The index is made up of 23 exchange-traded futures on physical commodities, representing 21 commodities which are weighted to account for economic significance and market liquidity. Weighting restrictions on individual commodities and commodity groups promote diversification.
What is Bloomberg BCOM?
Bloomberg's commodity indices are a family of financial benchmarks designed to provide liquid and diversified exposure to physical commodities via futures contracts. BCOM provides broad-based exposure to commodities, and no single commodity or commodity sector dominates the index.
What comprises Bloomberg Commodity index?
The Bloomberg Commodity Indexes are composed of exchange-traded commodity futures contracts. As a result, these indexes are investable benchmarks. Futures contracts are never taken to delivery, and are instead rolled forward per the index methodology.
A commodity index is an investment vehicle that tracks the price and the return on investment of a basket of commodities. The value of these indexes fluctuates based on their underlying commodities. Commodity indexes vary in the way they are weighted and the commodities that they are comprised of.
What are the major commodity indexes?
Three major indices the S&P GSCI index, the Bloomberg Commodity index and DBIQ Optimum Yield Diversified Commodity Index have become the industry-standard benchmarks for investors in commodities.
What is the most used commodity index?
S&P Goldman Sachs Commodity Index
Is there a commodity benchmark?
Benchmarks for Broad Commodity Investing For commodities, the S&P GSCI Total Return Index is considered a broad commodity index and a good benchmark. It holds all futures contracts for commodities such as oil, wheat, corn, aluminum, live cattle, and gold.
Are commodity prices rising?
In 2021, some commodity prices rose to or exceeded levels not seen since the spike of 2011. Crude oil prices (an average of Brent, WTI, and Dubai) are expected to average $70 in 2021, an increase of 70 percent. They are projected to be $74 a barrel in 2022 as oil demand strengthens and reaches pre-pandemic levels.