Bloomberg Commodity Index (BCOM) 2019 Target Weights Announced

Bloomberg announced today the 2019 target weights and composition for the Bloomberg Commodity Index (“BCOM”).  Launched in 1998, BCOM is the most widely used benchmark for the commodities market, tracked by approximately $85 billion in assets.

As a result of the annual reconstitution, Low Sulphur Gas Oil will be added to BCOM in 2019. The benchmark will be composed of 23 exchange-traded contracts on physical commodities. The 2019 target weights will be effective January 2019.

Energy will remain the largest commodity group in BCOM in 2019, despite reaching its lowest weight in 18 years at 30.34%. The index will see weight increases in Precious Metals, Grains and Industrial Metal groups. Gold will remain the highest weighted constituent, increasing in weight to 12.24%.  Target weights of all BCOM components for 2019, as well as their comparative weights in 2018, are listed below:

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 weightings:

• No single commodity may constitute more than 15% of BCOM
• No single commodity, together with its derivatives, may constitute more than 25% of BCOM (e.g., WTI Crude Oil and Brent Crude Oil, together with ULS Diesel, RBOB Gas, and Low Sulphur Gas Oil)
• No group may constitute more than 33% of BCOM (e.g., Precious Metals)

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

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