10.37% increase in the level of the Index and to a 11.84% increase in the level of the DBIQ-OY CL TR.

Net income (loss) for the six months ended June 30, 2025 was $(11.1) million, primarily resulting from $4.0 million of income, net realized gain (loss) of $0.4 million, net change in unrealized gain (loss) of $(14.8) million and net operating expenses of $0.7 million.

For the six months ended June 30, 2024, the NAV of each Share increased from $13.96 per Share to $15.86 per Share.

Rising commodity futures contract prices for Light Sweet Crude Oil during the six months ended June 30, 2024 contributed to an overall 11.15% increase in the level of the Index and to a 14.15% increase in the level of the DBIQ-OY CL TR.

The total return for the Fund on a NAV value basis was +13.61%.

Net income (loss) for the three months ended March 31, 2024 was $26.8 million, primarily resulting from $3.3 million of income, net realized gain (loss) of $(0.1) million, net change in unrealized gain (loss) of $24.1 million and net operating expenses of $0.5 million.

Net income (loss) for the six months ended June 30, 2024 was $30.8 million, primarily resulting from $6.5 million of income, net realized gain (loss) of $1.7 million, net change in unrealized gain (loss) of $23.5 million and net operating expenses of $0.9 million.

Critical Accounting Estimates

22 unchanged sentences

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

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

For the Three Months Ended

March 31, 2025

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

For the Six Months Ended

June 30, 2025

Daily Volatility

15 unchanged sentences

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

QUALITATIVE DISCLOSURES REGARDING PRIMARY TRADING RISK EXPOSURES

QUALITATIVE DISCLOSURES REGARDING PRIMARY TRADING MARKET RISK EXPOSURES

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

3 unchanged sentences

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

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

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

Light Sweet Crude Oil

4 unchanged sentences

Market expectations about events that will influence either demand or supply can cause prices for Light Sweet Crude Oil to fluctuate greatly.

A significant amount of the world oil production

capacity is controlled by a relatively small number of producers.

A significant amount of the world oil production capacity is controlled by a relatively small number of producers.

Any large change in production by one of these producers could have a substantial effect on the price of Light Sweet Crude Oil.

9 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