Company: DBE
Filing Date: 2025-11-10
Form Type: 424B3
Source: 0001193125-25-273341
Chunk: 13

Company: Invesco DB Energy Fund
Filing Date: 2025-11-10
Form: 424B3
Chunk 13
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Risk Factors” section below for a discussion of the risks associated with a “super contango” market. Conversely, where there is a downward-sloping price curve for futures contracts, the implied roll yield is expected to be positive, which is a market condition called backwardation. Backwardation exists when prices are higher for contracts with shorter-term expirations than those with longer-term expirations, a condition that is typically associated with commodities that are consumed quickly instead of being held in storage. Rolling in a backwardated market will tend to enhance returns from futures trading. The Index’s selection of a new futures contract on each Index Commodity in such market conditions is designed to maximize the impact of positive roll yield. The Index takes the impact of implied roll yield into consideration by selecting, as the replacement for an expiring futures contract, from a predetermined set of eligible contracts the futures contract that generates the most favorable implied roll yield under the current market conditions. The Managing Owner may determine to invest in other futures contracts if at any time it is impractical, including in scenarios wherein the futures market for an Index Contract is thinly traded, or inefficient to gain full or partial exposure to the Index Commodities through the use of Index Contracts. These other futures contracts may or may not be based on the Index Commodities. When they are not, the Managing Owner may seek to select futures contracts that it reasonably believes tend to exhibit trading prices that correlate with the Index Contract. The Fund trades Index Contracts that are subject to position limits under regulations of the CFTC or futures exchange rules, as applicable. As the Fund, which is designed to track an Index with more than one underlying commodity, approaches or reaches position limits with respect to an Index Commodity, the Fund may commence investing in Index Contracts that reference other Index Commodities. In those

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Summary Information (cont’d) circumstances, the Fund may also trade in futures contracts based on commodities other than Index Commodities that the Managing Owner reasonably believes tend to exhibit trading prices that correlate with an Index Contract. The Index Sponsor calculates the Index on an excess return basis, which is the combined return based on the spot prices of Index Commodities and the roll yield from trading futures contracts on Index Commodities. The excess return basis calculation reflects the change in market value over time, whether positive or negative, of the applicable underlying commodity futures only. Unlike the Index’s methodology, the Fund also holds as collateral securities that are expected to generate income, including Treasury Securities and shares of money market mutual funds and T-Bill