NEW YORK, Oct. 29, 2015 /PRNewswire/ -- Bloomberg today announced the composition and 2016 target weights for the Bloomberg Commodity Index (BCOM). Launched in 1998, BCOM is a highly liquid and diversified benchmark for the global commodities market. There will be no new commodities added or removed as a result of the annual reconstitution.
The new target weights will be used to determine the Commodity Index Multipliers for 2016. The new multipliers will be calculated on the fourth business day of 2016 and used to express the percentage weights in U.S. dollar-denominated terms.
Target weights of all BCOM components for 2016, as well as their comparative weights in 2015, are provided in the table below:
| Group |
Commodity |
Ticker |
2016 Target Weights |
2015 Target Weights |
| Energy |
Natural Gas |
NG |
8.4488420% |
8.7397550% |
| Brent Crude Oil |
CO |
7.5302370% |
7.1565050% |
|
| WTI Crude Oil |
CL |
7.4697630% |
7.8434950% |
|
| ULS Diesel |
HO |
3.8290390% |
3.7609190% |
|
| Unleaded Gas |
XB |
3.7478780% |
3.6928490% |
|
| 31.03% |
31.19% |
|||
| Grains |
Corn |
C |
7.3587030% |
7.2463450% |
| Soybeans |
S |
5.7038300% |
5.6812590% |
|
| Wheat |
W |
3.3268340% |
3.3276410% |
|
| Soybean Oil |
BO |
2.8375480% |
2.8129680% |
|
| Soybean Meal |
SM |
2.8446630% |
2.7453110% |
|
| HRW Wheat |
KW |
1.1531400% |
1.1705090% |
|
| 23.22% |
22.98% |
|||
| Industrial Metals |
Copper |
HG |
7.6272480% |
7.5375780% |
| Aluminum |
LA |
4.5987080% |
4.5931580% |
|
| Zinc |
LX |
2.5276320% |
2.4041340% |
|
| Nickel |
LN |
2.3593750% |
2.1193960% |
|
| 17.11% |
16.65% |
|||
| Precious |
Gold |
GC |
11.3798610% |
11.9041430% |
| Silver |
SI |
4.2131830% |
4.2760540% |
|
| 15.59% |
16.18% |
|||
| Softs |
Sugar |
SB |
3.6272510% |
3.9956530% |
| Coffee |
KC |
2.2943230% |
2.2121760% |
|
| Cotton |
CT |
1.4931910% |
1.5129990% |
|
| 7.41% |
7.72% |
|||
| Livestock |
Live Cattle |
LC |
3.5666190% |
3.3273920% |
| Lean Hogs |
LH |
2.0621330% |
1.9397640% |
|
| 5.63% |
5.27% |
On an absolute basis, Brent Crude Oil will have the largest weight increase in 2016, rising from 7.16% to 7.53%, surpassing WTI Crude Oil which will decline from 7.84% to 7.47%. Brent Crude Oil overtakes WTI Crude Oil for the first time since its inclusion to BCOM in 2012. Gold will decrease the most from 11.90% to 11.37% and will remain the highest weighted commodity in the index. BCOM will see weight increases in Grains, Industrial Metals and Livestock, while Energy, Precious Metals and Softs decrease in 2016.
Target weights are determined in accordance with the rules described in the index methodology (www.bloombergindices.com/commodity). 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 (e.g., Wheat) 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 and Unleaded Gas); and
- No group may constitute more than 33% of BCOM (e.g. Precious Metals).
For additional information and licensing opportunities, please visit www.bloombergindices.com and {IN } on the Bloomberg Professional Service for daily index performance.
Bloomberg is an independent index provider for the fixed income, commodity and currency markets. Bloomberg meets the needs of investors and product issuers with transparent, accessible and solution-orientated benchmarks. The benchmarks are backed by Bloomberg's technology, vast datasets and broad cross-platform distribution across institutional and media properties.
About Bloomberg
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SOURCE Bloomberg
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