DBC tracks the DBIQ Optimum Yield Diversified Commodity Index Excess Return and holds futures on 14 major commodities across energy, metals and agriculture, with energy making up the largest weight. The index selects contracts that aim to reduce the cost of rolling futures when markets are in contango. Commodities have often done well when inflation is rising and supplies are tight, but returns have been volatile and can be negative for long periods. The fund is a futures-based vehicle and issues a Schedule K-1 for tax purposes.
