Company: DBO
Filing Date: 2025-11-10
Form Type: 424B3
Source: 0001193125-25-273330
Chunk: 53

Company: Invesco DB Oil Fund
Filing Date: 2025-11-10
Form: 424B3
Chunk 53
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 excess return, or unfunded, basis. The Index is rolled in a manner which is aimed at potentially maximizing the roll benefits in backwardated markets and minimizing the losses from rolling in contangoed markets (or in the rare instances of “super contangoed” markets). Index Composition The Index is intended to reflect the economic performance of investing in futures contracts on the crude oil sector. Commodity futures quoted in US Dollars and listed on major US and European exchanges are eligible for inclusion in the Index. The Index Sponsor selects the futures contract with the highest implied roll yield, aiming to maximize the potential roll benefits in backwardated markets and minimize the loss from rolling in contango markets. If two futures contracts have the same implied roll yield, the futures contract with the minimum number of months to the exchange expiry month is selected. “Implied roll yield” is calculated by dividing the closing price of the commodity futures contract which is to be notionally

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exited by the closing price of the relevant futures contract, raised to the power of one divided by the fraction of the year between the base futures contract and the relevant eligible futures contract, minus one. On the first Index Business Day of each month, the futures contract currently included in the Index is tested for continued inclusion in the Index based on its delivery month. If the delivery month for the contract is the next calendar month, a new contract is selected. This takes place between the second and sixth Index Business Day of the month. As of November 10, 2025, the single Index Commodity comprising the Index is Light, Sweet Crude Oil (WTI). The Index methodology includes provisions for the replacement of futures contracts as they approach maturity. This replacement takes place over a period of time in order to lessen the impact on the market for the futures contracts being replaced. With respect to the Index Commodity, the Fund employs a rule-based approach when it ‘rolls’ from one futures contract to another. Rather than select a new futures contract based on a predetermined schedule (e.g., monthly), the Index Commodity rolls from one contract to another futures contract that is intended to generate the most favorable ‘implied roll yield’ under prevailing market conditions. Where there is an upward-sloping price curve for futures contracts, the implied roll yield is expected to be negative, which is a market condition called “contango.” Contango exists when contract prices are higher in distant delivery months than in nearer delivery months, typically due to costs associated with storing a given physical commodity for a longer period. Rolling