Overview
The Dow Jones-UBS Commodity Index℠ (DJ-UBSCI℠) is a broadly diversified index that allows investors to track commodity futures through a single, simple measure. As the index has grown in popularity since its introduction in 1998, additional versions and a full complement of subindexes have been introduced. Together, the family offers investors a comprehensive set of tools for measuring the commodity markets.
The indexes are composed of futures contracts on physical commodities. Unlike equities, which typically entitle the holder to a continuing stake in a corporation, commodity futures contracts normally specify a certain date for the delivery of the underlying physical commodity. In order to avoid the delivery process and maintain a long futures position, nearby contracts must be sold and contracts that have not yet reached the delivery period must be purchased. This process is known as "rolling" a futures position.
Dow Jones-UBS Commodity Index℠
The DJ-UBSCI℠ is composed of commodities traded on U.S. exchanges, with the exception of aluminum, nickel and zinc, which trade on the London Metal Exchange (LME). Trading hours for the U.S. commodity exchanges are between 8:00 AM and 3:00 PM ET. A daily settlement price for the index is published at approximately 5:00 PM ET.
The DJ-UBSCI℠ is calculated on an excess return basis. Also available is the Dow Jones-UBS Commodity Index Total Return℠ (DJ-UBSCITR℠), a total return index based on the DJ-UBSCI℠. The DJ-UBSCI℠ reflects the return of underlying commodity futures price movements only, while the DJ-UBSCITR℠ reflects the return on fully collateralized positions in the underlying commodity futures.
Dow Jones-UBS Commodity Indexes℠: Foreign Currency Versions
The DJ-UBSCI℠ and the DJ-UBSCITR℠ are also available denominated in Australian dollars, euros, pounds sterling, Swiss francs and yen.
Included in the DJ-UBSCI℠ family are subindexes representing the major commodity sectors within the broad index: Agriculture, Energy (including petroleum and natural gas), Grains, Industrial Metals, Livestock, Petroleum (including crude oil, heating oil and unleaded gasoline), Precious Metals and Softs. Also available are the following single commodity subindexes:
- Dow Jones-UBS Aluminum Subindex℠
- Dow Jones-UBS Brent Crude Subindex℠
- Dow Jones-UBS Cocoa Subindex℠*
- Dow Jones-UBS Coffee Subindex℠
- Dow Jones-UBS Copper Subindex℠
- Dow Jones-UBS Corn Subindex℠
- Dow Jones-UBS Cotton Subindex℠
- Dow Jones-UBS Feeder Cattle Subindex℠*
- Dow Jones-UBS Gas Oil Subindex℠*
- Dow Jones-UBS Gold Subindex℠
- Dow Jones-UBS Heating Oil Subindex℠
- Dow Jones-UBS Lead Subindex℠*
- Dow Jones-UBS Lean Hogs Subindex℠
- Dow Jones-UBS Live Cattle Subindex℠
- Dow Jones-UBS Natural Gas Subindex℠
- Dow Jones-UBS Nickel Subindex℠
- Dow Jones-UBS Orange Juice Subindex℠*
- Dow Jones-UBS Platinum Subindex℠*
- Dow Jones-UBS Silver Subindex℠
- Dow Jones-UBS Soybean Meal Subindex℠*
- Dow Jones-UBS Soybean Oil Subindex℠
- Dow Jones-UBS Soybeans Subindex℠
- Dow Jones-UBS Sugar Subindex℠
- Dow Jones-UBS Tin Subindex℠*
- Dow Jones-UBS Unleaded Gasoline Subindex℠
- Dow Jones-UBS Wheat Subindex℠
- Dow Jones-UBS WTI Crude Oil Subindex℠
- Dow Jones-UBS Zinc Subindex℠
*Not a direct subset of the Dow Jones-UBS Commodity Index℠
Dow Jones-UBS Commodity Indexes℠: Foreign Currency Versions
The DJ-UBSCI℠ and the DJ-UBSCITR℠ are also available denominated in Australian dollars, euros, pounds sterling, Swiss francs and yen.
The DJ-UBSCI℠ family includes indexes that allow investors to track a diversified basket of commodity futures while excluding single classes of commodities. Currently available are the following indexes:
- Dow Jones-UBS Commodity ex-Agriculture Index℠
- Dow Jones-UBS Commodity ex-Agriculture and Livestock Index℠
- Dow Jones-UBS Commodity ex-Energy Index℠
- Dow Jones-UBS Commodity ex-Grains Index℠
- Dow Jones-UBS Commodity ex-Industrial Metals Index℠
- Dow Jones-UBS Commodity ex-Livestock Index℠
- Dow Jones-UBS Commodity ex-Petroleum Index℠
- Dow Jones-UBS Commodity ex-Precious Metals Index℠
- Dow Jones-UBS Commodity ex-Softs Index℠
Dow Jones-UBS Commodity Spot Indexes℠
The Dow Jones-UBS Commodity Spot Indexes℠ measure price movements of the commodities included in the DJ-UBSCI℠ and select subindexes. The DJ-UBS Commodity Spot Index℠ provides a general estimate of trends in commodity prices. It does not account for the effects of rolling futures contracts or the costs associated with actually holding physical commodities, and is thus not replicable with positions in the underlying commodity futures contracts.
Dow Jones-UBS Commodity Indexes℠: Currency Hedged Versions
The currency hedged versions of the Dow Jones-UBS Commodity Index℠ are designed as benchmarks for non-U.S. investors. The indexes are calculated to reflect the hedging of foreign exchange risk. Currently available are daily and monthly hedged versions for the following currencies: Australian dollar, Canadian dollar, euro, pound sterling, Swiss franc, Swedish Krona, yen and zloty. The indexes are calculated in excess return and total return.
Dow Jones-UBS Roll Select Commodity Index℠
A version of the Dow Jones-UBS Commodity Index℠ that aims to mitigate the effects of contango on index performance. For each commodity, the index rolls into the futures contract showing the most backwardation or least contango, selecting from those contracts with nine months or fewer until expiration. The index is calculated in price and total return.
Dow Jones-UBS Commodity Indexes℠: Forward Versions
The DJ-UBSCI℠ family includes 1-, 2-, 4-, 3- and 6-month forward versions of the DJ-UBSCI℠ and select subindexes. Composed of longer-dated commodity futures contracts, the forward versions allow investors to measure exposure to different parts of the commodity price curve. Also offered is a forward blend index that represents an equally weighted basket of the 2-, 4- and 6-month forward versions.
