The Bloomberg Commodity Index (BCOM) is a broadly diversified
commodity price index
A commodity price index is a fixed-weight index or (weighted) average of selected commodity prices, which may be based on spot or futures prices. It is designed to be representative of the broad commodity asset class or a specific subset of commod ...
distributed by
Bloomberg Index Services Limited. The index was originally launched in 1998 as the Dow Jones-AIG Commodity Index (DJ-AIGCI) and renamed to Dow Jones-UBS Commodity Index (DJ-UBSCI) in 2009, when
UBS
UBS Group AG (stylized simply as UBS) is a multinational investment bank and financial services firm founded and based in Switzerland, with headquarters in both Zurich and Basel. It holds a strong foothold in all major financial centres as the ...
acquired the index from
AIG
American International Group, Inc. (AIG) is an American multinational finance and insurance corporation with operations in more than 80 countries and jurisdictions. As of 2023, AIG employed 25,200 people. The company operates through three core ...
.
On July 1, 2014, the index was rebranded under its current name.
The BCOM tracks prices of
futures contract
In finance, a futures contract (sometimes called futures) is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. The item tr ...
s on physical commodities on the
commodity markets
A commodity market is a market that trades in the primary economic sector rather than manufactured products. The primary sector includes agricultural products, energy products, and metals. Soft commodities may be perishable and harvested, w ...
. The index is designed to minimize concentration in any one commodity or sector. It currently has 23 commodity futures in six sectors. No one commodity can compose more than 15% of the index, no one commodity and its derived commodities can compose more than 25% of the index, and no sector can represent more than 33% of the index (as of the annual weightings of the components). The weightings for each commodity included in BCOM are calculated in accordance with rules account for liquidity and production data in a 2:1 ratio, which ensures that the relative proportion of each of the underlying individual commodities reflects its global economic significance and market liquidity. Annual rebalancing and reweighting ensure that diversity is maintained over time.
Components and weights
See also
*
S&P GSCI
The S&P GSCI (formerly the Goldman Sachs Commodity Index) serves as a benchmark for investment in the commodity markets and as a measure of commodity performance over time. It is a tradable index that is readily available to market participants of ...
*
Reuters/Jefferies CRB Index
The FTSE/CoreCommodity CRB Index (FTSE/CC CRB) is a commodity futures price index. It was first calculated by Commodity Research Bureau, Inc. in 1957 and made its inaugural appearance in the 1958 CRB Commodity Year Book.
The Index was original ...
*
Rogers International Commodity Index
The Rogers International Commodity Index (RICI) is a broad index of commodity futures designed by Jim Rogers in 1996/1997. The first fund tracking the index began on July 31, 1998.
Overview
The index was designed to meet the need for consistent ...
*
Standard & Poor's Commodity Index The Standard & Poor's Commodity Index (SPCI) was a commodity price index that measured the price changes in a cross section of agricultural and industrial commodities with actively traded U.S. futures contracts managed by Standard & Poor. The index ...
*
NEW-YORK Stock exchange
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* ...
References
External links
* {{Official website, http://www.bloombergindexes.com/bloomberg-commodity-index-family/
Commodity price indices
S&P Dow Jones Indices
UBS