Invesco DB Commodity Tracking retains its Morningstar Medalist Rating of Bronze. The strategy charges fees in line with its similarly distributed peers, priced within the middle quintile.  

 The strategy's sensible investment philosophy earns it an Above Average Process Pillar rating. The strategy has not disclosed the portfolio management team's names, reducing confidence and contributing to a Below Average People Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

Analyst Rating

Morningstar's style-agnostic evaluation of this fund's process seeks to understand whether the strategy has a performance objective and sensible, clearly defined, repeatable execution. Invesco DB Commodity Tracking earns an Above Average Process Pillar rating. The primary contributor to the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Respectable risk-adjusted performance also influences the rating. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the process was successful over that period. 

The investment strategy as stated in the fund's prospectus is as follows: 

 The investment seeks to track changes, whether positive or negative, in the level of the DBIQ Optimum Yield Diversified Commodity Index Excess Return™.  The fund pursues its investment objective by investing in a portfolio of exchange-traded futures on Light Sweet Crude Oil (WTI), Heating Oil, RBOB Gasoline, Natural Gas, Brent Crude, Gold, Silver, Aluminum, Zinc, Copper Grade A, Corn, Wheat, Soybeans, and Sugar. The index is composed of notional amounts of each of these commodities.

Above Average

Process

This strategy's portfolio-management team has not disclosed any manager names, leaving behind limited data to form an analysis.

 Analyzing the remaining available data, the management team running the separate account has fallen short compared with peers, leading to a Below Average People Pillar rating.

Below Average

People

Invesco succeeds in a number of areas but also has its share of subpar offerings, along with many others that land somewhere in the middle. A mid-2023 change of CEO, from longtime chief Marty Flanagan to veteran Invesco executive Andrew Schlossberg, is noteworthy, and several other executives retired or departed in 2023. Portfolio-manager shuffles aimed at bolstering poor performers, which began under Flanagan, have continued under Schlossberg, who told Morningstar his most important aim is bolstering “investment quality.” However, major changes of direction or approach are unlikely. The firm retains a Morningstar Parent rating of Average. 
Invesco’s international-equity teams in Texas and New York remain solid. However, the extensive U.S.-equity lineup needs improvement. Fixed-income offerings run the gamut: The multisector and short-term-bond areas are good, but corporate high-yield is less impressive. The firm’s exchange-traded fund lineup includes the popular Nasdaq-focused QQQ; passive strategies make up around 37% of Invesco’s assets under management. Invesco has not been averse to trying new types of strategies, and it was among the firms that immediately launched a spot bitcoin ETF after SEC approval in early 2024.
The picture outside the United States is mixed. Fund performance has been subpar in Asia, and while the picture has brightened in the United Kingdom and Europe, that region still can’t be considered a strength.

Average

Parent

Invesco DB Commodity Index Tracking Fund

DBC tracks an index of 14 commodities. It uses futures contracts to maintain exposure and selects them based on the shape of the futures curve to minimize contango.

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Goldman Sachs (GS) expects commodities to return 15% by the year-end. We have highlighted five ETFs that we think could be well-positioned if Goldman's commodity prediction comes true.

Follow Goldman With These Commodity ETFs

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Valid until the market close on April 30, 2024 The S&P 500 closed March with a monthly gain of 3.10%, after a gain of 5.17% in February. After close on the last day of the month, zero of five Ivy portfolio ETFs are signaling “cash.

Moving Averages: S&P Finishes March Up 3.1%

Valid until the market close on March 31, 2024 The S&P 500 closed February with a monthly gain of 5.17%, after a gain of 1.59% in January.

Moving Averages: S&P Finishes February Up 5.2%

The S&P 500 closed January with a monthly gain of 1.59%, after a gain of 4.42% in December. After close on the last day of the month, one of five Ivy portfolio ETFs — Invesco DB Commodity Index Tracking Fund (DBC) — is signaling “cash”, unchanged from last month's final single “cash” signal.

Moving Averages: S&P Finishes January Up 1.6%

The composite of 29 primary commodities traded on U.S. and U.K. exchanges declined by 3.91% in Q4 2023 and was 4.52% lower at the end of the year. Soft commodities, including sugar, coffee, cocoa, cotton, and orange juice, were the best-performing sector, rising 24.04% in 2023. The energy sector suffered the most significant loss, falling 21.85% in 2023, while metals and grains also declined.

DBC: Commodities Consolidation In 2023

The S&P 500 closed December with a monthly gain of 4.42%, after a gain of 8.92% in November. After close on the last day of the month, one of five Ivy portfolio ETFs — Invesco DB Commodity Index Tracking Fund (DBC) — is signaling “cash”, unchanged from last month's final single “cash” signal.

Moving Averages: S&P Finishes December Up 4.4%

Valid until the market close on December 31, 2023 The S&P 500 closed November with a monthly gain of 8.92%, after a loss of 2.20% in October.

Moving Averages: S&P Finishes November Up 8.9%

2024 US GDP growth has generally outperformed economists' expectations amid strong consumer spending in recent quarters. Commodities often benefit from higher cyclical demand, but many hard and soft real assets have simply meandered in price action this year. With weaker economic expansion seen in 2024 and a still-strong US Dollar Index, I reiterate a hold rating on DBC.

DBC: Commodities Remain Lackluster, Monitoring Macro Clues

The Invesco DB Commodity Index Tracking Fund ETF is a popular exchange-traded fund that allows investors to gain exposure to commodity futures. The DBC ETF has over $2 billion in managed assets and offers exposure to 14 extensively traded commodities. DBC has delivered mixed performance, underperforming the S&P 500 in the last year but posting gains in the long term.

DBC: A Good Way To Get Broad Commodity Exposure

Valid until the market close on November 30, 2023 The S&P 500 closed October with a monthly loss of 2.20%, after a loss of 4.93% in September.

Moving Averages: S&P Finishes October Down 2.2%

Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF

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Hi VettaFi Voices! Commodities have seen outflows year to date overall, and some of the best performers have seen outflows.

VettaFi Voices On: Considering Commodities

The S&P 500 closed September with a monthly loss of 4.93%, after a loss of 1.71% in August.

Moving Averages: S&P Finishes September Down 4.9%

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The S&P 500 closed August with a monthly loss of 1.71%, after a gain of 3.22% in July.

Moving Averages: S&P Finishes August Down 1.7%

Short-term and long-term factors are driving commodity prices in the same direction, creating an opportunity for investors. Supply and demand imbalances driven by the transition to sustainable energy generation and demand for EV materials could drive commodity prices higher. Unpredictable weather, the war in Ukraine, and the potential for reemerging inflation are also factors driving commodity prices.

DBC: Benefit From Short-Term And Long-Term Commodity Price Drivers

Valid until the market close on August 31, 2023 The S&P 500 closed July with a monthly gain of 3.11%, after a gain of 6.47% in June.

Moving Averages: S&P Finishes July Up 3.1%

The composite of 29 leading commodities rose by 0.21% in Q2 2023, but fell 1.79% over the first half of the year, with the energy sector being the worst-performing. Four of the six commodity market sectors declined in Q2, with precious metals leading the decline. However, the animal protein sector led the asset class higher with 18.54% and 18.68% respective gains. Despite the overall decline, I maintain a bullish position for the commodities asset class in the second half of 2023 and Invesco DB Commodity Index Tracking Fund ETF.

DBC: Bearish Quarter For Diversified Commodity ETF, Bullish Future On Horizon

Valid until the market close on July 31, 2023 The S&P 500 closed June with a monthly gain of 6.47%, after a gain of 0.25% in May.

Moving Averages: S&P Finishes June Up 6.5%

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Inflation is hot across the globe. The Russia-Ukraine war, the supply-chain woes resulting from the pandemic and the resultant rally in commodity prices have amplified inflation.

Sector ETFs to Play Persistent Global Inflation

The Invesco DB Commodity Index Tracking Fund printed a bullish engulfing candlestick pattern last week, indicating a potential shift in favor of the resource trade. DBC has a high management fee and lackluster long-term performance, however, making it better suited for tactical trades and intermediate-term views. The long-term technical trend appears bearish, but there are signs that the downtrend is losing strength, leading to a hold rating on DBC.

Commodities Trying To Rally Amid Bearish Global Growth Trends, DBC A Hold

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Valid until the market close on June 30, 2023  The S&P 500 closed May with a monthly gain of 0.25%, after a gain of 1.46% in April.

Moving Averages: S&P Finishes May Up 0.25%

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The annual inflation rate in the United States dropped to 4.9% in April 2023, the lowest since April 2021.

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The S&P 500 closed April with a monthly gain of 1.46%, after a gain of 3.51% in March.

Moving Averages: S&P Finishes April Up 1.46%

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News for Invesco DB Commodity Index Tracking Fund ETF (DBC)