Commodity indices

Commodity indices

Indices measuring the price and performance of physical commodities, often by the price of futures contracts for the commodities that are listed on commodity exchanges.

Commodity Indices

Indices that track the price of different types of commodities. A commodity index may track commodities directly, or indirectly by tracking futures contracts for certain commodities. For example, commodity indices may track energy products or currencies, or may tracks futures contracts in either of those. Commodity indices operate much like exchange-traded funds or mutual funds in day-to-day trading: investors may buy, sell, or short sell shares in commodity indices as if they were stocks. An advantage to trading commodity indices is that it gives investors access to commodity markets without needing to buy or accept delivery on the underlying commodities.
References in periodicals archive ?
The Securities and Exchange Board of India has permitted exchanges to launch futures trading in commodity indices.
The World Bank said all main commodity indices that it tracks-energy, non-energy (agriculture, fertilizers, and metals and minerals), and precious metals-were expected to decline this year compared to last year due to persistently elevated supplies.
The suite of commodity indices launched by ETFS Indices includes four composite strategy indices based on commodity futures prices.
During the first decade of the 2000s, nearly every market included in the major commodity indices experienced an increase in open interest, suggesting that these markets were functioning properly during the period when investment flows into commodity investments were growing rapidly.
Since 2010, investor momentum has been behind Brent, as this has increased its weighting in leading commodity indices the S&P and DJ-UBS at the expense of WTI.
Since January 2005, commodities have broadly outperformed traditional equity indices, but there has been diverse performance among commodity indices. Specifically, the MLCX TR index outperformed the Standard & Poor's US 500 TR index by 2.5 percent on average during the last seven years.
The index has shown little correlation with the respective underlying equity and commodity indices.
As per the agreement signed last week, Structured Solutions will create new commodity indices based on DGCX commodity prices primarily targeted at the global investment banking and fund industry.
According to the agreement the German firm will create new commodity indices based on DGCX commodity prices mainly targeted at the global investment banking and fund industry.
As per the agreement signed this week, Structured Solutions will create new commodity indices based on DGCX commodity prices primarily targeted at the global investment banking and fund industry.
"We are pleased to partner with Structured Solutions for the development of a series of strategic initiatives and products, including new commodity indices to help manage fund portfolios," he added.
Index-linked notes may be issued under the programme but S&P does not rate bonds if principal payments depend on changes in stock or commodity prices, or stock or commodity indices.

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