DBA
Industry:
Capital Markets

DESCRIPTION

Invesco DB Agriculture Fund is an ETF that gives investors exposure to agricultural commodity prices without directly trading futures. The Fund holds futures contracts on a basket of 13 agricultural commodities — including corn, live cattle, soybeans, lean hogs, wheat, sugar, cotton, cocoa, and coffee — and trades on NYSE Arca under a standard ETF structure, making it accessible through ordinary brokerage accounts. Shares are created and redeemed by Authorized Participants in blocks of 50,000 shares, with retail and institutional investors then trading in the secondary market. The Fund generates returns through two sources: changes in the prices of its futures contracts, and interest and dividend income from U.S. Treasury obligations, money market funds, and T-Bill ETFs held as collateral. The Fund charges a management fee of 0.85% per annum. A core element of the Fund's strategy is its rules-based approach to rolling expiring futures contracts — rather than rolling on a fixed schedule, the Fund selects replacement contracts based on implied roll yield, aiming to reduce contango drag or maximize backwardation benefits. The underlying index is owned and calculated by Deutsche Bank, which controls commodity composition and conducts annual rebalancing based on futures trading liquidity and global production volumes. Invesco, as Managing Owner through Invesco Capital Management, licenses the index but has no influence over its construction.

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