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.

RELATED TERMS
  1. Commodity ETF

    Exchange-traded funds that invest in physical commodities such ...
  2. Cash Commodity

    In futures trading, the cash commodity is delivered for payments. ...
  3. Excluded Commodity

    A commodity that is not susceptible to measures of influence ...
  4. Commodities Exchange

    An entity, usually an incorporated non-profit association, that ...
  5. Spot Commodity

    A commodity traded on the spot market. That is, with the expectation ...
  6. Commodity Pool

    A private investment structure that combines investor contributions ...
Related Articles
  1. Markets

    Understanding the Commodity Market

    There are currently 50 physical and virtual commodity markets worldwide where almost 100 primary commodities trade through the exchange of ownership rights.
  2. Managing Wealth

    How To Invest In Commodities

    Find out which futures, options or funds will be your perfect commodity portfolio fit.
  3. Investing

    Commodities Relative Value

    In this special report, we take a close look at the hedge fund segment, considering key characteristics and performance trends, and offering our outlook for the rest of the year and beyond.
  4. ETFs & Mutual Funds

    The Top 3 ETFs For Investing in Commodities (GLD, DBA)

    Explore diversifying an investment portfolio through investing in commodities ETFs, and get information on some of the best commodity funds.
  5. Markets

    All About Liquid Commodities

    You might hear 'liquid commodities' and think of an auction, but they're actually a high-volume, fast paced financial product suitable for day traders.
  6. Markets

    3 Reasons to Invest in Discounted Commodities

    Though they're selling at depressed prices, there are several reasons that it could make sense to invest in commodities now.
  7. ETFs & Mutual Funds

    Commodities: Has Their Time Come Again?

    Commodities have spent much of the previous four years in the basement. Does that make them a bargain?
  8. ETFs & Mutual Funds

    Investing In Commodities Without the Hassle: Try Commodity ETFs

    Exchange-traded funds (ETFs) that invest in commodities offer a convenient, low cost way to access the commodities markets.
  9. ETFs & Mutual Funds

    3 Commodities-Oriented Mutual Funds to Avoid in 2016 (RYMBX, GSCCX)

    Discover how commodities have performed since selling off at the start of 2016, and find out about the top three commodity mutual funds to avoid in 2016.
  10. ETFs & Mutual Funds

    The 3 Best ETFs to Short Commodities (DNO, SZO)

    Learn about the strategies of three inverse commodity ETFs, and discover why they offer an alternative method to bet on a decline in commodity prices.
RELATED FAQS
  1. Who sets the price of commodities?

    Commodities are extremely important as they are essential factors in the production of other goods. A wide of array of commodities ... Read Answer >>
  2. Can mutual funds invest in commodities?

    Learn how investors can use commodity mutual funds to diversify their portfolios, and discover why mutual funds may be less ... Read Answer >>
  3. Do hedge funds invest in commodities?

    Learn about hedge funds that invest in commodities. Read about Commodity Trading Advisors who focus specifically on trading ... Read Answer >>
  4. What's the difference between a commodity and a product?

    Understand the difference between commodities and products, and learn how they are connected to each other and to market ... Read Answer >>
  5. In forex, what are the commodity pairs?

    In forex, the commodity pairs consist of the heavily-traded currency pairs and contain the Canadian, Australian and New Zealand ... Read Answer >>
  6. What are the advantages of commodities on a Roth IRA?

    Discover what kind of commodity-based investments are allowed inside of a Roth IRA and what advantages commodities can bring ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center