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New Commodity Index from BNP Paribas
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MUMBAI: French banking major BNP Paribas launched on Nov 9 a new commodity index-- Commodity Market Representative Index. The brand new index a weighted basked of commodity futures contracts with different maturities for individual commodities.
BNP said the new index gives investors exposure to commodities beyond just short-term futures contracts as demand is growing for products providing exposure to commodities such as oil and precious metals.
The new BNP Paribas index has 25 constituents, including energy, metals and agriculture.
Check out here the other major global commodity indices:
The Roger International Commodity Index (RICI): RICI is a commodity index developed by Jim Rogers in 1998. It represents the value of a basket of 36 commodities from 10 exchanges used in the global economy.
The Dow Jones-AIG Commodity Index [DJ-AIGCI]: DJ-AIGCI is a broadly diversified index that allows investors to track commodity futures through a single, simple measure.
The DJ-AIGCI is composed of futures contracts on physical commodities. The index is designed to minimize concentration in any one commodity or sector. It currently has 19 commodity futures in seven sectors. No one commodity can comprise less than 2% or more than 15% of the index, and no sector can represent more than 33% of the index [as of the annual weightings of the components]. The weightings for each commodity included in DJ-AIGCI are calculated in accordance with rules that ensure that the relative proportion of each of the underlying individual commodities reflects its global economic significance and market liquidity. Annual rebalancing and reweighting ensure that diversity is maintained over time.
The Goldman Sachs Commodity Index (GSCI): GSCI is a world-production weighted index composed of 24 commodity futures contracts. The index is a composite index of commodity sector returns and represents an unleveraged investment through broadly diversified long positions in commodity futures. The GSCI primarily serves as a benchmark for investment in the commodity markets and as a measure of commodity performance over time. It is a tradable index that is readily available to market participants of the Chicago Mercantile Exchange. The GSCI was developed and is calculated by Goldman Sachs. Futures of the GSCI use a multiple of 250. The index contains a much higher exposure to energy than other commodity price indices such as the Dow Jones–AIG Commodity Index.
The Standard & Poor's Commodity Index (SPCI): SPCI is a commodity price index that measures the price changes in a cross section of agricultural and industrial commodities with actively traded U.S. futures contracts, stretching across five sectors - Energy, Metals, Grains, Livestock, and Fibers & Softs. Only commodities that are consumed for industrial use are included in the index. Weights in the index are determined by the dollar value of Commercial Open Interest (COI) for each component commodity, and rebalanced annually each February.
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