The Liv-ex 100 and Investables indices are market-cap weighted. This means that when a wine’s price drops, its influence within the index drops also. This has recently been the case for Lafite Rothschild (an expensive wine produced in sizeable quantities): although the super brand has driven the Liv-ex Fine Wine 100 down over the past year, its ability to do so is gradually weakened as its price descends faster than its peers' prices do – a topic we discussed in the August Market Report.
Below are the respective weightings for the wines in the Liv-ex Fine Wine 100 and the Liv-ex Investables Index, presented in the order in which their weightings have moved over the last year (highest to lowest). As you can see, the First Growths’ power has weakened. As a group their weighting has fallen from 73.4% to 68.7% in the Liv-ex 100 and from 65.6% to 55.2% in the Investables Index.
The wines whose weighting have risen year-on-year tend to be those that have had their 2009s added to the Indices recently, in addition to having stable pricing. Of the individual performances, it is no surprise that Lafite’s weighting has fallen furthest in each one of the indices, and by significantly more than the other wines. It is a Right Bank wine, Petrus, whose weighting has risen the most: it is up by 5.4 percentage points in total across all groups.
Liv-ex 100 Index
Liv-ex Investables Index