S&P Dow Jones launches new S&P GSCI Ex-Single Capped Component indexes

By Tali Rackner

Norfolk, Va., March 12 - S&P Dow Jones Indices announced the launch of the S&P GSCI Ex-Single Capped Component, a family of indexes based on the S&P GSCI Single Commodities that apply capped component rules, according to a press release.

For every index in the family, each namesake commodity is allocated a weight of 0% with the remaining 100% equally distributed among the eligible S&P GSCI commodities. 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.

"These indices enable investors to create alpha strategies within the framework of the diversification rules set forth by ESMA," Jodie Gunzberg, global head of commodities, said in the release.

"Supply shocks are more prevalent now than they have been in many years, and correlation has returned to low pre-crisis levels. As a result, there are more opportunities for investors to express views on this market environment."

S&P Dow Jones is part of New York-based McGraw-Hill Cos., a resource for index-based concepts, data and research.

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