California (50 index) here we come…

Back in July, we noted that Dominus 2014 was the top traded US wine by value in 2018 so far. Keeping with this US trend, Liv-ex has created the California 50 index, which tracks the price performance of the last ten physical vintages of the five most actively traded Californian wines: Screaming Eagle, Opus One, Dominus, Harlan Estate and Ridge Monte Bello.

As the chart above shows, the California 50 index has made steady gains since December 2003. Over the index’s history, the California 50 has returned 207%. This is slightly lower than Liv-ex’s Bordeaux based indices; the Liv-ex 100 (+214%), Bordeaux 500 (+220%) and the Liv-ex 50 (+264%) have all performed better over the long term.

However, unlike these indices, the California 50 has seen little volatility. Over the past 14 years, just three have been negative for the index. By comparison, the Bordeaux 500 has had six negative years over the same period.

California’s short term performance has also been promising. Over a one-year period, the California 50 has significantly outperformed the other Liv-ex indices. Since July 2017 the index is up 15.8%. The second-best performer, the Liv-ex 50, is up just 5.2% over the same period.