Posts Tagged ‘CRB index’

LIST OF LEADING COMMODITY INDICES

 

Commodity index is exactly what the name suggests as it represents the price movement of basket of commodities. The main concept behind composite commodities index is to cumulate economically appropriate materials into single and often tradable index.

LIST OF LEADING COMMODITY INDICES

Reuters/Jefferies CRB Index: The CRB index, which began trading on the New York Futures Exchange in 1986, is the oldest index and is designed to provide a more liquid and economically relevant benchmark that will provide a timely and accurate representation of commodities as an asset class.

Dow Jones-AIG Commodity Index: It started in 1999. The DJAIG is a quantity-based commodity index that predefines a set of criteria to prevent any sector from being dominant in the index. This index allows the investors to track commodity futures by offering a simple way of measurement.

Roger International Commodity Index: It is a kind of commodity index which gives the value of a collection of commodities from 10 exchanges that are used in the economic world. The number of commodities used for the collection is constant and that is 36.

Standard & Poor’s Goldman Sachs Commodity Index: The GSCI index was created in 1992 and is also exchange traded. The SPGSCI is a quantity-based world production-weighted index that currently holds six energy products, five industrial metals, eight agricultural products, three livestock products and two precious metals.

The index has the flexibility to hold any number of contracts as long as the particular contract meets the liquidity criteria. Contracts are weighted by the average worldwide production in the last five years of available data.

MCX COMDEX: It is India’s first composite commodity future Index. This index encompasses future contracts drawn on commodities included in broad categories – metals, energy and Agri, traded on MCX, thus representing diverse sector.