The Bloomberg Commodity Index (BCOM) is a broadly diversified commodity price index distributed by Bloomberg Index Services Limited. The index was originally launched in 1998 as the Dow Jones-AIG Commodity Index (DJ-AIGCI) and renamed to Dow Jones-UBS Commodity Index (DJ-UBSCI) in 2009, when UBS acquired the index from AIG.[1][2] On July 1, 2014, the index was rebranded under its current name.[3][4]
The BCOM tracks prices of futures contracts on physical commodities on the commodity markets. The index is designed to minimize concentration in any one commodity or sector. It currently has 23 commodity futures in six sectors. No one commodity can compose more than 15% of the index, no one commodity and its derived commodities can compose more than 25% of the index, and no sector can represent more than 33% of the index (as of the annual weightings of the components). The weightings for each commodity included in BCOM are calculated in accordance with rules account for liquidity and production data in a 2:1 ratio, which ensures that the relative proportion of each of the underlying individual commodities reflects its global economic significance and market liquidity. Annual rebalancing and reweighting ensure that diversity is maintained over time.[5][6][7]
Components and weights
edit| Energy | 30.13% | Grains | 23.10% | Industrial Metals | 15.34% | Precious Metals | 18.83% | Softs | 7.35% | Livestock | 5.24% |
|---|---|---|---|---|---|---|---|---|---|---|---|
| WTI Crude Oil | 7.36% | Corn | 5.66% | COMEX Copper | 5.30% | Gold | 14.35% | Sugar | 2.81% | Live Cattle | 3.46% |
| Natural Gas | 7.98% | Soybeans | 5.91% | LME Aluminum | 4.10% | Silver | 4.48% | Coffee | 2.97% | Lean Hogs | 1.78% |
| Brent Crude Oil | 7.64% | Soybean Meal | 3.54% | LME Zinc | 2.49% | Cotton | 1.57% | ||||
| Low Sulphur Gas Oil | 2.78% | Chicago Wheat | 2.82% | LME Nickel | 2.58% | ||||||
| RBOB Gasoline | 2.21% | Soybean Oil | 3.35% | Lead | 0.87% | ||||||
| ULS Diesel | 2.16% | Kansas HRW Wheat | 1.82% |
See also
editReferences
edit- ^ Dunsby, Adam; Nelson, Kurt (May 2010). "A Brief History of Commodity Indexes: An evolution from passive to active indexes" (PDF). Journal of Indexes. Archived from the original (PDF) on 2015-02-03. Retrieved 2015-02-02.
- ^ "DJ-AIG commods index becomes DJ-UBS in acquisition". Reuters. 2009-05-07. Retrieved 2015-02-02.[dead link]
- ^ "Bloomberg Indexes to Oversee Leading Global Commodity Indexes". bloomberg.com. 2014-04-10. Retrieved 2015-02-02.
- ^ "The Bloomberg Commodity Index Family Transition - Frequently Asked Questions" (PDF). Bloomberg. 2014-06-27. Archived from the original (PDF) on 2015-02-03. Retrieved 2015-02-03.
- ^ "The Bloomberg Commodity Index Family - Index Methodology" (PDF). Bloomberg. 2014-06-30. Archived from the original (PDF) on 2015-03-19. Retrieved 2015-02-02.
- ^ "Bloomberg Commodity Index 2020 Target Weights Announced". Bloomberg Professional Services. Bloomberg L.p. Bloomberg. Retrieved 2020-05-06.
- ^ a b "Bloomberg Commodity Index 2024 Target Weights Announced" (PDF). Bloomberg Professional Services. Bloomberg L.p. Bloomberg. Retrieved 2023-12-29.