NEW YORK, Nov. 9, 2021 /PRNewswire/ -- Today Bloomberg announced the composition and target weights for 2022 for the Bloomberg Commodity Index ("BCOM").
Launched in 1998, with historical data available back to 1960, BCOM is a widely tracked benchmark for the commodities market. Assets tracking the benchmark are now over $100bn, the highest level on record. The index references exchange-traded contracts linked to 23 physical commodities, and the 2022 target weights will be implemented during the standard January 2022 index roll.
As a result of this year's reconstitution, there will be no commodity additions nor deletions in BCOM. The precious metals sector was the only group to see a weight increase in 2022, driven by increases in both gold and silver. Gold's target weight increased by 0.35%, hitting BCOM's single commodity limit of 15%. Despite a slight decrease, the energy sector retains the highest weight, at 29.8%.
Overall, BCOM will see sector target weight decreases in energy, grains, softs, livestock and industrial metals. The target weights for all BCOM components for 2022, as well as their comparative weights in 2021, are listed below:
2022 Target Weight
2021 Target Weight
WTI Crude Oil
Brent Crude Oil
Low Sulphur Gas Oil
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 regarding capping and diversification:
No sector weight can exceed 33%
The aggregate weight for each single commodity and its derivatives cannot exceed 25%
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