Tracking exchange-traded commodities with the cost index tool

Understanding how commodity prices affect your business, investments or procurement costs is becoming increasingly complex. Some organisations struggle to track multiple commodities at once. Others rely heavily on spot prices, which often reflect short-term market movements rather than underlying commodity trends.

To address this challenge, we have launched a new Commodity Dashboard that allows you to build a forecast-based cost index, linking your commodity exposure with our price forecasts.

In this guide, we demonstrate how this works in practice by replicating and monitoring the performance of WisdomTree Energy Transition Metals ETC using our index.

What you will learn:

• The cost index tool builds on this capability by enabling users to construct a bespoke composite index using up to 10 commodities, weighted to reflect a specific exposure. Once created, the index can be analysed using the same tools available for individual commodities, including levels, growth rates, and comparisons of nominal and real prices. The resulting series can be downloaded directly, supporting integration into portfolio analysis, scenario work, and client reporting.
• For ETC tracking, this transforms the dashboard from a static data source into a forward-looking monitoring framework that links expected commodity fundamentals directly to investment performance.
• Oxford Economics’ forecasts imply modest aggregate ETC performance over the next two years once the near-term correction associated with the recent speculative rally has played out.