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.

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:

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 [email protected] or visit bloombergindices.com.

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