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.
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Finance: What is the Dow Jones Industria...2710 Views
finance a la shmoop- what is the Dow Jones Industrial Average? well it's just
an index. it's a basket of 30 industrial stocks hence the catchy industrial word [list of the 30 stocks involved in the Dow]
in there and it was started in 1896 by Charles Dow and Edward Jones sort of the
Coke and Pepsi of stock averages in the day .worth noting is the fact that while
the Dow average is quoted often in the press it's not something that real Wall
Street traders really rely on that much as a market place holder anymore. why?
well because the Dow comprises only 30 stocks. it isn't really a broad market [Dow Jones in the trash]
representation, and you know the way the S&P 500 is the 500 is bigger than 30. Big
Brother has way more stocks and is thus way more liquid than the relatively
blippi set of 30 stocks that the Dow offers. over time the Dow has changed as
companies were bought and/or died and or just withered and became no longer
relevant. i.e. newspaper industry. which means that this thing has gone through
more faces than Kanye West .yeah. [Kanye West faces pictured]
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