Understanding Commodity Indices

Commodities indices are designed to track the performance of a specific set of commodities. These indices serve as benchmarks for measuring commodity investment performance and are an essential tool for investors looking to gain exposure to the commodities market. Some popular commodity indices include the S&P GSCI and the Bloomberg Commodity Index.

As an investment professional, it is crucial to understand the characteristics of these indices when evaluating an investment opportunity in commodities.

Which of the following statements correctly describes a key feature of commodity indices?