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.
Related or Semi-related Video
Finance: What is the S&P 500?45 Views
finance a la shmoop. what is the S&P 500? well the S&P 500 is just an index- that
is the standard and poors company assembled 500 stocks put them on a
spreadsheet- this was a spreadsheet in 1957 -and they tracked them. [spreadsheet pictured]
well the index had something like 37 shares of Procter & Gamble, the 23 shares
of Ford, 18 shares of IBM and so on. in the 1950s the S&P 500 totaled something
like 40 maybe 50 bucks on a good day. at the end of each day the elves who worked
inside of the S&P Factory, they would add up the shares basically ignore any
dividends and send to the press a total which was published to more or less
everyone who cared about investing. well not nearly even a century later the 40 [man reads newspaper]
to $50 reign to the SNP is today knock on the door of 2,500 .so without even
having dividends reinvested you'd have made 50 times your money with dividends
reinvested to buy more shares instead of keeping the cash to buy you know
groceries or electric massage slippers. you'd have made over 70 times your [grocery display case and slippers pictured]
original investment. welcome to America.
Up Next
What is the Dow Jones Industrial Average? The Dow Jones Industrial Average is usually just called the Dow. It’s an average of 30 of the most well...
The Wilshire 5000 is an index fund, which is kind of a bummer...it sounded like a cool financial robot.