Spot Indexes
May 14, 2019

Spot Indexes: Not What You Think They Are

Spot returns in the commodity asset class can be confusing for many investors. Commodity spot indexes were created to address the overarching need for a true indicator of a given commodity’s price for immediate delivery while also avoiding the complexity of various venues and delivery types in the true spot market. 


However, there's confusion among investors who take the name “spot indexes” at face value and believe they track the spot prices of commodities. While this confusion is understandable, these benchmark indexes should be viewed as proxies of underlying spot-price movements, not as expectations for the performance of a commodity investment.

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Tim Atwill
Tim Atwill, PhD, CFA

Head of Investment Strategy (emeritus)

 

 

Tim Atwill
Tim Atwill, PhD, CFA
Greg Liebl

Greg Liebl, CFA

Senior Investment Strategist

 

 

Greg Liebl

Greg Liebl, CFA

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