Bloomberg has launched the Bloomberg Global Commodity Transition Metals Index, which aims to track the performance of holding a long position of metal commodities futures contracts spanning industrial, battery, and precious metals.
The new index will provide market participants with a focused benchmark to track the energy transition and better understand the competing forces impacting metal prices.
The selected metals are considered to be key to global energy transition from fossil fuels to a low-carbon economy based on data provided from BNEF, Bloomberg’s research provider covering global commodity markets and the disruptive technologies driving the transition to a low-carbon economy.
The eligible index universe, which initially includes 10 metal commodities across 12 futures contracts, are assessed by BNEF experts on a yearly basis in line with the annual index reconstitution. Constituents are initially weighted according to the underlying trading liquidity of each metal market. Caps and floors are then applied to meet the index criteria for diversification.
