S&P GSCI Enjoys Strong First Half Performance
The S&P GSCI rose 31.4% in the first half of 2021, outperforming the S&P 500®, which rose 15.2%. The S&P GSCI has more than doubled since hitting an all-time low during the initial stages of the COVID-19 pandemic in April 2020. Several commodities have reached new all-time highs this year, as the global economy has…
Getting Dynamic with Commodities – Part 2
In part 1 of this two-part blog series, we discussed the characteristics of the S&P GSCI Dynamic Roll and the two main concerns this index attempts to alleviate, which are negative roll yield and volatility in commodities futures. Diving a bit deeper, we explore the recent performance of a diversified hypothetical portfolio when the S&P…
Getting Dynamic with Commodities – Part 1
Launched just over 10 years ago, the S&P GSCI Dynamic Roll was the first dynamically rolling commodity futures index to be offered by a major index provider. What does it mean to dynamically roll? Exhibit 1 describes the process in detail. Employing a flexible monthly futures contract rolling strategy, the S&P GSCI Dynamic Roll is…
High Levels of Dispersion across the Commodities Complex in May
At the headline level, it was a rather subdued month for commodities. The S&P GSCI gained 2.5%, taking YTD performance to 26.0%. While the S&P GSCI’s upward momentum attenuated, high dispersion in the performance of single commodities continued, albeit with reversals among the leaders and laggards. Most of the grains sagged to the bottom of…
Commodities Burst Higher in April
Several commodities made new all-time highs, as the global economy reflated, consumer confidence hit pre-pandemic highs, and housing prices in the U.S. jumped the most in 15 years. The S&P GSCI continued to perform well, rising 8.2% for the month to start the second quarter, following a strong 13.5% in the first quarter. Most commodities…
Expanding the Non-USD Denominated S&P GSCI Single Commodity Index Series
Concerns of a rising U.S. dollar may pose a hindrance to initiating commodity exposure from outside the U.S. Most commodities around the world are priced in U.S. dollars, so when the value of the U.S. dollar rises, the value of commodities typically falls. The launch of new non-U.S.-dollar-denominated S&P GSCI Single Commodities Indices could help…
One Year after the Rapid Reset
What a difference a year makes. April 21, 2021, marks the one-year anniversary of the S&P GSCI’s low. Since then, we have entered a different economic, social, and geopolitical environment, and the S&P GSCI was up 60% as of April 19, 2021. On March 26, 2020, three days after the low in the S&P 500®,…
Renewable Diesel Feedstock – Green Fuel and Affordable Food Part 2
As market participants increasingly incorporate ESG metrics into all aspects of investing, it is inevitable that commodities investing would collide with ESG. The search for low-carbon fuel feedstocks from renewable sources to meet the demand for green energy is one area where the commodity-ESG conundrum is already apparent. In part 1 of our blog, we…
- Categories Commodities, ESG
- Tags agriculture, agriculture sector, clean energy, clean energy fuel, corn, ESG, FAO Food Price Index, FAO Vegetable Oil Price Index, feedstock, hydrotreated vegetable oil, plant oil, renewable diesel, renewable energy, Renewable Fuel Standard, S&P GSCI, soybean oil, sugar
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- Commodities, ESG
Capturing the Past, Present, and Future of Commodities with the S&P GSCI
After three decades of helping investors make more informed decisions and providing index-based access to diversification, liquidity, and inflation protection – what’s next for this index icon?
Renewable Diesel Feedstock – An Alternative Clean Energy Investment Part 1
Renewable diesel1 is one of the newer clean energy fuels on the market. It has become popular because it reduces emissions and has up to 85% less sulfur than ultra-low sulfur diesel. As clean air regulations and sustainability goals become more common, renewable diesel could continue growing in popularity. Renewable diesel can power conventional auto…
- Categories Commodities, ESG
- Tags clean energy, clean energy fuel, feedstock, hydrotreated vegetable oil, Low Carbon Fuel Standard, plant oil, renewable diesel, renewable energy, S&P Global Clean Energy Index, S&P GSCI, S&P GSCI Soybean Oil, S&P WCI Canola, S&P WCI Crude Palm Oil, S&P WCI Rapeseed, soybeans
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- Commodities, ESG
