Tag Archives: Commodity Index

Commodity Index: Why It Matters, Examples, Influencing Factors

What it is: A commodity index tracks the price performance of a selected basket of commodities. Index issuers assign weights to selected commodities, the percentage of which varies according to each methodology. Some use varied weights and some use average weights. Why are commodity indices important Commodity index is an alternative and a way to diversify a portfolio. That makes it… Read More »