Standard & Poor's (S&P) has launched two new indices aimed at providing investors with benchmark and investable exposure to the commodities and natural resources sectors.
The S&P Global Natural Resources Index, designed primarily for structured product providers and ETFs, provides coverage of the 60 largest companies across the primary commodity sectors of energy, agribusiness and metals and mining.
Each of the sectors has two clusters – energy (oil, coal and gas), agribusiness (agriculture & livestock) and metals and mining (precious and industrial).
The index sits within S&P's family of Global Thematic Indices and uses a modified cap weighting at the constituent level subject to stock level constraints (10% cap per stock). To ensure investability, a minimum market capitalization of US$1bn and a minimum six month average daily value traded of $10m is required.
S&P’s second new offering, the PMI Commodities and Resources Index, measures the performance of constituents falling into three different natural resources buckets: energy, materials and agriculture.
This index provides broader coverage of larger capitalised stocks, with approximately 160 stocks suitable for benchmarking for performance measurement, data for research, or passive management, including funds and ETFs.
Steven Goldin, vice president of S&P's index services, says: “With these new indices, we have broadened our coverage of these closely-linked sectors by providing both investable and benchmark equity exposure.”IFAonline
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