Invesco DB Energy Fund

Invesco DB Energy Fund (DBE) is a commodity pool. It holds futures contracts on six energy commodities, led by Brent and WTI crude oil, and aims to track the DBIQ Optimum Yield Energy Index Excess Return. Unlike energy stock funds, it is tied directly to fuel prices. It also costs more: 0.75% a year, against a 0.41% average for similar funds. Holders get a Schedule K-1 tax form instead of a 1099.

• Over the year to Oct 27, 2026, DBE returned +117.4%, 2nd of 8 among similar funds.
• Its 5-year annualized return was +20.4% and its 10-year +14.1%.
• In the 2020 COVID crash it fell 40.1% and regained its old high 11 months after the low.
• Its worst full calendar year was 2008 (-41.9%); its best was 2021 (+57.6%).
• The deepest fall in its price history was 86.7% (Jul 3, 2008 to Apr 27, 2020), not yet recovered.

The fund holds futures contracts and the cash and Treasury bills backing them, not the commodity itself; its net assets were $71.5M as of Jun 30, 2026 (per its 10-Q). As a commodity pool it files 10-Q and 10-K reports instead of N-PORT holdings reports, so there is no holdings list.

DBE seeks to track the DBIQ Optimum Yield Energy Index Excess Return, which Invesco licenses from Deutsche Bank. Once a year, the index sponsor screens energy futures that trade in US dollars on major US and European exchanges, based on how much of each trades. It then weights each commodity by averaging its share of trading and its share of world production. Each commodity gets at least 5%. As of December 31, 2025, the fund's weights were Brent crude 32.1%, WTI crude 30.0%, natural gas 11.0%, gas oil 10.7%, ultra-low sulphur diesel (heating oil) 8.3% and RBOB gasoline 7.9%.

Futures contracts expire, so the fund must "roll" each one into a later contract. It does not roll on a fixed monthly schedule. Instead, the index picks the replacement contract with the most favorable "implied roll yield." When later contracts cost more than near ones (called contango), rolling drags on returns. When they cost less (called backwardation), rolling helps. The rule tries to soften the drag and capture the gain, but it cannot remove either.

The cash backing the futures sits in Treasury bills, money market funds and T-bill ETFs, and the interest it earns adds to returns. If trading limits block more purchases of a contract, the managing owner, Invesco Capital Management, may use other futures whose prices tend to move with it. DBE is not a 1940 Act fund, and it is taxed as a partnership.

• DBE charges 0.75% a year, versus an average of 0.41% for the similar funds below (7th of 8, cheapest first).

DBE gives concentrated exposure to energy futures with large swings, including an 86.7% drop that had not been recovered as of October 27, 2026.

DBE could add direct exposure to fuel prices. In the 2022 bear market it gained 41.6% while stocks fell. Even so, it dropped 27.2% from June to September 2022 and took about 41.5 months to recover. In the 2020 COVID crash it fell 40.1% and recovered in 11 months. In the 2008 crisis it fell 70.2%, and 2008 was its worst calendar year, at −41.9%. Its deepest drop, 86.7% from July 2008 to April 2020, had not been recovered as of October 27, 2026. Anyone forced to sell in a slump could lock in large losses. As of that date it yielded 1.68%, paid once a year, and it charges 0.75% a year. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by legacy category (no holdings report for this fund).