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

Company: Invesco DB Energy Fund
Filing Date: 2025-11-10
Form: 424B3
Chunk 11
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 Fund does not insulate Shareholders from certain risks, including volatility in the spot prices of the Index Commodities (defined herein). In addition, the Index utilizes an Optimum Yield TM methodology, which seeks to minimize the effects of negative roll yield that may be experienced by conventional commodities indexes. “Negative roll yield” is a term that describes the adverse impact of an upward-sloping price curve for futures contracts, which makes it more expensive to replace expiring contracts with new contracts. However, the Optimum Yield TM methodology may not be successful, and in such instances, the Fund, by tracking the Index, may be negatively impacted. The Fund pursues its investment objective by investing in a portfolio of exchange-traded futures on commodities in the energy sector. Deutsche Bank Securities, Inc. (the “Index Sponsor” or “DBSI”), the sponsor of the Index, selects and weights commodities in the Index on an annual basis based on (i) the value and liquidity of the market for associated commodity futures contracts and (ii) their production volume (in order to factor in the relative importance of the commodity in the global economy). Commodity futures quoted in US Dollars and listed on major US and European exchanges are eligible for inclusion in the Index. Eligible commodities are selected based on their Three-Year Total Dollar Volume Average (i.e., commodities are initially screened for inclusion based on their relative three-year “Total Dollar Volume” traded, which is calculated by multiplying the total volume of futures traded during the last one-year period by the average close price of the front month contract on each month end during that one-year period). Each commodity’s three-year Total Dollar Volume traded is calculated in proportion to the three-year Total Dollar Volume traded of all commodities within its sector to determine its initial sector liquidity rate. A commodity with a proportionate weight of less than 2% (or 1.5% for a commodity included at the last rebalance) within its sector is excluded from the Index. Each remaining commodity’s three-year Total Dollar Volume traded is calculated in proportion to the three-year Total Dollar Volume traded of all eligible commodities (“Filtered Commodity Weight”). Commodity weights in the Index are determined by the DBIQ Optimum Yield Diversified Commodity Index Excess Return™ (the “Parent Index”). The Parent Index determines production weights for each eligible commodity based on the total dollar amount of the commodity produced within the year in proportion to the sum of the production dollar amounts within the energy sector (“Production Weights”). The weight of each commodity in the Index is