Dow Jones AIG Commodity Index - DJ-AIGCI


DEFINITION of 'Dow Jones AIG Commodity Index - DJ-AIGCI'

A rolling commodities index composed of futures contracts on 19 physical commodities traded on U.S. exchanges. The index serves as a liquid and diversified benchmark for the commodities' asset class.

BREAKING DOWN 'Dow Jones AIG Commodity Index - DJ-AIGCI'

The primary goal of the DJ-AIGCI is to provide a diversified commodities index with weightings based on the economic significance of individual components, while maintaining low volatility and sufficient liquidity.

Employing both liquidity and dollar-adjusted production data to determine its individual component weightings, the DJ-AIGCI index differs from other commodities indexes, such as the Goldman Sachs Commodity Index, as it allows for varying component weightings but maintains restrictions such as maximum and minimum component weightings to ensure adequate diversification.

  1. Liquidity

    The degree to which an asset or security can be quickly bought ...
  2. Commodity

    1. A basic good used in commerce that is interchangeable with ...
  3. Commodity Research Bureau Index ...

    An index that measures the overall direction of commodity sectors. ...
  4. Index

    A statistical measure of change in an economy or a securities ...
  5. Volume Of Trade

    The total quantity of futures contracts bought and sold during ...
  6. Futures Contract

    A contractual agreement, generally made on the trading floor ...
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