Tracking the value of a wine cellar full of “investments” will get a little easier starting Monday when the London International Vintners Exchange launches the Liv-ex Claret Chip Index, the first fine-wine weekly price index.
Tracking the value of a wine cellar full of “investments” will get a little easier starting Monday when the London International Vintners Exchange launches the Liv-ex Claret Chip Index, the first fine-wine weekly price index.
The price-weighted index, which is made up of 31 Bordeaux wines, is designed as a more concentrated version of the Liv-ex 100 Fine Wine Index, which was launched by the exchange in 2004.
“The Liv-ex Claret Chip is a simpler, more focused index that is based on just the wines that investors are most likely to buy,” Jack Hibberd, research manager at the exchange, wrote in an e-mail.
He added that the index’s 31 components make up 57% of the Liv-ex 100 index by weighting.
“Therefore, the Claret Chip gives a very good guide to where the 100 will finish at the end of the month,” Mr. Hibberd said.
The Liv-ex 100 tracks the world’s most sought-after wines on a monthly basis, while the Claret Chip will offer weekly updates.
In 2008, the Liv-ex 100 index lost 14.6%, while the Claret Chip Index, had it existed, would have been down 14.3%.
This compares with a 38.5% drop by the Standard & Poor’s 500 stock index.
In 2007, Claret Chip would have gained 48.1%, the 100 index gained 40.4%, and the S&P fell by 11.1%.
While auction houses still represent the majority of fine-wine trading in the United States, exchanges such the London International Vintners Exchange and several websites are now responsible for 90% of global wine trading.
Members of the Liv-ex exchange can enter their wine portfolios to learn the current and historical values, much like a stock or mutual fund.
