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

Company: Invesco DB Oil Fund
Filing Date: 2025-11-10
Form: 424B3
Chunk 10
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, 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 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 (defined herein) 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 Commodity”). The Index is composed of the notional amount of the underlying Index Commodity. The closing level of the Index is calculated by the Index Sponsor based on the closing price of the futures contracts on the Index Commodity (“Index Contracts”) and the notional amount of the Index Commodity. 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

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Summary Information (cont’d) longer period. Rolling in a contangoed market will tend to cause a drag on returns from futures trading. The Index’s selection of a new futures contract on the Index Commodity in such market conditions is designed to minimize the impact of negative roll yield. Additionally, in instances of particular market stress, futures contracts for the month next to occur (e.g., the December 2025 futures contract available in November 2025) may trade significantly lower than futures contracts with delivery in later months, typically indicating