This will make it more speculative than it is and impact prices for several metals such as Nickel, Iron, Cobalt, Copper and Aluminum.
This new futures-based index measures the performance of tradeable metals used in the production of electric vehicles and weights them according to their relative usage in a representative electric vehicle. S&P DJI has collaborated with S&P Global Commodity Insights to leverage and incorporate a representative set of metal usage data in the electric vehicles sector.
“We are excited to bring together the data and insights of two S&P Global divisions to launch an innovative index that tracks the performance trends of key metals such as cobalt, copper, aluminum, nickel and iron ore that are essential in the production of electric vehicles,” said Fiona Boal, Global Head of Commodities at S&P Dow Jones Indices. “As global financial markets, investors and consumers alike increasingly embrace the use of greener technologies, there is high demand for certain types of commodities, particularly in the metals sector, that supports the market’s path towards energy transition. Through our indices, S&P DJI can offer valuable insights to clients and investors as they develop thematic and targeted investment strategies to reflect this transition.”
Indeed, the S&P GSCI Electric Vehicle Metals leverages S&P Global Commodity Insights’ data to help determine its constituents and production weights and ensure that the index broadly reflects the relative metal usage in a representative electric vehicle. An important and unique index feature is its flexibility in reweighting, adding or removing constituents at regular intervals to ensure that it can adapt to rapid changes in electric vehicles technology, as well as the launch and adoption of new metals futures contracts.
The S&P GSCI Electric Vehicle Metals is part of the S&P GSCI family of indices. The S&P GSCI is the first major investable commodity index and measures the most liquid commodity futures, which provides diversification with low correlations to other asset classes.
