U.S. Markets closed

Bloomberg Commodity Index 2020 Target Weights Announced

NEW YORK, Oct. 30, 2019 /PRNewswire/ -- Bloomberg announced today the 2020 target weights and composition for the Bloomberg Commodity Index ("BCOM"). Launched in 1998, with historical information going back to 1960, BCOM is the most widely used commodity benchmark. Composed of 23 exchange-traded contracts on physical commodities, the 2020 target weights become effective January 2020.

Bloomberg (PRNewsfoto/Bloomberg)

The precious metals group weight will increase by 1.27% to 17.4%, led by gold. Since the index's inception, precious metals and gold target weights have never been higher. The energy group will dip below 30% for the first time due to a weight decrease in all energy components except WTI crude oil. WTI overtakes natural gas as the highest individual weight since the addition of Brent Crude in 2012. In addition, driven by volume, the spread will widen between WTI and Brent Crude oil target weights to nearly 1%, the most since 2014. Overall, BCOM will see weight increases in precious metals and softs, and decreases in energy, grains, industrial metals, and livestock.

Target weights of all BCOM components for 2020, as well as their comparative weights in 2019:

Group

Commodity

Ticker

2020

2019

Energy

WTI Crude Oil

CL

7.9906450%

7.6578610%

Natural Gas

NG

7.9601350%

8.2601380%

Brent Crude Oil

CO

7.0093550%

7.3421390%

Low Sulphur Gas Oil

QS

2.5990850%

2.6247780%

RBOB Gasoline

XB

2.2583580%

2.2941050%

ULS Diesel

HO

2.1137150%

2.1596670%



29.93%

30.34%

Grains

Corn

C

5.8331390%

5.8921720%

Soybeans

S

5.6367600%

6.0250010%

Soybean Meal

SM

3.2950770%

3.4430260%

Wheat

W

3.0422510%

3.1403970%

Soybean Oil

BO

2.8985800%

3.1037850%

HRW Wheat

KW

1.4859640%

1.2937850%



22.19%

22.90%

Industrial

Metals

Copper

HG

6.9605820%

7.3185670%

Aluminum

LA

4.3266510%

4.4126180%

Zinc

LX

3.4262380%

3.2068700%

Nickel

LN

2.7507970%

2.7093210%



17.46%

17.65%

Precious

Metals

Gold

GC

13.6224130%

12.2425030%

Silver

SI

3.7785780%

3.8878360%



17.40%

16.13%

Softs

Sugar

SB

3.0098940%

3.1480610%

Coffee

KC

2.7121520%

2.4780560%

Cotton

CT

1.4915570%

1.4194190%



7.21%

7.05%

Livestock

Live Cattle

LC

4.0201190%

4.0907470%

Lean Hogs

LH

1.7779520%

1.8491490%



5.80%

5.94%

 

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 subject to the following requirements for diversification and minimum weights:

  • No group may constitute >33% weight
  • No single commodity, together with its derivatives, may constitute >25% weight
  • No single commodity may constitute >15% weight

For additional information and licensing opportunities, please contact commodities@bloombergindices.com or visit bloombergindices.com.

Bloomberg customers can visit IN on the  Bloomberg Terminal for index performance and analytics.

About Bloomberg
Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company's strength – delivering data, news and analytics through innovative technology, quickly and accurately – is at the core of the Bloomberg Terminal. Bloomberg's enterprise solutions build on the company's core strength: leveraging technology to allow customers to access, integrate, distribute and manage data and information across organizations more efficiently and effectively. For more information, visit Bloomberg.com/company or request a demo.

BLOOMBERG, BLOOMBERG INDICES and Bloomberg Commodity Index (the "Indices") are trademarks or service marks of Bloomberg Finance L.P.  Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited, the administrator of the Indices (collectively, "Bloomberg") 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. Back-tested 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.  © 2019 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.

Cision

View original content to download multimedia:http://www.prnewswire.com/news-releases/bloomberg-commodity-index-2020-target-weights-announced-300948642.html