Rogers International Commodity Index® (RICI®)
Rogers International Commodity Index® (RICI®) represents the value of a basket of commodities used in the global economy, ranging from agricultural products (such as wheat, corn and cotton) and energy products (including crude oil, gasoline and natural gas) to metals and minerals (including gold, silver, aluminum and lead).
The index was developed by Jim Rogers to be an effective measure of the price action of raw materials on a worldwide basis. The broad based representation of commodities contracts is intended to provide two important characteristics: The large number of contracts and underlying raw materials represents "diversification" and the global coverage of those contracts reflects the current state of international trade and commerce. Accordingly, in many cases, allocation of a portion of an investment portfolio in a product based on the Rogers International Commodity Index® may reduce overall volatility while providing the opportunity to profit, assuming the continued growth of the global economy and that such growth translates into higher prices for those commodities.