CI Series Part 2: Commerce Sector Performance Indices
The term “commerce index” does not refer to a single unified benchmark on par with the S&P 500 or Baltic Dry Index. Instead, various financial and economic indices track different facets of commerce-related businesses – including retail, e-commerce, logistics, and supply chain sectors. Below is a detailed survey of majåor indices and indicators that collectively serve this purpose. We organize them by category (retail, e-commerce, logistics/supply chain), and also note relevant composite indicators and initiatives.
Retail Sector Indices
Retail-focused indices track the performance of companies in the consumer retail industry (brick-and-mortar and omnichannel retailers). Key examples include:
S&P Retail Select Industry Index (U.S.) – A broad U.S. retail stock index maintained by S&P Dow Jones Indices. It represents the retail segment of the S&P Total Market Index and comprises stocks from multiple retail sub-industries: apparel retail, automotive retail, department stores, broadline (general) retail, computer & electronics retail, drug stores, food retail, consumer staples retail, and specialty. This index is modified equal-weighted (each constituent’s weight is balanced rather than purely cap-weighted) to avoid selective concentration.
Scope: U.S. companies across large-, mid-, and small-cap ranges.
Publisher: S&P Dow Jones Indices.
Use: It serves as a benchmark for the U.S. retail sector’s performance and underlies the popular SPDR S&P Retail ETF (ticker XRT).
MSCI World Retailing Index (Global) – A global equity index covering retail companies in developed markets. All constituents are classified in the GICS “Retailing” industry group (within Consumer Discretionary). It captures large and mid-cap retail stocks across 23 developed countries.
Scope: Global (developed markets).
Publisher: MSCI.
Use: Used by investors to track worldwide retail sector performance relative to broader indices.
Note: In addition to these formal indices, various retail sector ETFs provide composite exposure. For example, the SPDR S&P Retail ETF (XRT) tracks the S&P Retail index, and other indexes like the Dow Jones U.S. Retail Index or Nasdaq’s retail indices also exist, though the S&P and MSCI benchmarks are among the most cited.
E-Commerce and Digital Retail Indices
With the growth of online commerce, several indices specifically track e-commerce and internet retail businesses. These often include companies involved in online retail platforms, marketplaces, digital payments, and supporting technologies. Notable indices include:
S&P Global E-Commerce Ecosystem Index (Global) – A thematic stock index of 50 companies worldwide involved in e-commerce-related businesses. It defines the e-commerce “ecosystem” across four business areas: (1) online retail (internet shopping platforms), (2) social media (as a driver of e-commerce traffic), (3) electronic payments, and (4) direct e-commerce support/services (technology and logistics supporting online shopping).
Scope: Global (50 leading e-commerce companies from multiple countries). Methodology: The index uses a thematic classification (based on business involvement in e-commerce) and selects 50 companies; specifics on weighting are defined by S&P’s methodology (often modified market-cap weighting with caps). Publisher: S&P Dow Jones Indices (launched 2022).
Use: Provides a benchmark for the e-commerce industry’s equity performance and is cited in analyses of online retail trends.
S-Network Global E-Commerce Index (ECOMX) (Global) – A global index by S-Network/VettaFi that captures companies poised to benefit from growth in e-commerce. It is constructed to represent the breadth of the online commerce space and includes 60 constituents, equally weighted, allocated across four segments: online marketplaces, online retailers, content/navigation services, and e-commerce infrastructure. For example, it contains firms like Amazon and eBay (marketplaces), traditional retailers with significant online sales, digital advertising or social media firms that drive online traffic (“content navigation”), and infrastructure companies (warehousing, delivery/logistics, etc.) that enable e-commerce.
Scope: Global (major e-commerce players across regions).
Methodology: Equal-weighted, with 15 stocks from each segment (to ensure even representation of different parts of the e-commerce value chain).
Publisher: S-Network (now part of VettaFi).
Use: Tracked by investment products (for instance, it became the underlying index for the First Trust S-Network E-Commerce ETF in 2022 and used to gauge e-commerce sector trends.
BlueStar E-Commerce US Leaders Index (BECOM) – A U.S.-focused e-commerce index by MarketVector (BlueStar). It tracks the largest and most liquid U.S.-listed companies whose businesses are predominantly e-commerce. Specifically, constituents must derive ≥50% of revenue from e-commerce activities – including online marketplaces/platforms, internet-based payment services, online booking/streaming, or e-commerce software and fulfillment services. The index holds 50 companies and is a modified market-cap weighted index (with individual weights capped at 10% to prevent one company from dominating).
Scope: U.S. companies (including U.S. listings of global firms) in e-commerce and related tech/services.
Publisher: MarketVector Indexes (BlueStar).
Use: Provides a benchmark for U.S. e-commerce leaders; used in analysis of the U.S. digital retail and internet sector. (Launched in 2018, it has index tickers like BECOM; can be licensed for ETFs or derivatives.)
EQM Global Online Retail Index – A specialized index that measures global companies with significant revenue from online retail and e-commerce. It includes firms engaged in online shopping, online marketplaces, travel booking sites, and omnichannel retail (traditional retailers with strong e-commerce arms). For inclusion, a company typically needed a high percentage (e.g. 70%+) of revenue from online sales.
Scope: The EQM index is global in scope and was notable for being rebalanced monthly to keep up with fast-changing industry.
Publisher: EQM Indexes (distributed via partners like VettaFi).
Use: This index was the basis for the Amplify Online Retail ETF (ticker IBUY) for several years, giving investors exposure to a basket of online retail stocks. (IBUY’s index methodology exemplified the focus on pure-play e-commerce revenue.)
In addition, there are other e-commerce or digital economy indices maintained by exchanges and firms. For example, Nasdaq had a “Smart Retail” index (which mixed traditional and online retail) and MSCI and FTSE have their classifications for internet & direct marketing retail. Many of these indices are used by thematic ETF baskets to invest in the e-commerce theme.
Logistics and Supply Chain Indices
Commerce relies on logistics and transportation, so indices in this category track companies that move goods or enable the supply chain. There are both stock indices of transportation companies and economic indices of freight activity:
Dow Jones Transportation Average (DJTA) (U.S.) – The DJTA is a stock market index composed of 20 leading transportation and logistics companies in the U.S. Often called “Dow Transports,” it is the oldest U.S. stock index (even older than the Dow Jones Industrial Average) and is widely seen as a barometer of the American transportation sector’s health.
Scope: The components span airlines, railroads, trucking and freight services, delivery companies, marine transport, and logistics providers – e.g. recent components include UPS (parcel delivery), FedEx, major airlines (Delta, Southwest, etc.), railroad operators (Union Pacific, Norfolk Southern), truckers (J.B. Hunt, Old Dominion), and others.Methodology: Like other Dow Averages, it is price-weighted (higher-priced stocks have more influence), with adjustments for stock splits.
Publisher: S&P Dow Jones Indices.
Use: The DJTA is closely watched in Dow Theory to confirm market trends (transportation often signals economic momentum). Investors follow it as a gauge of shipping and logistic company performance; it’s also tracked via ETFs (e.g., iShares US Transportation ETF). In summary, it is the most recognized index for the U.S. logistics/shipping.
Dow Jones Global Shipping Index (Global) – An equity index focusing specifically on the global maritime shipping industry. This index measures the stock performance of high dividend-paying companies in the global shipping sector. Constituents are typically worldwide shipowners and operators (e.g. dry bulk shippers, oil tanker companies, container liners) known for their dividend yields.
Scope: Global (includes shipping firms from multiple countries).
Methodology: Market-cap weighted with an emphasis on dividend yield in selection.
Publisher: S&P Dow Jones Indices.
Use: It is used to gauge the performance of shipping stocks as a group and has been referenced in maritime industry analysis. (Notably, some thematic funds in the past tracked this index; currently there may not be an active ETF on it, but it provides a benchmark for shipping equity performance.)
Baltic Dry Index (BDI) (Global Freight) – The Baltic Dry Index is not a stock index, but an economic index measuring freight rates for global shipping of bulk commodities. It is often cited alongside financial indices because it reflects commerce activity.
Scope: Global (indicator of worldwide maritime trade volumes and demand).The BDI is a composite of shipping costs on key routes and vessel sizes – specifically, it combines daily price assessments to ship raw materials (like coal, iron ore, grains) across 23 shipping routes for different ship classes. The Baltic Exchange (London) publishes it as a daily figure.
Methodology: It’s a weighted index of time-charter rates for three vessel categories: Capesize (~40% weight), Panamax (~30%), and Supramax (~30%). Publisher: Baltic Exchange.
Use: The BDI is widely regarded as a bellwether of international shipping activity and broader economic conditions – when it rises, it suggests higher demand (and cost) for moving raw goods, often a sign of economic growth, and when it falls, it signals slack demand. Traders, economists, and even policymakers watch the BDI as a real-time indicator of global commerce health. (Example: an all-time low in the BDI would indicate very weak global trade or oversupply of ships.)
FactSet Supply Chain Logistics Index (Global) – A newer equity index designed to track companies involved in supply chain logistics, freight, and distribution. It is focused on firms that facilitate the shipping and delivery of raw materials and merchandise. This would include freight carriers (rail, trucking, air freight), third-party logistics providers, warehousing and fulfillment companies, and possibly supply chain software or equipment firms.
Scope: Global (with a notable U.S. tilt given many are U.S.-listed).
Methodology: Constructed by FactSet, likely market-cap weighted; includes companies meeting certain revenue or business exposure criteria in logistics. Publisher: FactSet (index is licensed to ProShares).
Use: This index underlies the ProShares Supply Chain Logistics ETF (SUPL), giving investors a way to invest in the “supply chain”. It is cited in discussions on supply chain investment opportunities, especially after global supply challenges highlighted the importance of logistics.
Dow Jones Transportation and Logistics indices: In addition to the broad DJ Transportation Average, there are sub-indexes and sector-specific benchmarks (e.g., Dow Jones Air Freight & Logistics index, or S&P 500 Transportation sub-industry indices) which track narrower groups like air freight & logistics companies (UPS, FedEx, DHL if listed, etc.) or railroad-only indices, etc. These are used for more granular analysis within the commerce-transportation realm. For brevity, the DJTA (20-stock composite) serves as the primary reference for the whole transport sector.
Composite Economic Indicators and Initiatives
Beyond stock indices, several composite indicators and research indices aim to measure the performance or readiness of the commerce sector in broader terms. These often come from academic, private, or governmental organizations:
UNCTAD B2C E-Commerce Index (Global Development Indicator) – An index created by the United Nations Conference on Trade and Development to rank countries on their readiness for online commerce. It is a composite of four indicators, each weighted equally, that reflect fundamentals for e-commerce: (1) adult population with financial accounts (bank or mobile money), (2) internet usage (% of population), (3) availability of secure internet servers per capita, and (4) postal service reliability. This index yields a score (0–100) for each country’s e-commerce infrastructure and uptake environment.
Scope: 150+ countries (both developed and developing).
Publisher: UNCTAD (United Nations).
Use: It’s cited in research and policy to identify e-commerce gaps – for example, a high B2C index correlates strongly with higher online shopping rates in that country. Note: As of 2020/21, the index was being re-evaluated (UNCTAD has explored updating or replacing it), but historically it has been a key benchmark in digital commerce development.
A.T. Kearney Global Retail E-Commerce Index (Private Consulting Index) – A composite index published by consulting firm A.T. Kearney (now “Kearney”) that ranks countries by the attractiveness of their online retail markets. It incorporates variables for both current market size and future growth potential of e-commerce in each country. The index is typically limited to a Top 30 countries ranking, mixing large established markets with smaller high-growth markets.
Scope: Global (with emphasis on emerging markets’ potential).
Publisher: Kearney Global Consumer Institute.
Use: Provided guidance to retailers and investors on where to expand e-commerce operations. For example, in 2015 the index showed the US, China, UK as the top three e-commerce markets, and highlighted fast-improving markets like Belgium and Denmark. This index is updated periodically (though in recent years Kearney’s Global Retail Development Index (GRDI) – which covers overall retail – has gained more attention, and e-commerce-specific reports are more occasional).
IMRG E-Commerce Index (UK) – An industry initiative by the Interactive Media in Retail Group (IMRG) in the UK. It is essentially a benchmark of online retail sales, aggregated from a panel of 220 retailers’ actual sales data, compiled weekly.
Scope: UK online retail sector performance (sales growth rates, etc.).
Publisher: IMRG (in partnership with consultancy Capgemini for analysis).
Use: Acts as a trade index of e-commerce activity, widely cited in UK retail reports to gauge growth rates and seasonal trends (e.g. it reported a return to modest growth in late 2024 after a long post-pandemic decline). While not a stock index, it’s a useful composite indicator of commerce activity in the digital channel.
Logistics Managers’ Index (LMI) (U.S.) – A monthly composite index that tracks the strength of the logistics sector in the United States. It is derived from a survey of supply chain professionals, covering eight key components: inventory levels and costs, warehousing capacity, utilization and prices, and transportation capacity, utilization and prices. These components are combined into a diffusion index value (0 to 100). Readings above 50 indicate expansion/growth in logistics activity, while below 50 indicate contraction.
Scope: U.S. logistics/supply chain conditions (survey-based).
Publishers: A collaboration of academia (institutions like Arizona State, Colorado State, etc.) and the Council of Supply Chain Management Professionals (CSCMP)
Use: The LMI is considered an early warning system for economic shifts – logistics tends to slow before the broader economy in downturns and pick up early in recoveries. For instance, high inventory and low transport capacity might signal upcoming slowdowns. Businesses and economists watch the LMI for real-time insights into supply chain health.
Global Supply Chain Pressure Index (GSCPI) – Developed by the Federal Reserve Bank of New York, the GSCPI is a composite indicator that measures stress in global supply chains. It combines data on shipping rates, delivery times, backlogs, and other transportation and manufacturing indicators across regions into a single index number.
Scope: Global (multiregional data inputs, including Asia, Europe, U.S.). Methodology: Uses a principal component analysis to aggregate various metrics into one index, normalized such that zero represents average conditions and positive values indicate above-normal pressure (stress) in supply chains. Publisher: NY Federal Reserve.
Use: This index gained prominence during 2021–2022 to quantify supply chain disruptions (a spike in the index reflected port congestion, skyrocketing freight costs, etc.). It is cited in economic reports and by central banks to discuss supply chain-driven inflation or delays.
World Bank Logistics Performance Index (LPI) – An international index assessing countries’ logistics efficiency. It scores countries on six dimensions: Customs clearance efficiency, quality of trade & transport infrastructure, ease of arranging international shipments, competence of logistics services, ability to track & trace consignments, and timeliness of deliveries. Countries receive an LPI score (1 to 5 scale).
Scope: Global (160 countries, periodic report every couple of years).
Publisher: World Bank.
Use: The LPI is a benchmark of supply chain friendliness by country, often referenced by governments to identify bottlenecks in trade logistics. For example, a country with a high LPI is considered to have more “logistics-friendly” commerce environments. This indirectly relates to how well commerce can perform in those countries (since efficient logistics support better commerce outcomes).
Other Initiatives: Various other indices and benchmarks exist. For instance, the U.S. Census Bureau’s Retail Sales Indexes and E-Commerce Retail Sales reports measure economic performance of the commerce sector (though not stock indices). Industry groups produce indices like the NRF (National Retail Federation) consumer spending indices, or the Cass Freight Index (tracking shipment volumes and expenditures in North America as a measure of freight activity). While not “commerce indices” per se, they complement the above by providing data on the flow of goods and consumer demand that underlie commerce performance.
Conclusion
While no single “Commerce Index” aggregates all facets of retail, e-commerce, and logistics into one figure, the combination of indices above provides a multifaceted view of commerce performance:
Stock market indices like S&P’s retail and e-commerce indexes, and Dow Jones transportation indexes, track how commerce-related companies are performing financially (stock prices and valuations). These are used by investors to benchmark sector performance (e.g. how are retail stocks doing vs. the broader market, or how are online retail stocks doing globally).
Sector-specific benchmarks (retail vs. e-commerce vs. logistics) allow more granular insight. For example, a global e-commerce index might show growth trends of online-focused companies, whereas a transport index shows the fortunes of shipping and freight companies – together reflecting different links in the commerce value chain.
Economic and composite indicators (like the Baltic Dry Index, LMI, GSCPI, etc.) measure the underlying trade activity and operational health of commerce. They are not directly about stock prices, but about volumes, costs, and efficiency in the movement of goods. These often lead or explain trends in corporate performance – e.g., rising freight indices might precede higher costs for retailers, or an improving LPI might signal easier market entry for logistics providers.
Academic and private initiatives (UNCTAD’s index, Kearney’s index) highlight efforts to create broader “commerce” or digital economy indexes. These are not as continuous or widely traded as financial indices, but they fill the gap in assessing commerce from a readiness and policy perspective (for instance, a “digital commerce readiness” index for cities or countries, like the Kearney India Digital Commerce Index for city-level e-commerce potential).
In practice, analysts and investors often look at a suite of these indicators to get a holistic picture. For example, an analyst might note that the S&P Retail Index is up 10% this year (strong retail stock performance), while the Baltic Dry Index is also rising (indicating robust international trade), and the Logistics Managers’ Index shows expanding capacity (logistics sector growth) – collectively painting a picture of healthy commerce activity. On the other hand, divergence among these indicators can be telling (e.g., e-commerce stocks surging while freight indices slump could imply investor optimism in digital sales even as physical trade slows).
In summary, there is no single “Commerce 500” index analogous to the S&P 500, but by consulting the existing retail, e-commerce, and logistics indices and composite benchmarks, one can closely track the performance of commerce-related businesses both in the U.S. and globally. These indices are regularly cited in financial media, industry reports, and economic research to represent the state of consumer commerce and its supporting supply chain.
Sources:
S&P Dow Jones Indices – Retail Select Industry Index (index description and sub-industry composition); Global E-Commerce Ecosystem Index (press coverage of index launch and scope).
ETF Providers – State Street SPDR XRT Retail ETF (benchmark details for S&P Retail Index); First Trust E-Commerce ETF (index change to S-Network Global E-Commerce Index); ProShares SUPL ETF (FactSet Supply Chain Index description).
VettaFi/ETF Database – Commentary on S-Network ECOMX index and EQM Online Retail Index (global online retail focus).
Dow Jones Averages – Background on Dow Jones Transportation Average (history and components).
Yahoo/Finance sources – Dow Jones Global Shipping Index profile (definition of index focus).
Baltic Exchange / news – Definition of Baltic Dry Index as freight rate composite (routes and ships); its role as a bellwether for trade.
Logistics sector reports – Logistics Managers’ Index (LMI) methodology (diffusion index >50 = growth)and coverage of components ; commentary on logistics as economic leading indicator.
UNCTAD – B2C E-Commerce Index methodology (four indicators, equal weights) and description of what it measures.
Kearney – Global Retail E-Commerce Index highlights (country ranking purpose and variables).
Summary of Kearney’s 2015 E-Commerce Index results (top markets and index design).
IMRG (Parcel & Postal Tech Int’l) – Description of IMRG e-commerce sales index (retailer panel and sales volume).
World Bank / Geo2 – Explanation of Logistics Performance Index as a composite of logistics factors to rate.
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