Dow Jones AIG Commodity Index - DJ-AIGCI

The Dow Jones AIG Commodity Index, DJ-AIGCI, is a has-been weighted commodity futures index that was rebranded as the “Bloomberg Commodity Index.” It tracks commodity futures contracts for things like energy, agriculture, metals—things that aren’t going anywhere soon.

It’s weighted so that no one commodity will take up more than 15% of the whole index...just in case. It’s weighted in other ways too, like making sure one market doesn’t represent more than a third of it, and keeping a balance of liquid contracts vs. not-as-liquid-y contracts.

Why do we use this index? It’s another one of those “big picture” indexes, which can help investors make sure they’re keeping a balanced portfolio, particularly if they’re in the commodities market.