Jump to content

Bloomberg Commodity Index

From Wikipedia, the free encyclopedia
This is an old revision of this page, as edited by Conquerist (talk | contribs) at 00:37, 2 February 2015 (Conquerist moved page Dow Jones-UBS Commodity Index to Bloomberg Commodity Index: use current rather than historic name). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

The Dow Jones-UBS Commodity Index DJ-UBSCI, was renamed on July 1, 2014 to the Bloomberg Commodity Index, BCOM. The Bloomberg Commodity Index is a broadly diversified index that allows investors to track commodity futures through a single, simple measure.

The BCOM is composed of futures contracts on physical commodities. The index is designed to minimize concentration in any one commodity or sector. It currently has 22 commodity futures in seven sectors. No one commodity can compose less than 2% or more than 15% 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 that ensure 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.

See also

  • BCOM website: [1]
  • Methodology: [2]
Retrieved from "https://en.wikipedia.org/w/index.php?title=Bloomberg_Commodity_Index&oldid=645235365"