S&P launches oil-hedged index to address inflation fears
The S&P 500 Oil Hedged Index replicates the returns of an investment strategy that is long the S&P 500 and hedged against changes in the US dollar as measured by oil prices
Standard & Poor's (S&P) has launched the S&P 500 Oil Hedged index, aimed at investors seeking alternative methods to hedge against inflationary risks during periods of global economic uncertainty.
The index allows investors to benefit from an increase in oil prices by combining a long S&P 500 position overlaid with long positions in Nymex Oil futures and ICE Brent Crude Oil futures.
"The US dollar is negatively correlated to oil prices," says Alka Banerjee, vice-president at S&P Indices in New
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