DBP Profile
DB Precious Metals Fund Invesco (DBP) is an exchange-traded fund (ETF) that seeks to track the performance of the DBIQ Optimum Yield Precious Metals Index Excess Return. The fund invests in physical gold and silver, with a 80% allocation to gold and a 20% allocation to silver. The index uses a rules-based methodology to select the contracts on the COMEX and NYMEX exchanges that are expected to have the highest implied roll yield, which is the return an investor can expect from rolling over futures contracts. The fund seeks to provide investors with exposure to precious metals while minimizing the negative effects of contango, which is a situation where the futures price is higher than the spot price, leading to losses when contracts are rolled over.
DBP is traded on the NYSE Arca exchange and charges a management fee of 0.75%. As of February 2023, the fund has over $700 million in assets under management and has returned around 1% annually over the past five years. DBP is considered a useful investment for investors seeking exposure to precious metals but do not want to invest in physical bullion. However, like all commodity-based investments, DBP is subject to fluctuations in the prices of gold and silver, which can be volatile and unpredictable.
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