NEW YORK, Nov. 2, 2023 /PRNewswire/ -- Bloomberg announced today the 2024 target weights and composition for the Bloomberg Commodity Index ("BCOM").
Launched in 1998, with historical information dating back to 1960, BCOM is a widely tracked benchmark for the commodities markets (estimated AUM $105.5B). Composed of 24 exchange-traded contracts on physical commodities, the new BCOM target weights become effective during the 2024 January Roll Period.
As a result of this year's reconstitution, there will be no commodity additions or deletions to BCOM. Lead (LL) will remain in the index for 2024, however, it failed to meet the minimum threshold requirement in the first year. Per the methodology if Lead falls below the threshold for two consecutive years it will be subsequently excluded from the index.
Brent Crude Oil overtakes WTI Crude Oil as the highest oil weight in the Energy group for the first time since 2018. Energy will retain the highest BCOM commodity group weight in 2024, increasing slightly to 30.13%. Due to a lower trend in liquidity, Industrial Metals will decrease to the lowest weight since the inception of BCOM to 15.35%. Gold will drop for the second straight year, decreasing the Precious Metals group to 18.82%. Overall, BCOM will see weight increases in Energy, Livestock, Grains, and Softs, and decreases with Precious Metals and Industrial Metals.
Target weights of all BCOM components for 2024, as well as their comparative weights in 2023, are listed below:
Group |
Commodity |
Ticker |
2024 Target Weight |
2023 Target Weight |
Energy |
Natural Gas |
NG |
7.9841690 % |
7.9388780 % |
WTI Crude Oil |
CL |
7.3620050 % |
7.7716540 % |
|
Brent Crude Oil |
CO |
7.6379950 % |
7.2283460 % |
|
Low Sulphur Gas Oil |
QS |
2.7798210 % |
2.7136480 % |
|
RBOB Gasoline |
XB |
2.2073490 % |
2.1961970 % |
|
ULS Diesel |
HO |
2.1604180 % |
2.0986570 % |
|
30.13 % |
29.95 % |
|||
Grains |
Soybeans |
S |
5.9068480 % |
5.7839800 % |
Corn |
C |
5.6623490 % |
5.5132960 % |
|
Soybean Meal |
SM |
3.5401900 % |
3.5284850 % |
|
Soybean Oil |
BO |
3.3491640 % |
3.2648360 % |
|
Wheat |
W |
2.8184120 % |
2.7939000 % |
|
HRW Wheat |
KW |
1.8189100 % |
1.7543100 % |
|
23.10 % |
22.64 % |
|||
Industrial Metals |
Copper |
HG |
5.2978220 % |
5.2289070 % |
Aluminum |
LA |
4.1056260 % |
4.0856610 % |
|
Zinc |
LX |
2.4945660 % |
2.9053380 % |
|
Nickel |
LN |
2.5842820 % |
2.7796880 % |
|
Lead |
LL |
0.8661400 % |
0.9361220 % |
|
15.35 % |
15.94 % |
|||
Precious Metals |
Gold |
GC |
14.3468000 % |
14.8532180 % |
Silver |
SI |
4.4770770 % |
4.5901960 % |
|
18.82 % |
19.44 % |
|||
Softs |
Coffee |
KC |
2.9741780 % |
2.8579300 % |
Sugar |
SB |
2.8076370 % |
2.5559290 % |
|
Cotton |
CT |
1.5703150 % |
1.5589050 % |
|
7.35 % |
6.97 % |
|||
Livestock |
Live Cattle |
LC |
3.4650870 % |
3.3187010 % |
Lean Hogs |
LH |
1.7828380 % |
1.7432180 % |
|
5.25 % |
5.06 % |
Target weights are determined in accordance with the rules described in the BCOM methodology. The index rules account for liquidity and production data in a 2:1 ratio and are subject to the following requirements for diversification and minimum weights:
Bloomberg Terminal users can visit IN <GO> on the Bloomberg Terminal for index performance and analytics.
About Bloomberg Index Services Limited
Bloomberg's index team has a proven track record in creating industry leading and bespoke indices across asset classes, including best in class fixed income and commodity indices. Bloomberg Index Services Limited (BISL) takes an innovative approach to delivering strategic benchmarks that help market participants address their evolving needs. As an integral part of Bloomberg, BISL has access to a comprehensive range of trusted data and reliable technology for calculations, analytics and workflow automation, along with distribution capabilities that can help amplify the visibility of our customers' products.
About Bloomberg
Bloomberg is a global leader in business and financial information, delivering trusted data, news, and insights that bring transparency, efficiency, and fairness to markets. The company helps connect influential communities across the global financial ecosystem via reliable technology solutions that enable our customers to make more informed decisions and foster better collaboration.
"Bloomberg®", "The Bloomberg Commodity Index" and "BCOM" are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited ("BISL"), the administrator of the indices (collectively, "Bloomberg"). Bloomberg and/or Bloomberg's licensors own all proprietary rights in the Indices. Bloomberg does not guarantee the timeliness, accuracy or completeness of any data or information relating to the Indices. Bloomberg makes no warranty, express or implied, as to the Indices or any data or values relating thereto or results to be obtained therefrom, and expressly disclaims all warranties of merchantability and fitness for a particular purpose with respect thereto. It is not possible to invest directly in an Index. Backtested performance is not actual performance. Past performance is not an indication of future results. To the maximum extent allowed by law, Bloomberg, its licensors, and its and their respective employees, contractors, agents, suppliers and vendors shall have no liability or responsibility whatsoever for any injury or damages - whether direct, indirect, consequential, incidental, punitive or otherwise - arising in connection with the Indices or any data or values relating thereto - whether arising from their negligence or otherwise. This document constitutes the provision of factual information, rather than financial product advice. Nothing in the Indices shall constitute or be construed as an offering of financial instruments or as investment advice or investment recommendations (i.e., recommendations as to whether or not to "buy", "sell", "hold", or to enter or not to enter into any other transaction involving any specific interest or interests) by Bloomberg or a recommendation as to an investment or other strategy by Bloomberg. Data and other information available via the Indices should not be considered as information sufficient upon which to base an investment decision. All information provided by the Indices is impersonal and not tailored to the needs of any person, entity or group of persons. Bloomberg does not express an opinion on the future or expected value of any security or other interest and do not explicitly or implicitly recommend or suggest an investment strategy of any kind. Customers should consider obtaining independent advice before making any financial decisions.
© 2023 Bloomberg. All rights reserved. This document and its contents may not be forwarded or redistributed without the prior consent of Bloomberg.
The BLOOMBERG TERMINAL service and Bloomberg data products (the "Services") are owned and distributed by Bloomberg Finance L.P. ("BFLP") except (i) in Argentina, Australia and certain jurisdictions in the Pacific islands, Bermuda, China, India, Japan, Korea and New Zealand, where Bloomberg L.P. and its subsidiaries distribute these products, and (ii) in Singapore and the jurisdictions serviced by Bloomberg's Singapore office, where a subsidiary of BFLP distributes these products.
SOURCE Bloomberg