Introduction

The Market Access Rogers International Commodity Index UCITS ETF (RICI) is one of Europe’s longest-established and broadest commodity ETFs. It was launched in 2006 and is listed in Frankfurt, Zurich and on the London Stock Exchange.

The ETF tracks the Rogers International Commodity Index® (RICIGLTR), a US dollar-denominated total return index of commodities consumed in the global economy, ranging from agricultural to energy to metal products. The Index provides exposure to 38 different exchange-traded commodities, through futures contracts quoted in four currencies, listed on 10 exchanges in four countries.

RICIGLTR is calculated on a total return basis, meaning that it includes an assumed interest rate return based on the USD 3-month T-bill rate.

Reasons to consider the RICI and broad commodity exposure

  • RICI has the broadest range of constituents among major commodity benchmarks
  • A broad index provides a potential hedge against rising inflation risks
  • Themes: base metals are key to the clean energy transition
  • Themes: climate change impacts agriculture and energy demand
  • Oil and gold provide a potential hedge against geopolitical risks

Performance

Source: Market Access, Bloomberg. Past performance should not be used as an indicator of future performance.

Discrete annual performance to 31 December 2024 (in GBP)

Dec 19 - Dec 20Dec 20 - Dec 21Dec 21 - Dec 22Dec 22 - Dec 23Dec 23 - Dec 24
Jim Rogers International Commodity Index (GBP)-10.45%42.53%34.08%-9.57%8.44%
Spot Gold (GBP)21.38%-2.67%11.64%7.35%29.41%
FTSE 100 Index-14.34%14.30%0.91%3.78%5.69%
FTSE NAREIT All Equity REITS TR Index (GBP)-7.95%42.73%-15.97%5.69%6.73%
5 Yr Gilt Index0.09%0.39%2.27%4.09%4.11%

Source: Market Access, Bloomberg. Past performance should not be used as an indicator of future performance.

Five year returns to 28 September 2024 (in GBP)

5 YearRICIGLTR (GBP) GBP Gold Spot (XAU) FTSE 100 Index
Performance67.81%83.23%8.36%
Annualised performance10.91%12.87%1.62%
Annualised Volatility19.90%14.57%17.28%
Max Drawdown36.73%22.43%34.93%
Sharpe Ratio0.430.72-0.04

Source: Market Access, Bloomberg. Past performance should not be used as an indicator of future performance.

Commodities as an inflation hedge

Commodities, as key inputs in manufacturing and consumer staples, can be leading indicators of emerging inflation and exposure to them can serve to potentially hedge inflation risks.

Source: Market Access, Bloomberg. Past performance should not be used as an indicator of future performance.

COMMODITY INDEX CONSTITUENTS RICI vs BLOOMBERG, UBS CMCI, S&P GSCI

RICI BCOM UBS CMCI S&P GSCI

Source: Target 2024 weights. Market Access, index issuer websites: RICI, Bloomberg Commodity Index, UBS CMCI, S&P GSCI. RICI - Rogers International Commodity Index (RICIGLTR), BCOM – Bloomberg Commodity index (BCOMTR), UBS CMCI Constant Maturity Commodity Index (CMCITR), S&P GSCI - S&P GSCI Index (SPGCGPTR).

RICI index background

James B. Rogers, Jr. designed the index in the late 1990s. His focus was to create an index that reflected global consumption of commodities.

This global focus differentiates the RICI from other commodity indices, meaning that it includes commodities like rice, rubber, white sugar and lumber.

There are 11 commodities in the RICI that are not included in the other three comparison benchmarks. They represent 9.05% of the index target weights.

Base metals – essential to the transition to clean energy

In the drive towards a net zero carbon economy, there will be a potentially significant uplift in demand for commodities that are critical in enabling the transition to clean energy. This includes nickel, which is one of the key materials used in batteries for electric vehicles.

Stated Policies Scenario, an indication of where the global energy system is heading based on a sector-by-sector analysis of today’s policies and policy announcements.

Sustainable Development Scenario, indicating what would be required in a trajectory consistent with meeting the Paris Agreement goals.

Source: International Energy Agency, The Role of Critical Minerals in Clean Energy Transitions, NTree International

Commodity in focus – Agriculture

Source: Data as of 31 December 2024. Market Access, Bloomberg.

Commodity in focus – Agriculture

The start to 2025 has highlighted a number of factors that are likely to make the commodity complex an area of opportunity and focus over the coming 12 months. In this piece, we look exclusively at agriculture, which is a segment to which the Rogers Index has the most diversified exposure among mainstream commodity indices.

Agriculture is affected by factors such as extreme weather, geopolitical tensions, and policy changes, including those relating to trade, that can impact supply-demand balances, which in turn have implications for food security and prices. Early in 2025, there are indications the second Trump administration may shake up trade policy with the imposition or raising of tariffs on imports for a range of countries including China. In the case of China, any retaliatory measures could target agricultural exports such as soybeans, corn and cotton. In short, there is a chance that trade policies will lead to heightened volatility in agricultural commodity prices in 2025.

Aside from any tariff or embargo issues, trade is also dependent on the smooth operation of transportation networks, both internationally and domestically. More than 80 percent of world trade in grains and oilseeds is conducted through maritime routes. The past few years have highlighted potential fragilities in these networks. In 2024, low water levels in the Panama Canal and political instability in the Red Sea proved disruptive resulting in extended journey and increased costs. Only 20 to 25 vessels passed through the Red Sea in November 2024, compared to 70 to 75 in November 2023.(1) In the case of the United States, over 60% of grain exported from the country is shipped via the Mississippi River, when water levels are low, as they have been over the last three years, tow sizes and tonnes of goods per barge are reduced and shipping costs go up. (2) These issues are likely to be reoccurring against the backdrop of global warming.

Turning now to some of the individual agricultural commodities, cocoa has been grabbing the headlines. It was up 178% in USD terms over the course of 2024 based on the front month ICE Futures US contract. The reason for the significant price was reduced output from the main sources of global cocoa production, Ghana and the Ivory Coast, due to weather-related factors and disease. Initial indications are that these factors are going to continue to have an impact on production in West Africa in 2025. In early January, it was reported that Hershey has requested permission form the Commodity Futures Trading Commission to purchase more than 90,000 tonnes of cocoa on ICE Futures US, which is nine times more than is currently allowed by the exchange.(3) Further price rises for consumers of chocolate may be ahead.

Corn has seen futures positioning among money managers turn increasingly positive having been quite negative towards the middle of last year. The Commitments of Traders Report for 31 December 2024 showed that net long position in CBOT corn futures and options was standing at 228,806 contracts, the most positive positioning since February 2023.(4,5) The monthly USDA World Agricultural Supply and Demand Estimates (WASDE) report issued on 10 January 2025 gave the latest outlook for corn in the U.S.,

“This month’s 2024/25 U.S. corn outlook is for lower production, feed and residual use, exports, and ending stocks. Corn production is estimated at 14.9 billion bushels, down 276 million as a 3.8-bushel per acre cut in yield to 179.3 bushels is partially offset by a 0.2-million acre increase in harvested area. Total corn use is down 75 million bushels to 15.1 billion. Feed and residual use is reduced 50 million bushels to 5.8 billion, based on indicated disappearance during the September-November quarter as reflected by the Grain Stocks report. Exports are cut 25 million bushels to 2.5 billion reflecting lower supplies. With supply falling more than use, corn stocks are lowered 198 million bushels. The season-average corn price received by producers is raised 15 cents to $4.25 per bushel.”(6)

For corn, trade developments, in particular tariffs, and biofuel policies under the second Trump administration are among the factors to watch that could shape the profile of future U.S. production and prices.

Finally, investors cannot ignore the impact of weather on agriculture. La Niña conditions emerged in December 2024, reflected in below-average sea surface temperatures across the central and east-central equatorial Pacific Ocean. It is expected to persist through February-April 2025. (7) La Niña raises the chances of below-average precipitation in a number of regions including eastern East Africa, central-southern Asia, and southern South America. In early January 2025, there were emerging concerns in Argentina, the world’s third largest producer of soybeans after Brazil and the U.S., that lack of rainfall could negatively affect soybean yields. Historically these have been lower than average when conditions in January have been dry.(8) The monthly WASDE report will indicate how weather factors change soybean production estimates in Argentina, Brazil and Paraguay.

Fund documentation
Factsheet
KIID Market Access Rogers International Commodity Index UCITS ETF
Market Access Prospectus December 2021
UK Reporting Fund Status
PRIIPS KID

How to invest

Please contact your wealth management adviser or stockbroker. The ETF is also available through leading online investment platforms. The ETF is ISA and SIPP eligible.

Please contact us if there any issues with trading the ETF through a platform and we will gladly try to assist.

To find out more, please click here for fund information and literature.

Please read the prospectus, including the risk factors, and KIID before making an investment in the ETF.

Click here to find out more about Market Access.

key features

Legal form UCITS ETF
ISIN LU0249326488
TER / OCF 0.60%
Domicile Luxembourg
Management Company FundRock Management Company S.A.
Investment Manager Market Access Asset management Limited
Custodian and Administrator CACEIS Investor Services Bank S.A..
Replication Synthetic (swap with Barclays Bank Plc)
ISA / SIPP eligible Yes
UK Reporting Fund Status Yes