S&P Dow Jones introduces equal-weighted Dow Jones Commodity index

By Tali Rackner

Norfolk, Va., July 1 – S&P Dow Jones Indices introduced the Dow Jones Commodity index that is designed to be a broad-market commodity index with diversification and liquidity as its intrinsic characteristics, according to a press release. It will serve as a complement to the S&P GSCI.

The index includes 23 of the commodities included in the broad, world production weighted S&P GSCI, but it weights each of the three major sectors – energy, metals and agriculture and livestock – equally.

The index's construction is meant to be simple in order to facilitate its use as an equally weighted beta, or to act as a building block for modifications. It is rebalanced quarterly.

"With today's announcement of the Dow Jones Commodity index, market participants will have the advantage of using an index based upon a simple design that can serve as both a balanced, diversified and liquid benchmark and as an underlying for potential investment products," head of commodities Jodie Gunzberg said in the release.

S&P Dow Jones is part of New York-based McGraw-Hill Cos., a resource for index-based concepts, data and research.

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