Invesco DB Precious Metals Fund to update index methodology in November

Published 26/09/2025, 13:30
Invesco DB Precious Metals Fund to update index methodology in November

Invesco DB Precious Metals Fund (NYSE Arca:DBP), currently trading near its 52-week high of $86.80 with an impressive 42.31% year-to-date return according to InvestingPro, will undergo changes to its benchmark index methodology effective November 10, 2025, according to a statement released Friday based on a SEC filing.

The fund, which maintains an excellent financial health score of 4.05 on InvestingPro and demonstrates remarkably low volatility with a beta of 0.15, tracks the DBIQ Optimum Yield Precious Metals Index Excess Return, which is administered by Deutsche Bank AG. The upcoming changes to the index include several adjustments:

  • The selection of eligible commodities will be determined annually, taking into account liquidity and economic importance.
  • The Optimum Yield methodology will be modified to exclude contracts with limited liquidity.
  • The fund will move from static allocations to a rules-based annual review of base weights and commodities, reflecting current global production and market liquidity.
  • Sector and single commodity caps and floors will be introduced during the annual rebalance to reduce concentration risk.
  • An intra-year rebalancing mechanism will be added, allowing for adjustments if a large deviation from target weights occurs on monthly observation dates.

The filing stated that these changes will not affect the fund’s investment objective.

This information is based on a press release statement made in a SEC filing.

In other recent news, Invesco DB Precious Metals Fund announced upcoming changes to the index it tracks. Effective November 10, 2025, the fund will modify the DBIQ Optimum Yield Precious Metals Index Excess Return. These changes, implemented by Deutsche Bank AG, were disclosed in a filing with the Securities and Exchange Commission. The adjustments include an annual determination of eligible commodities, focusing on liquidity and economic importance. Additionally, the Optimum Yield methodology will be updated to exclude contracts with limited liquidity. Static commodity allocations will be replaced with a rules-based annual review. This aims to better reflect global production and market liquidity. These developments are part of the fund’s efforts to enhance its tracking index.

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