Two Flagship Benchmarks Delivering Pure Beta

Historical Benefits of Commodities

  • Diversification

    Diversification
    Historically, commodities have had low correlations to stocks and bonds because the sources of return are inherently different. Because commodities are necessary, often-used staple goods, they can also provide diversification during economic crises.

  • Inflation Protection

    Inflation Protection
    Commodity indices tend to have a positive correlation to inflation because they reflect our changing expectations of future prices. Historically, one dollar of investment in a broad-based commodity index has provided more than one dollar of inflation protection, because food and energy carry more weight in these indices than in the CPI.

  • Liquidity

    Liquidity
    To promote investability, the weight of each commodity in the S&P GSCI® is based on its volume of futures contracts traded. As a result, the index tends to have higher weights in crude oil, natural gas, and heating oil. The DJCI employs a simple, straightforward, equal-weighted approach, so that one-third of the index is devoted to agriculture and livestock, one-third to energy, and one-third to metals.

Research & Insights

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    Topics in Commodities

    See the current commodities market through the lens of global events.

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    Who Profits in the Commodity Futures Markets Now?

    Find out which external factors have influenced commodities and how the market has responded.

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    Commodity Trends Boost Leveraged and Inverse Indices

    Explore the mechanics of leveraged and inverse indices.

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    The Market’s Impact on Commodities

    Learn why interest in commodities is increasing.

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    Riding the Colossal Commodities Wave in Asia

    Is recent commodities growth sustainable, or is it a fad?

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