When investors ask "how is fine wine performing?", they are usually referring, whether they know it or not, to one of the Liv-Ex family of indices. Liv-Ex (the London International Vintners Exchange) is the professional fine wine trade's benchmark exchange and its indices are the closest equivalent the market has to an equity index. Understanding what they measure, and what they do not, is essential before making any investment decision based on fine wine performance data.
The Liv-Ex 100
The Liv-Ex 100 is the headline index, the most cited figure in fine wine investment reporting. It tracks the mid-market price of the 100 most actively traded wines on the Liv-Ex exchange, weighted by trade frequency. The composition is reviewed quarterly and can change as trading patterns shift.
The Liv-Ex 100 is dominated by Bordeaux First Growths across multiple vintages, which reflects both the depth and the liquidity of that market. In practical terms: if a client asks how their broadly diversified fine wine portfolio is performing, the Liv-Ex 100 is the most appropriate benchmark.
The Liv-Ex 1000
The Liv-Ex 1000 is the broadest index in the family. It covers 1,000 wines across Bordeaux, Burgundy, Champagne, Italy, and the Rest of the World, weighted by price. It is a more representative picture of the overall fine wine market and is less sensitive to Bordeaux price movements than the 100.
For a portfolio with meaningful Burgundy and Italian exposure, which Cellar Advisor typically recommends at 20–35% allocation, the Liv-Ex 1000 is a more accurate benchmark than the 100. Performance comparisons using the wrong index can overstate or understate portfolio returns significantly.
The Bordeaux 500 and First Growth 50
Bordeaux 500
The Bordeaux 500 tracks 500 wines across the left bank, right bank, and Sauternes. It is more granular than the 100 for Bordeaux-heavy portfolios, capturing Second and Third Growth movements that the 100 ignores. The 2023–2024 Bordeaux correction is visible far more sharply in the Bordeaux 500 than in the broader 1000.
First Growth 50
The First Growth 50 tracks the five Bordeaux First Growths (Lafite, Latour, Margaux, Mouton Rothschild, and Haut-Brion) across 10 recent vintages each. It is the most liquid sub-segment of the market and the most sensitive to macro sentiment shifts. Institutional investors use it as the finest available proxy for overall market direction.
The right benchmark for a portfolio depends entirely on its regional composition. Using the wrong index is one of the most common mistakes in fine wine performance reporting.
Burgundy 150 and Champagne 50
The Burgundy 150 and Champagne 50 are regional sub-indices that track 150 and 50 wines respectively. They are essential tools for advisors managing regional allocation. The Burgundy 150 has, over the past decade, materially outperformed the broader Liv-Ex 100, reflecting both the allocation-constrained supply of top Burgundy and the global growth in collector demand.
What the indices do not measure
There are two important limitations to understand before using Liv-Ex data. First, the indices measure mid-market prices, the midpoint between best bid and best offer on the exchange. They are not transaction prices. When you sell, you sell at the best offer; when you buy, you buy at the best bid. The spread between bid and offer on less liquid wines can be 5–10%.
Second, the indices do not capture storage costs, insurance, or acquisition costs. A net return calculation for a fine wine portfolio must deduct these from the gross index return. At LCB Eton Park, storage costs approximately £12–18 per case per year, modest relative to a £5,000+ case value, but non-zero over a ten-year holding period.
How we use index data
At Cellar Advisor, we use Liv-Ex mid-prices to produce annual mark-to-market valuations for every client portfolio. Each valuation shows 12-month performance versus the appropriate benchmark (Liv-Ex 100 or 1000 depending on portfolio composition), and since-acquisition performance for each individual case. We do not smooth returns or use trailing averages. You see the current mark, and you see it against a relevant benchmark.