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S&P Dow Jones Indices announced today the launch of a family of indices based on the S&P GSCI® Single Commodities that applies the Capped Component rules according to the ESMA guidelines on UCITS issues.
Currently, the S&P GSCI includes 24 commodities that form 18 components, where three of the components, Petroleum, Wheat, and Cattle, include more than one commodity. For every S&P GSCI Single Capped Component, the namesake commodity is allocated 32%, with the remaining 68% equally distributed among the remaining commodities in the other components.
“The construction of each S&P GSCI Single Capped Component emphasizes the single commodity but within the spirit of diversification,” says Jodie Gunzberg, Vice President at S&P Dow Jones Indices. “This provides market participants with a toolbox to build active funds that express views on individual commodities yet are well diversified to meet the guidelines.”
The launch of the S&P GSCI Single Capped Component Family expands the offerings for clients interested in diversification as a core requirement to their investing or benchmarking programs. The S&P GSCI is the first major investible commodity index. It is one of the most widely recognized benchmarks that is broad-based and production weighted to represent the global commodity market beta.
For more information, please visit www.spdji.com/index-family/commodities/sp-gsci.
