Commodities take foothold in FTSE-100

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Over a third (36pc) of the FTSE-100's market capitalisation is now comprised of commodity related companies, up from 26pc last year, according to DigitalLook.com.

This, says DigitalLook.com, has important implications for those passive investors who have large weightings in FTSE-100 Tracker funds. Andy Yates, director of DigitalLook.com, said: "Tracker funds are perceived to be lower risk investments as they offer instant diversification across industry sectors. However, private investors need to examine just how comfortable they are with tying the fortunes of their portfolio to the movement in commodity prices." He pointed out that the commodity related weighting in the FTSE-100 has been raised by the inclusion in the index since June 21 of Ferr...

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