We think the bull market in commodities still has a long way to go, especially when you look at growth rates in China, India, the MENA countries and throughout most of the developing world, where demand for just about every commodity is rising at unprecedented rates.
New York, NY (PRWEB) June 19, 2008
The RogersTM Van Eck Hard Assets Producers IndexSM (Ticker: RVEI) commenced real-time price dissemination today.
The RVEI will serve as a comprehensive, data-rich equity benchmark for the global commodities sector, which is also referred to as the hard assets sector. Says commodity investor Jim Rogers, Chairman of the RogersTM Van EckSM (RVE) Index Committee, “With this index, we provide a reliable and comprehensive benchmark for measuring the performance of the global hard assets industry, which is central to the world economy, accounting for approximately 14 percent of world economic output.”
The RVEI comprises 310 stocks from around the world that together account for nearly 15percent of the world’s total stock market capitalization. The RVEI is a capitalization-weighted index, adjusted for free float. It is divided into six sectors: a) Energy, b) Agriculture, c) Base and Industrial Metals, d) Precious Metals and e) Alternatives (Renewable Energy and Water). The sectors are weighted based on estimates of global consumption of the respective commodities. Over 90 percent of the global stock market capitalization of each sector is captured.
Data will be available through most data vendors. The RVE Family of Indexes is published by S-Network Global Indexes, LLC and S&P Custom Indexes serves as its calculation agent.
In recent years, the hard assets sector has experienced significant growth due to steadily rising commodity prices. Based on back tests, the RVEI has risen over 300 percent over the past five years. Says Rogers, “We think the bull market in commodities still has a long way to go, especially when you look at growth rates in China, India, the MENA countries and throughout most of the developing world, where demand for just about every commodity is rising at unprecedented rates.”
Companies, except for those in the water sector, contained in the RVEI must derive at least 50 percent of their revenues from the applicable commodity sector. Altogether, these companies own or control most of the world’s production of energy and metals, and play central roles in world agricultural production. The RVEI includes stocks from 39 sovereign jurisdictions, including the United States, China, Russia, Brazil and a number of European countries. Says Joseph LaCorte, Managing Member of New York-based index publisher S-Network Global Indexes LLC, “The RVEI is global, comprehensive and pure-play. It is also forward-looking, because it covers sectors, such as alternative energy and water, which have not been included in the hard assets category until now.”
In addition to the RVEI, S-Network Global Indexes will also publish five related indexes: The RVE Hard Assets Producers Composite of 845 stocks (Ticker: RVEC); the RVE Hard Assets Producers Liquid Index of 50 stocks (Ticker: RVEXL); the RVE Energy Producers Index (Ticker: RVEE); the RVE Agricultural Producers Index (Ticker: RVEA) and the RVE Metals Producers Index (Ticker: RVEM).
Detailed information, including constituent data, rules and price information, on the RogersTM Van Eck Hard Assets Producers IndexSM is available at http://www.rveindexes.com.
Bios and Backgrounds:
Jim Rogers is the well-known commodity investor, financial author and commentator. He was a founder of the Quantum Fund and served as a professor of finance Columbia University School of Business.
S-Network Global Indexes, LLC:
S-Network Global Indexes LLC is a publisher and developer of proprietary and custom indexes. Since its founding in 1997, S-Network has worked with many of the leading financial services firms in the world on index development, indexation and index-based products, including ETFs and ETNs. S-Network currently publishes over twenty benchmark indexes that are licensed to asset managers and investment banks throughout the world.
Van Eck Global (“Van Eck”):
Van Eck, an investment firm with over 50 years experience investing in hard assets, has endorsed the index.
“Jim Rogers”, “James Beeland Rogers, Jr.”, “Rogers”, are trademarks, service marks and/or registered trademarks of Beeland Interests, Inc., which is owned and controlled by James Beeland Rogers, Jr., and are used subject to license. The names of Jim Rogers/James Beeland Rogers, Jr. are trademarks and service marks of James Beeland Rogers, Jr.”
Neither Beeland Interests, James Beeland Rogers, Jr. or Van Eck Global (“Van Eck”) makes any representation or warranty, express or implied, nor accepts any responsibility, regarding the accuracy or completeness of this press release, or the advisability of investing in securities or commodities generally, or in RVEI or in futures particularly.
Beeland interests and its affiliates and Van Eck and its affiliates shall not have any liability for any errors, omissions, or interruptions, and makes no warranty, express or implied, as to results to be obtained by any person or entity from the use of RVEI. Without limiting any of the foregoing, in no event shall Beeland interests or Van Eck or any of their affiliates have any liability for any lost profits or indirect, punitive, special or consequential damages or losses, even if notified of the possibility thereof.
Joseph LaCorte, CFA
S-Network Global Indexes, LLC
Info @ snetworkllc.com