Dow Jones Indexes has launched the Dow Jones AIG Commodity Index to serve as the underlying for an exchange-traded fund (ETF). The Dow Jones AIG Commodity SwapEX launched on the XTF segment of Deutsche Boerse.
“Growing numbers of investors are taking a closer look at commodities indexes because returns have historically been negatively correlated with stock and bond returns and positively correlated with inflation measures,” says Michael A. Petronella, president, Dow Jones Indexes.
The index is designed to minimise concentration in any one commodity or sector. No one commodity can comprise less than 2 percent or more than 15% of the index, and no sector can represent more than 33 percent of the index as of the annual re-weightings of the index.