(DBC) DB Commodity Index Tracking - Overview

The Invesco DB Commodity Index Tracking Fund (NYSE ARCA: DBC) is a U.S.-based ETF that seeks to replicate the performance of the DBIQ Optimum Yield Diversified Commodity Index by holding a basket of exchange-traded futures on 14 physical commodities, spanning energy (WTI crude, Brent, heating oil, gasoline, natural gas), precious metals (gold, silver), industrial metals (aluminum, zinc, copper), and agriculture (corn, wheat, soybeans, sugar). The fund’s exposure is expressed in notional terms rather than physical holdings, meaning returns are driven by futures price movements and the roll-yield dynamics of the underlying contracts.

Key quantitative points (as of the most recent filing, Q4 2024) include an expense ratio of roughly 0.84%, an energy weighting of about 55 % of the index, industrial metals near 30 %, and agriculture roughly 15 %. The ETF’s performance is highly sensitive to global demand for oil and gas, which is in turn linked to macro-economic growth and geopolitical supply shocks; metal prices are driven by industrial production trends and supply-chain constraints, while agricultural futures react to weather patterns and USDA crop forecasts. Because DBC holds rolling futures, its returns can be materially affected by contango or backwardation in each sub-market, a factor that often explains the divergence between spot price movements and the fund’s net asset value.

For a deeper, data-rich dive into DBC’s risk-adjusted metrics and sector-level roll-yield analysis, you might explore ValueRay’s commodity dashboards.