S&P launches single-commodity sub-indexes of S&P GSCI Enhanced Index

By Devika Patel

Knoxville, Tenn., Jan. 28 - Standard & Poor's said it has created seven single-commodity sub-indexes of the S&P GSCI Enhanced Index.

The sub-indexes include Brent crude oil, heating oil, natural gas, Chicago wheat, corn, lean hogs and live cattle. They are designed to alleviate the impact of negative roll returns - a situation that occurs when the price of the commodity's futures contract is higher than its spot price.

S&P also announced that it has licensed BNP Paribas to track the S&P GSCI Enhanced sub-indexes. BNP Paribas is the eurozone's leading bank in terms of deposits and a global-scale European leader in financial services, according to a news release.

"With this launch, S&P Indices now offers all of the commodities with enhanced roll schedules from the S&P GSCI Enhanced Index as standalone mono-indices," senior director of commodity indexing Michael McGlone said in a press release.

"The solid performance and robust methodology of the S&P GSCI Enhanced Index is certainly attracting attention."

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