Invesco DB Energy Fund to update index methodology and commodity universe

The Invesco DB Energy Fund (NYSE Arca:DBE), a series of the Invesco DB Multi-Sector Commodity Trust currently trading at $19.52 with a market capitalization of $54.67 million, announced Friday that changes will be made to the DBIQ Optimum Yield Energy Index Excess Return, which the fund seeks to track. The fund, which has delivered a 13.36% return over the past year and offers a 6% dividend yield according to InvestingPro data, will implement these changes on November 10, 2025, based on a Securities and Exchange Commission filing.

Deutsche Bank AG, the index provider, will implement several modifications. The first update will expand the index’s commodity universe, with eligible commodities determined annually based on liquidity and economic importance. The number of commodities included in the index universe is expected to increase under the new methodology.

The second change involves modifying the Optimum Yield methodology to eliminate contracts with limited liquidity. The third adjustment will introduce a rules-based annual review of base weights and commodities, replacing the current static allocations. This review aims to better reflect global production and market liquidity.

Additionally, annual weight limits will be implemented at each rebalance to set caps and floors for sectors and single commodities, aiming to reduce concentration risk. An intra-year rebalancing mechanism will also be introduced, which will trigger a rebalance if a large deviation from target weights occurs on a monthly observation date.

According to the statement, these changes will not affect the fund’s investment objective. The information in this article is based on a press release statement included in the SEC filing.

In other recent news, Invesco DB Energy Fund announced updates to the DBIQ Optimum Yield Energy Index Excess Return, which it tracks. These changes, set to take effect on November 10, 2025, involve modifications implemented by Deutsche Bank AG, the index provider. The updates will expand the commodity universe, with eligible commodities now determined annually based on liquidity and economic importance. The number of commodities included in the index universe is expected to increase under this new methodology. This development could potentially impact the fund’s composition and performance. Investors may want to monitor how these changes affect the fund’s alignment with market conditions. The adjustments reflect a strategy to adapt to evolving economic landscapes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.