NEW YORK, Oct. 29, 2020 /PRNewswire/ — Bloomberg announced today the 2021 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 market. Composed of 23 exchange-traded contracts on physical commodities, the 2021 target weights become effective January 2021.

There will be no commodity additions or deletions to BCOM in 2021.

Since inception of the benchmark, Precious Metals and Gold target weights have never been higher. The Precious Metals group increased from 1.6% to 19%, of which Gold increased to 14.6%. Industrial Metals dipped below 16% for the first time in the benchmark’s history. Driven by volume within the Energy group, the spread between WTI and Brent Crude Oil’s weight continued to widen, to the highest level since 2014.

Overall, BCOM target weights will see increases in Energy, Grains, Softs, and Precious Metals, and decreases with Industrial Metals and Livestock. Target weights of all BCOM components for 2021, as well as their comparative weights in 2020, are listed below:

Group

Commodity

Ticker

2021 Target Weight

2020 Target Weight

Energy

WTI Crude Oil

CL

8.1448320%

7.9906450%

Natural Gas

NG

8.0720060%

7.9601350%

Brent Crude Oil

CO

6.8551680%

7.0093550%

Low Sulphur Gas Oil

QS

2.6415190%

2.5990850%

RBOB Gasoline

XB

2.1791840%

2.2583580%

ULS Diesel

HO

2.0820140%

2.1137150%



29.97%

29.93%

Grains

Corn

C

5.5866490%

5.8331390%

Soybeans

S

5.8174090%

5.6367600%

Soybean Meal

SM

3.5987640%

3.2950770%

Wheat

W

2.8850050%

3.0422510%

Soybean Oil

BO

3.1955900%

2.8985800%

HRW Wheat

KW

1.5713880%

1.4859640%



22.65%

22.19%

Industrial Metals

Copper

HG

5.3937680%

6.9605820%

Aluminum

LA

4.2083970%

4.3266510%

Zinc

LX

3.2468830%

3.4262380%

Nickel

LN

2.7139540%

2.7507970%



15.56%

17.46%

Precious Metals

Gold

GC

14.6459560%

13.6224130%

Silver

SI

4.3539140%

3.7785780%



19.00%

17.40%

Softs

Sugar

SB

2.9870850%

3.0098940%

Coffee

KC

2.7366190%

2.7121520%

Cotton

CT

1.5110980%

1.4915570%



7.23%

7.21%

Livestock

Live Cattle

LC

3.8464030%

4.0201190%

Lean Hogs

LH

1.7263950%

1.7779520%



5.57%

5.80%

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 over 33% weight;
  • No single commodity, together with its derivatives, may constitute over 25% weight;
  • No single commodity may constitute over 15% weight.

For additional information and licensing opportunities, please contact
[email protected] or visit bloombergindices.com.

Bloomberg terminal users can visit IN < GO > and INP < GO > on the Bloomberg Terminal for index performance and documentation.

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.

“Bloomberg®,” the “Bloomberg Commodity IndexSM” and the names of the other indices and subindices that are part of the Bloomberg Commodity Index family (such indices and subindices collectively referred to as the “BCOM Indices”) are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited, the administrator of the indices (collectively, “Bloomberg”). Bloomberg does not guarantee the timeliness, accuracy or completeness of any data or information relating to the BCOM Indices or make any warranty, express or implied, as to the BCOM 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, neither Bloomberg nor any of its subsidiaries, affiliates, licensors, employees, contractors, agents, suppliers and vendors shall have any liability or responsibility whatsoever for any injury or damages – whether direct, indirect, consequential, incidental, punitive or otherwise – arising in connection with the BCOM 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 advice. Nothing in the BCOM 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 enter into any other transaction involving a specific interest) by Bloomberg or a recommendation as to an investment or other strategy. Data and other information available via the BCOM Indices should not be considered as information sufficient upon which to base an investment decision. All information provided by the BCOM Indices is impersonal and not tailored to the needs of any specific person, entity or group of persons. Bloomberg does not express any opinion on the future or expected value of any security or other interest and does not explicitly or implicitly recommend or suggest an investment strategy of any kind. Customers should consider obtaining independent advice before making any financial decisions.

The data included in these materials are for illustrative purposes only. © 2020 Bloomberg. All rights reserved.

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