Commodity Index
A commodity index tracks the price movement of a basket of raw materials to measure overall market performance.
Quick Reference:
Groups similar commodites. Similar to stock index.
Expanded Definition:
Commodity indexes provide an overview of how groups of raw materials are performing over time. The Bloomberg Commodity Index, for instance, includes energy, metals and agricultural products. Investors use these indexes to diversify portfolios and gain exposure to the broader resource economy without directly owning physical commodities. For analysts, they offer a quick pulse on global economic trends and inflation pressures.