Invesco DB Base Metals Fund to update index methodology in November

Invesco DB Base Metals Fund (NYSE Arca:DBB), currently trading at $20.42 with a year-to-date return of 8.33%, will undergo changes to its underlying index methodology effective November 10, 2025, according to a statement in a press release and SEC filing published Friday. InvestingPro data shows the fund maintains relatively low price volatility with a beta of 0.57. The updates affect the DBIQ Optimum Yield Industrial Metals Index Excess Return, which the fund seeks to track. Deutsche Bank AG, the index provider, will implement the changes.

The revisions include an expanded commodity universe, with eligible commodities determined annually based on liquidity and economic importance. The number of commodities in the index universe is expected to increase under the new methodology. The fund’s strong liquidity position is reflected in its impressive current ratio of 407.97, according to InvestingPro analysis.

The optimum yield methodology will be modified to remove contracts with limited liquidity. The index will also shift from static allocations to a rules-based annual review of base weights and commodities, aiming to better reflect current global production and market liquidity.

Sector and single commodity caps and floors will be introduced at the annual rebalance to reduce concentration risk. Additionally, an intra-year rebalance event will be triggered if a large deviation from annual target weights occurs at a monthly observation date.

According to the press release, the changes will not affect the fund’s investment objective. The information in this article is based on a statement in a press release and a recent SEC filing.

In other recent news, Invesco DB Base Metals Fund has announced upcoming changes to the methodology of its underlying index, the DBIQ Optimum Yield Industrial Metals Index Excess Return. These changes, set to take effect on November 10, 2025, will be implemented by Deutsche Bank AG, the index provider. The modifications involve an expansion of the eligible commodity universe, which will now be determined annually. This adjustment is based on criteria such as liquidity and economic importance. As a result, the number of commodities included in the index universe is expected to increase. These developments were disclosed in a press release filed with the Securities and Exchange Commission.

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