Invesco DB Base Metals Fund to update underlying index methodology in November

Published 26/09/2025, 13:16
Invesco DB Base Metals Fund to update underlying 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 see changes to the methodology of its underlying index, the DBIQ Optimum Yield Industrial Metals Index Excess Return, effective November 10, 2025. According to a statement included in a press release and filed with the Securities and Exchange Commission, these changes are being implemented by Deutsche Bank AG, the index provider.

The announced modifications include an expansion of the eligible commodity universe, which will now be determined annually based on liquidity and economic importance. The number of commodities included in the index universe is expected to increase under the new methodology. InvestingPro data shows the fund maintains excellent liquidity management with a current ratio of 407.97, suggesting strong capability to meet its obligations.

The index’s Optimum Yield methodology will be adjusted to exclude contracts with limited liquidity. In addition, the static allocations to commodities will be replaced by a rules-based annual review, intended to better reflect current global production and market liquidity.

Weight limits will be introduced at each annual rebalance, placing caps and floors on sector and single commodity exposures to reduce concentration risk. The methodology will also allow for intra-year rebalancing events if a significant deviation from target weights is observed during monthly reviews. According to InvestingPro analysis, the fund demonstrates low price volatility with a beta of 0.57, which could appeal to risk-conscious investors. Subscribers can access 12+ additional ProTips and detailed metrics for comprehensive analysis.

Invesco stated that these changes will not affect the investment objective of the fund. The information is based on a press release statement and the company’s filing with the SEC.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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