DBC Fund Description

The PowerShares DB Commodity Index Tracking Fund tracks an index of 14 commodities. It uses futures contracts to maintain exposure and selects them based on the shape of the futures curve to minimize contango.

DBC ETF.com Insight

[As of 11/01/13] DBC thoughtfully addresses the 2 thorniest problems in commodities: weighting and roll costs. The most-marketlike approach, production weighting, allocates heavily toDBC mitigates roll costs but sacrifices responsiveness to price movements consumables like oil at the expense of storables like gold. DBC threads the needle by capping energy’s economic dominance at 60%, yet allowing for a diversified portfolio. DBC turns short-term contracts into a long-term investment carefully, by picking the cheapest of the tenors available for each of its contracts. This mitigates roll costs, but in cases where DBC selects long-term contracts, it can sacrifice responsiveness to short-term price movements. Note that DBC’s approach has trailed our vanilla benchmark over the past 12 months. DBC’s 88 bp expense ratio creates a high hurdle to break-even, but its awesome liquidity helps it win Analyst Pick. Expect a K-1 at tax time.

1 Year

Performance [as of 08/27/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years

DBC
-2.84% -4.77% -2.73% -7.49% -5.54% 1.85% -4.77%
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

DBC Top 10 Contracts

DBC Summary Data

Invesco PowerShares

A company that produces and manages ETFs.

02/03/06

The first date of a fund's operations, as documented by the issuer.

Commodities Pool

The organizational structure of the fund or ETN.

0.88%

The net total annual fee a fund holder pays to the issuer.

$5.48 B

The market value of total assets that a fund has accumulated and now manages on behalf of investors.

$50.07 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

0.04%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 60 days, as a percent.

DBC Portfolio Data

Futures

This details how the fund accesses its commodities, whether holdings are physically–held or futures based.

Optimized

Rolling strategy is the process by which a fund deals with contract expiration.

Yearly

How often a fund rebalances its holdings back to the stated target weights in the prospectus.

-0.16%

This is the weighted average decay of all contracts held by a fund, calculated from the current contract to the current front month contract.

-0.28%

This is the weighted average decay of all contracts held by a fund, calculated from the current contract to each holding's preceding contract.


14

The number of single commodities represented in the fund holdings.

DBC Index Data

DBIQ Optimum Yield Diversified Commodity Index Excess Return

This is the benchmark an ETF is desigend to track or replicate.

Fixed

A set of rules that the underlying index provider follows to weight its constituent securities.

Fixed

A set of rules that the underlying index provider follows to select its constituent securities.

S&P GSCI

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

Related ETFs to DBC

SBV, GSP, USCI, DJP, UCI

ETFs from within the same segment or closely related segments with similar investment objectives or market exposures.

DBC ETF.com Efficiency Insight

[As of 11/01/13] DBC is an efficient, if expensive, fund with massive AUM and a long track record. It charges 88 bps, and real-world holding costs tend to be a bit higher still at 93 bps. Still, that’s decent tracking considering the fee. For taxable investors, gains on commodities pools are taxed at blended rates, marked to market annually and reported on K-1s, not 1099s.

Total Return

Performance [as of 03/21/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years

DBC
-1.68% 0.39% 0.39% -4.98% -4.80% 4.25% 0.39%

DBC (NAV)
-1.57% 0.22% 0.62% -5.01% -4.78% 4.37% 0.22%

DBIQ Optimum Yield Diversified Commodity Index Excess Return
-1.46% 0.41% 0.79% -4.07% -4.03% 4.98% 0.41%

S&P GSCI
-1.25% 0.94% 1.71% 0.02% -2.98% 5.80% 0.94%
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

DBC Portfolio Management

0.88%

The net total annual fee a fund holder pays to the issuer.

-0.98%

Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results.

-0.27%

Largest deviation in a positive direction of a fund's returns vs. its underlying index over the past 12 months.

-2.64%

Largest deviation in a negative direction of a fund's returns vs. its underlying index over the past 12 months.

DBC Tax Exposure

27.84% / 27.84%

The maximum long-term and short-term U.S. tax rates applicable to a realized capital gain.

--

The average capital gains paid out to shareholders in the past 36 months, measured as a percent of net asset value (NAV) at the time.

Yes

ETFs that are structured as commodities pools and classified as limited partnerships by the IRS will issue K-1 forms to holders.

DBC Fund Structure

Commodities Pool

The organizational structure of the fund or ETN.

No

An indicator of whether a fund uses over-the-counter derivatives such as swaps or forwards to achieve its objectives.

N/A

An indicator of whether or not a fund actively lends its portfolio holdings.

N/A

The institution responsible for providing the return of the stated index and whose credit is the sole backing of the ETN.

N/A

The risk of default by the ETN counterparty.

Low

The likelihood that an issuer will shut down a fund for business or regulatory reasons.

Daily

The frequency of an issuer's disclosure of all fund holdings.

DBC ETF.com Tradability Insight

[As of 11/01/13] DBC is the most liquid ETF in its segment, and can be traded, quickly and cheaply by investors of all stripes. It boasts a median daily volume of over $55M and average bid/ask spread of about 3 bps. On average, over 9 creation units’ worth of shares trade per day, so it’s no surprise that DBC earns a perfect block liquidity score: Liquidity providers are more than willing to offer up size at low cost due to the ease of hedging the fund.

Average Spread

Premium/Discount

Volume

DBC ETF.com/ Block LiquidityAs of 08/28/2014

5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of DBC. DBC is rated a 5 out of 5.

DBC Tradability

1,936,492

It is the daily number of shares traded, averaged over the past 45 trading days.

$50.07 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

1,082,211

Median number of shares traded over the past 45 trading days.

$28.89 M

Median dollar value of shares traded over the past 45 trading days.

0.04%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent.

$0.01

The difference between the highest and lowest posted prices for an ETF, averaged over the past 45 days, in dollars.

-0.04%

The middle value in the ranked set of all premium/discount values over a maximum 12-month period.

0.27% / -0.35%

The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a maximum 12-month period.

None

This flags whether there is currently a systemic issue that has restricted the ability to create or redeem shares of the fund. This may be imposed by the fund's issuer, or by external circumstances.

100.00%

The percent of time that the underlying securities of an ETF are open to trading while US exchanges are open.

200,000

The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund.

5.41

The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots.

0.01%

The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit.

12,635

The total number of net outstanding options contracts for an ETF.

$24.96

The total market value of the assets that an ETF holds less fund expenses.

5

An estimate of liquidity for the underlying baskets of securities, scaled 1 to 5.

DBC ETF.com Fit Insight

[As of 11/01/13] DBC isn’t plain vanilla: It deliberately strays from front-month contract selection and production-weighting. Investors expecting short-term pops in spot prices might be disappointed when DBC holds the “out months” (longer-dated contracts tend to be less sensitive to spot prices) but may like the protection when spot plummets. DBC’s underweight to energy has internal tilts, with less weight in oil and more to gasoline and heating oil. DBC’s biases haven’t paid off lately as the fund lags our vanilla benchmark.

DBC Sector Breakdown

DBC Segment Benchmark
71.05% 56.25%
13.95% 22.23%
6.08% 11.57%
2.77% 9.96%
6.14% 0.00%

DBC Performance Statistics

0.88

The degree to which the fund and its segment benchmark move up and down in unison.

0.81

The sensitivity of the returns of the fund to the movement of the ETF.com segment benchmark. Beta of 1.0 means magnitude of fund returns equals that of IU benchmark returns.

0.72

The comparison of a fund's return to our benchmark's for days when the benchmark is up. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

0.94

The comparison of a fund's return to our benchmark's for days when the benchmark is down. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

0.01%

A measure of the variability between the fund's returns and the ETF.com segment benchmark returns on days when the fund underperforms the benchmark.

DBC Top 5 Collateral Investments

No data available

DBC Expected Decay

DBC Segment Benchmark
Commodity Weight Decay
to Front
Decay to
Preceding
Commodity Weight Decay
to Front
Decay to
Preceding
Crude Oil 12.65% -0.22% -1.25% Crude Oil 24.97% -0.20% -2.33%
Brent Crude 12.46% -0.37% -0.63% Brent Crude 22.96% -0.06% -0.66%
RBOB Gasoline 12.44% -1.52% -2.20% RBOB Gasoline 6.03% 0.00% 0.00%
Heating Oil 12.41% -0.03% -0.34% Heating Oil 5.89% -0.01% -0.16%
Gold 8.11% 0.00% 0.00% Gold 2.44% 0.00% 0.00%
Natural Gas 6.29% 0.40% 0.83% Natural Gas 3.07% -0.01% -0.13%
Wheat 5.72% 0.02% 0.11% Wheat 3.98% -0.00% -0.03%
Corn 5.63% 0.01% 0.02% Corn 3.56% 0.04% 0.22%
Soybeans 5.57% -0.92% -1.68% Soybeans 2.84% -0.05% -0.31%
Sugar 5.31% 0.12% 0.74% Sugar 1.37% 0.03% 0.19%
Weighted Average
Expected Decay:



Weighted Average
Expected Decay:


Expected Decay: Decay-to-front measures the annualized price difference between the price of a futures contract and the current front-month futures price for the commodity. Decay-to-front shows the annualized expected cost (appreciation) should the front month price not change between now and contract expiration. We annualize this cost to make it uniform for all contract months. Decay-to-preceding similarly measures the annualized price difference between a futures contract and the contract before it on the curve and shows the annualized expected cost (appreciation) should the spot prices and the shape of the curve remain intact. The figures are presented as decay, so a negative number implies an expected gain and a positive number implies an expected loss. Front month positions are evaluated against the next available contract ahead of it on the curve.

Term Structure