The Invesco DB Agriculture Fund is a commodity investment fund managed by Invesco Capital Management LLC that aims to provide investors with returns linked to the performance of the agricultural sector. This is primarily executed by tracking the DBIQ Diversified Agriculture Index Excess Return™, which reflects changes in the market value of various agricultural commodities such as corn, soybeans, wheat, and sugar. The Fund operates by investing in futures contracts related to these commodities and other financial instruments, including U.S. Treasury Obligations, to achieve its investment objectives.
Established in 2006, the Fund has a unique structure that allows it to invest directly in futures contracts and manage collateral using cash management strategies. The operational model includes position management related to commodity trading and compliance with regulatory requirements under the Commodity Exchange Act. Additionally, the Fund emphasizes risk management by adjusting investments as market conditions evolve, aiming for optimal exposure to index commodities while minimizing the impact of market fluctuations.