Standard & Poor’s Commodity Trends Indicator
Investors are recognizing the potential value of allocating to traditional, physical “commodities” for diversification. However, there are still only few options for investors seeking broad exposure to a commodities portfolio except for commodity investment options providing investors “long only” exposure, which often entails substantial volatility and provides favorable return opportunities only in rising commodity markets.
The S&P CTI is based on futures, not cash market prices; these prices may differ materially in general as well as for specific commodities. Importantly, the S&P CTI takes long or short exposures based on a rules-based, trend-following methodology.
Sector Coverage
The S&P CTI is an investable methodology that seeks to benefit from trends (in either direction) in the commodity futures markets. The S&P CTI is a composite of 16 tangible commodity futures (no financials) grouped into 6 sectors from around the world.
