The Bloomberg Commodity Index (BCOM) is a broadly diversified
commodity price index 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 acquired the index from
AIG.
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 a 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 asset ...
s on physical commodities on the
commodity markets. 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
*
Reuters/Jefferies CRB Index
*
Rogers International Commodity Index
*
Standard & Poor's Commodity Index
*
NEW-YORK Stock exchange
References
External links
* {{Official website, http://www.bloombergindexes.com/bloomberg-commodity-index-family/
Commodity price indices
S&P Dow Jones Indices
UBS