so is disadvantageous. Futures markets are highly volatile in general, and may become more volatile during periods of market or economic volatility, and the use of or exposure to futures
contracts may increase volatility of a Fund’s NAV.
In addition, an FCM may impose margin requirements in addition to those imposed
by the clearinghouse. Margin requirements are subject to change on any given day, and may be raised in the future on a single day or on multiple or successive days by either or both of the clearinghouse and the FCM. High margin requirements could
prevent a Fund from obtaining sufficient exposure to futures contracts and may adversely affect the Fund’s ability to achieve its investment objective. An FCM’s failure to return required margin to a Fund on a timely basis may cause the
Fund to delay redemption settlement dates or restrict, postpone, or limit the right of redemption.
Futures contracts are subject to
liquidity risk. An FCM may impose risk limits on a Fund, which restrict the amount of exposure to futures contracts that the Fund can obtain through the FCM. If the risk limits imposed by an FCM do not provide sufficient exposure, a Fund may not be
able to achieve its investment objective.
Furthermore, effective immediately, the following disclosure is added after the first full paragraph in the
risk factor titled “There May Be Circumstances That Could Prevent a Fund from Being Operated in a Manner Consistent with its Investment Objective” on page 25 of the section of the Prospectus titled “Risk Factors—Other
Risks”.
Additionally, natural or environmental disasters, such as earthquakes, fires, floods, hurricanes, tsunamis and other severe
weather-related phenomena generally, and widespread disease, including pandemics and epidemics, have been and may be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies,
interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Given the increasing interdependence among global economies and markets, conditions in one country, market, or
region are increasingly likely to adversely affect markets, issuers, and/or foreign exchange rates in other countries, including the U.S. Any such events could have a significant adverse impact on the value of a Fund’s investments and could
result in increased premiums or discounts to the Fund’s NAV. Additionally, the Funds rebalance their portfolios in accordance with the applicable Index, and, therefore, any changes to an Index’s rebalance schedule will result in
corresponding changes to the relevant Fund’s rebalance schedule.
Finally, effective immediately, the following risk factor is added to the section
of the Prospectus titled “Risk Factors—Other Risks” after the last paragraph beginning on page 26.
Risk that the
Invesco DB Oil Fund Will Experience Losses As a Result of Global Economic Shocks
In March 2020, U.S. equity markets entered a
bear market in the fastest such move in the history of U.S. financial markets. Although oil prices rallied during 2019 with higher prices supported by continued compliance with OPEC+ production cuts, US sanctions against Venezuela and Iran, and
tension in the Gulf region, prices fell to an 18-year low in March 2020. Contemporaneous with the onset of the novel coronavirus (COVID-19) pandemic in the US, oil
experienced shocks to supply and demand, impacting the price and volatility of oil. The global economic shocks being experienced as of the date hereof may cause significant losses to the Invesco DB Oil Fund.
Shares of the Invesco DB Oil Fund, Invesco DB Precious Metals Fund, Invesco DB Gold Fund and Invesco DB Base Metals Fund are listed on NYSE Arca, Inc. under
the symbols “DBO,” “DBP,” “DGL” and “DBB,” respectively.
Investing in the Shares involves significant risks.
See “RISK FACTORS” starting on page 14 of the Prospectus.
