# Invesco DB Agriculture Fund > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/fi/companies/Invesco DB Agriculture Fund). ## Overview Invesco DB Agriculture Fund is a U.S.-listed commodity ETF structured as a Delaware statutory trust series that seeks to track the DBIQ Diversified Agriculture Index Excess Return. It does this primarily by holding and rolling agricultural futures contracts, with collateral invested in U.S. Treasury obligations, money market funds, and T-Bill ETFs for margin and cash management. ## Products & services • Agriculture futures-based exchange-traded fund • Exposure to the DBIQ Diversified Agriculture Index Excess Return • Creation Units for authorized participants • Collateral management via U.S. Treasuries and money market funds • T-Bill ETF and cash management exposure - **Agriculture futures exposure** (85%) — Core exposure through futures contracts tied to agricultural commodities in the DBIQ index. - **Cash and collateral investments** (10%) — Treasury obligations, money market mutual funds, and T-Bill ETFs used for margin and liquidity. - **Fund management and licensing economics** (5%) — Management fee, index licensing, and operating expense structure supporting the fund wrapper. - Agriculture futures-based exchange-traded fund - Exposure to the DBIQ Diversified Agriculture Index Excess Return - Creation Units for authorized participants - Collateral management via U.S. Treasuries and money market funds - T-Bill ETF and cash management exposure ## Customers The fund is sold to eligible financial institutions, specifically authorized participants that can create and redeem shares in large blocks. End investors are typically institutions and retail investors accessing the fund through the exchange, seeking diversified agricultural commodity exposure without trading futures directly. - **Authorized Participants** (primary) — Financial institutions that create and redeem Creation Units and provide primary market liquidity. - **Institutional investors** (primary) — Asset managers, hedge funds, and other institutions buying agriculture exposure for allocation or hedging. - **Retail exchange investors** (secondary) — Investors buying shares on NYSE Arca for simple access to agricultural commodities. - Authorized Participants create and redeem 50,000-share Creation Units - Institutional investors use it for commodity allocation and hedging - Retail investors access agriculture exposure through exchange trading - Portfolio managers use it to diversify beyond equities and bonds - Investors buy it for liquid, rules-based commodity exposure ## Geography The fund is U.S.-domiciled, listed on NYSE Arca, and operates through U.S.-based service providers, including the managing owner in Illinois and The Bank of New York Mellon as administrator/custodian. Its economic exposure is global because the underlying agricultural commodities are priced in international futures markets and affected by weather, trade policy, and supply-demand conditions worldwide. - U.S.-domiciled Delaware statutory trust - Listed on NYSE Arca in the United States - Managing owner offices in Downers Grove, Illinois - Uses U.S.-based custodian, administrator, and clearing brokers - Commodity exposure is global even though the fund is U.S.-based ## Strategy The fund’s strategy is to track the DBIQ Diversified Agriculture Index by holding futures contracts and managing collateral efficiently. It also seeks to reduce tracking friction through the index’s optimum yield roll methodology and by using Treasury and money-market holdings to support margin and cash needs. - **Maintain tight index tracking** (short-term) — The fund’s value proposition depends on matching the agriculture index rather than outperforming it. - **Preserve liquidity and operational continuity** (short-term) — The fund must meet margin calls and support creations/redemptions in volatile commodity markets. - **Control operating drag** (medium-term) — Fees and expenses reduce returns, so the fund must keep tracking and transaction costs contained. - Track the DBIQ Diversified Agriculture Index as closely as possible - Use futures contracts rather than physical commodity ownership - Manage roll yield and contango/backwardation effects - Hold Treasuries and money market assets for margin and liquidity - Maintain exchange-traded access through Creation Units ## Risks The fund is exposed to the inherent volatility of agricultural futures, where weather, crop disease, trade policy, and supply disruptions can move prices sharply. It also faces structural ETF risks such as tracking error, creation/redemption disruptions, position limits, and dependence on third-party brokers, custodians, and clearing systems. - **Commodity futures price volatility** [high] — Returns depend on agricultural commodity prices, which are affected by weather, disease, trade policy, and supply-demand shocks. - **Tracking error versus the index** [high] — Futures roll costs, market dislocations, and cash drag can cause the fund to underperform or outperform the target index. - **Position limits and creation constraints** [medium] — CFTC or exchange limits can restrict futures exposure and impair the ability to issue Creation Units. - **Counterparty and clearing broker failure** [high] — The fund relies on commodity brokers, FCMs, and clearing organizations to segregate and safeguard assets. - **Operational and cyber disruption** [medium] — Third-party service providers and exchanges are critical to trading, custody, and settlement. - Agricultural futures are highly volatile and can move sharply - Tracking error can cause returns to diverge from the index - Position limits may restrict new creations or reinvestment - Broker, custodian, or clearing failure could impair asset access - Cyber or system outages can disrupt trading and operations ## Accounting The fund’s results are driven by fair value changes in futures positions and by income from Treasury and money market holdings, so mark-to-market accounting is central to reported performance. Because the fund is an ETF-style commodity pool, creation/redemption activity, brokerage fees, and margin balances can also create quarter-to-quarter swings in cash flow and net income. - **Fair value measurement of futures contracts** — Primary driver of reported gains and losses - **Income from Treasury obligations and money market funds** — Supports NAV performance during low commodity return periods - **Margin and collateral accounting** — Can materially change operating cash flows - **Expense accruals and management fee** — Direct drag on NAV and investor returns - Futures are marked to market, driving realized and unrealized gains/losses - Treasury and money market income offsets fund expenses - Creation/redemption flows affect cash, margin, and liquidity balances - Brokerage and exchange fees reduce returns and operating results - Fair value estimates matter for collateral and derivative positions --- *Last updated: 2026-04-28T20:16:32.847214+00:00*