Introduction
S&P GSCI, a composite index of commodities, is capable of measuring the commodity market performance. It is the commodity equivalent of stock indexes.
Initially, S&P GSCI was called the Goldman Sachs Commodity Index (GSCI) before Standard and Poor purchased in 2007. It is made of 24 exchange-traded futures contracts that cover physical commodities from five different sectors. One can invest in it and track the performance via ETF products.
Understanding S&P GSCI
S&P GSCI covers physical commodities from sectors such as energy, precious metals, industrial metals, agriculture, and livestock. The components of the index qualify for inclusion in the index-based liquidity measures. They are weighed in comparison to their global production levels. GSCI is valued as an economic indicator and a commodities market benchmark.
