NEW YORK, USA – Bloomberg announced today the 2024 target weights and composition for the Bloomberg Commodity Index (“BCOM”). Launched in 1998, with historical information dating back to 1960, BCOM is a widely tracked benchmark for the commodities markets (estimated AUM $105.5B).
Composed of 24 exchange-traded contracts on physical commodities, the new BCOM target weights become effective during the 2024 January Roll Period.
As a result of this year’s reconstitution, there will be no commodity additions or deletions to BCOM. Lead (LL) will remain in the index for 2024, however, it failed to meet the minimum threshold requirement in the first year.
Per the methodology if Lead falls below the threshold for two consecutive years it will be subsequently excluded from the index.
Brent Crude Oil overtakes WTI Crude Oil as the highest oil weight in the Energy group for the first time since 2018. Energy will retain the highest BCOM commodity group weight in 2024, increasing slightly to 30.13%.
Due to a lower trend in liquidity, Industrial Metals will decrease to the lowest weight since the inception of BCOM to 15.35%. Gold will drop for the second straight year, decreasing the Precious Metals group to 18.82%.
Overall, BCOM will see weight increases in Energy, Livestock, Grains, and Softs, and decreases with Precious Metals and Industrial Metals.
Target weights of all BCOM components for 2024, as well as their comparative weights in 2023, are listed below:
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 for diversification and minimum weights:
- No group may see its weight exceed 33%
- No single commodity, together with its derivatives, may see its weight exceed 25%
- No single commodity may see its weight exceed 15%
Bloomberg Terminal users can visit IN <GO> on the Bloomberg Terminal for index performance and analytics.
