Posted on 23 September 2011.
The Rogers International Commodity Index is one of many commodities indexes. Each of these indexes tracks several commodities. Such a collection of commodities in one fund or index is referred to as a basket. Investors can trade these baskets of commodities as if they were stock index futures.
The kind of commodities available in these indexes is not limited. They can range from crops to precious metals or energy sources. The Rogers International Commodity Index is characterized by a broad range in its commodities and it includes all of the categories mentioned: agricultural, metals and energy.
The Rogers International Commodity Index was started in the 1990’s. It holds futures contracts on 38 exchange-traded commodities and it is listed on thirteen exchanges in six different countries. This index intends to measure the price behavior of commodities around the whole world. However, it considers itself as a US dollar-based index.
The goal of the Rogers International Commodity Index is to provide stability in its investments. This is why it invests in raw materials from around the world. This also gives it an edge in a growing world economy that is increasing use of a broad range of these raw materials.
The members of the Rogers International Commodity Index committee do not make sudden changes in the composition of the index. They refrain from causing any changes that upset the qualities of transparency and consistency that attract its investors. Committee members will consider the possibility of changing the index composition only when significant changes in the world market have occurred and are obvious to other members. Even in these situations, no changes are made before they make an exhaustive review of the entire Rogers International Commodity Index.
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