Bloomberg Commodity ETF (Synthetic) - Global X ETFs - Australia

BCOM


Bloomberg Commodity ETF (Synthetic)

Reasons to Consider BCOM

Diversified Exposure

Exposure to a liquid, well-diversified basket of hard and soft commodities which are significant to the world economy and have low correlation with other major asset classes.

Natural Inflation Hedge

Commodities are major consumer price index (CPI) constituents and therefore act as a natural hedge against inflation.

Tactical Allocation

A high conviction vehicle to execute views on commodity cycles.

Product Information As of 21 May 2024

Inception Date 5 Jul 2023
Management Costs (% p.a.) 0.60
Currency Hedged No
Domicile Australia
Legal Form Managed Investment Scheme
SMSF Eligible Yes

NAV Information As of 21 May 2024

NAV/Unit (A$) 11.07560000
iNAV 10.9871
iNAV as of 05:29 PM
Currency (NAV) AUD
Shares Outstanding 3,442,000
AUM (A$) 38,122,129.95
NAV History File View

Product Summary

BCOM invests in a highly liquid, broad-based basket of commodities, including energy, grains, precious metals, industrial metals, softs and livestock.

Product Objective

BCOM seeks to provide investment results that generally correspond to the price, before fees and expenses, of the Bloomberg Commodity Index Excess Return 3 Month Forward.

Trading Details

Ticker BCOM
Bloomberg Code BCOM AU Equity
ISIN AU0000272619
Trading Hours 10:00AM – 4:00PM

Management & Administration

Issuer Global X Management (AUS) Limited
Custodian The Hongkong and Shanghai Banking Corporation Limited, Sydney Branch
Registrar Computershare Investor Services Pty Limited
Trustee Global X Management (AUS) Limited

Benchmark Information

Benchmark Bloomberg Commodity Index Excess Return 3 Month Forward
Provider Bloomberg Index Services Limited
Ticker BCOMF3

Distributions

Distribution Frequency Annually

Performance Table As of 22 May 2024

Total Return (Fund) Total Return (Benchmark) Tracking Difference Tracking Error
1 Month 0.51% -0.03% 0.54% 0.52%
3 Months 10.41% 9.22% 1.19% 0.54%
1 Year -- -- -- --
3 Year p.a. -- -- -- --
5 Year p.a. -- -- -- --
10 Year p.a. -- -- -- --
Since Inception 10.51% 6.66% 3.85% 0.61%

Top Holdings As of 22 May 2024

Weight (%) Name Bloomberg Ticker Market Price (Local) Notional Value (A$)
15.30 GOLD 100 OZ FUTR Dec24 GCZ4 Comdty 2,495.90 5,834,262
8.53 NATURAL GAS FUTR Nov24 NGX24 Comdty 3.20 3,252,997
6.92 BRENT CRUDE FUTR Nov24 COX4 Comdty 81.40 2,637,871
6.71 WTI CRUDE FUTURE Nov24 CLX4 Comdty 76.81 2,558,622
6.14 COPPER FUTURE Dec24 HGZ4 Comdty 5.03 2,339,743
5.52 SILVER FUTURE Dec24 SIZ4 Comdty 32.86 2,105,768
5.19 CORN FUTURE Dec24 C Z4 Comdty 4.82 1,977,460
5.00 SOYBEAN FUTURE Nov24 S X4 Comdty 12.13 1,905,758
4.39 LME PRI ALUM FUTR Nov24 LAX24 Comdty 2,766.28 1,675,558
3.26 LIVE CATTLE FUTR Oct24 LCV4 Comdty 1.83 1,241,573
3.10 SOYBEAN MEAL FUTR Dec24 SMZ4 Comdty 368.60 1,181,193
3.06 COFFEE 'C' FUTURE Dec24 KCZ4 Comdty 2.15 1,166,098
2.98 LME NICKEL FUTURE Nov24 LNX4 Comdty 21,514.99 1,135,907
2.97 WHEAT FUTURE(CBT) Dec24 W Z4 Comdty 7.40 1,132,134
2.87 SOYBEAN OIL FUTR Dec24 BOZ4 Comdty 0.47 1,094,396
2.69 LME ZINC FUTURE Nov24 LXX4 Comdty 3,160.63 1,026,468
2.47 Low Su Gasoil G Nov24 QSX4 Comdty 764.00 943,445
2.17 SUGAR #11 (WORLD) Oct24 SBV4 Comdty 0.19 826,458
1.98 GASOLINE RBOB FUT Nov24 XBX4 Comdty 2.19 754,756
1.87 KC HRW WHEAT FUT Dec24 KWZ4 Comdty 7.37 713,244
1.87 LEAN HOGS FUTURE Oct24 LHV4 Comdty 0.84 713,244
1.84 NY Harb ULSD Fut Nov24 HOX4 Comdty 2.51 701,923
1.29 COTTON NO.2 FUTR Dec24 CTZ4 Comdty 0.75 490,591
0.86 LME LEAD FUTURE Nov24 LLX4 Comdty 2,362.69 328,319
Holdings are subject to change.

Country/Region Breakdown As of 22 May 2024

Country/Region Weight (%)
United States 78.7
Britain 20.3
Other/Cash 1.0

Research

FAQs

  • Why invest in commodities?

    Investors often put diversification at the heart of portfolio construction. But effective diversification can sometimes require more than simply allocating across bond and share markets. To this end, many investors use commodities as a diversifier, as different and uncorrelated factors drive their performance to shares and bonds. The uncorrelated properties of commodities mean that this asset class may outperform when shares struggle.

    Moreover, commodities naturally tend to perform when inflation rises, given their prevalence in inflation-measuring consumer price index baskets. This provides powerful diversification for investors and enhances the opportunity to improve risk-adjusted returns.
  • Which commodities are included in Global X Bloomberg Commodities ETF (Synthetic) (ASX: BCOM)?

    Bloomberg Commodity Index Excess Return 3-Month Forward comprises a highly liquid, broad-based basket of commodities. Generally, commodities fall into six categories: energy (e.g. oil, gas and diesel), precious metals (e.g. gold, silver and platinum), industrial metals (e.g. copper, aluminium and zinc), livestock (e.g. live cattle and lean hogs), grains (e.g. wheat and soybeans) and softs (e.g. coffee, cotton and sugar).
  • Does Global X Bloomberg Commodities ETF (Synthetic) physically hold commodities?

    Apart from precious metals like gold and silver, it is impractical for ETFs to invest directly in broad commodities. This is because of a range of obstacles, including perishability, storage, transport, standardisation, and secondary market liquidity. For example, an ETF that tried to provide exposure to physical oil would have to arrange storage for barrels. As this is not cost-effective or efficient and generally not feasible, BCOM will invest in commodities via exchange listed futures contracts instead.
  • What does “rolling” a futures contract mean, and why must it occur?

    Global X Bloomberg Commodities ETF (Synthetic) (ASX: BCOM) tracks an index of commodity futures contracts. Futures contracts are derivative financial contracts that obligate parties to buy or sell an asset at a predetermined future date and price. At the expiry date, also known as the “delivery date”, the contracts are cash settled (or delivered, should investors purchase deliverable futures and exercise that option). Investors wanting long-term commodity exposure are therefore required to sell expiring futures contracts and buy new ones with expiry dates further into the future. This process is called “rolling”, as in rolling over.

    BCOM tracks an index of commodity futures with at least three months until expiry. This provides some insulation from the possibility that futures physically settle.
  • What are contango and backwardation, and how can they impact BCOM’s performance?

    Contango, to simplify, is where futures trade above the spot price of a commodity and fall in value (relative to the spot price) as they approach maturity. It is the normal situation for commodity futures. Backwardation is the opposite of contango. Backwardation is when the current price of an underlying asset is higher than prices trading in the futures market.

    Global X Bloomberg Commodities ETF (Synthetic) (ASX: BCOM) will invest in commodities futures contracts that need to be rolled as they near expiry. Contango and backwardation may, positively or negatively impact the fund’s performance. As BCOM tracks an index of futures more than three months from expiry, the impact of backwardation and contango may be diluted relative to an index that holds futures until closer to expiry.
  • Why does BCOM use a swap rather than buy commodity futures directly?

    The Bloomberg Commodity Index Excess Return 3 Month Forward, tracked by BCOM, is made of a basket of 25 eligible commodity futures. Trading these individual commodity futures contracts directly is operationally complex and costly, making swaps a more efficient and cost-effective way to manage the ETF.

    Globally, broad commodities ETFs often use swaps of various kinds. This is not a structure unique to Global X Bloomberg Commodities ETF (Synthetic) (ASX: BCOM).
  • What is a swap?

    Swaps are a service provided by banks, usually the major global investment banks like JP Morgan, UBS, and Goldman Sachs. Fund managers use them to follow indexes or access markets that they may find operationally burdensome or expensive to invest in directly.

    For Global X Bloomberg Commodities ETF (Synthetic), we use an unfunded swap to access commodity futures markets to track the index.
  • What are the risks of using a swap?

    There are several risks to using a swap. A key one of which is credit risk via the swap counterparty. The Global X Bloomberg Commodities ETF (Synthetic) relies on a swap counterparty to achieve its index return; should our swap counterparty suffer credit stress or default, BCOM could suffer losses. These potential losses could include the 10% risk margin held by the counterparty.

    As the swap is unfunded, 90% of its assets remain within the fund. This ultimately limits counterparty exposure.
  • Want more information on Global X Bloomberg Commodities ETF (Synthetic)?

    For more information on Global X’s Bloomberg Commodities ETF (Synthetic) (ASX: BCOM), please download our extended frequently asked questions document here.

Global X Management (AUS) Limited (“Global X”) (Australian Financial Services Licence Number 466778, ACN 150 433 828) is the product issuer. Offers of interests in any retail product will only be made in, or accompanied by, a Product Disclosure Statement (PDS). In respect of each retail product, Global X has prepared a target market determination (TMD). Each PDS and TMD is available at www.globalxetfs.com.au. The information on this website is general in nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information, you should consider the appropriateness of the information having regard to your objectives, financial situation or needs and consider seeking independent financial, legal, tax and other relevant advice having regard to your particular circumstances. Any investment decision should only be made after obtaining and considering the relevant PDS and TMD. Investments in any product issued by Global X are subject to investment risk, including possible delays in repayment and loss of income and principal invested. The value or return of an investment will fluctuate and an investor may lose some or all of their investment. Past performance is not a reliable indicator of future performance.

Back to Top
git