Bloomberg Commodity Complex ETF - Global X ETFs - Australia
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BCOM

Bloomberg Commodity Complex ETF

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Overview Performance Holdings & Characteristics Research Documents Announcements FAQs

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 11 Sep 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 11 Sep 2024

NAV/Unit (A$) 9.78550000
iNAV 9.8234
iNAV as of 05:29 PM
Currency (NAV) AUD
Shares Outstanding 3,742,118
AUM (A$) 36,618,409.71
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
Distribution History View

Performance Table As of 11 Sep 2024

Total Return (Fund) Total Return (Benchmark) Tracking Difference Tracking Error
1 Month -1.80% -2.15% 0.36% 0.07%
3 Months -7.15% -8.16% 1.01% 0.14%
1 Year -8.39% -12.21% 3.82% 0.44%
3 Year p.a. -- -- -- --
5 Year p.a. -- -- -- --
10 Year p.a. -- -- -- --
Since Inception p.a. 0.30% -3.72% 4.03% 0.43%

Top Holdings As of 12 Sep 2024

Full Holdings (.xlsx)
Weight (%) Name Bloomberg Ticker Market Price (Local) Notional Value (A$)
17.32 GOLD 100 OZ FUTR Feb25 GCG5 Comdty 2,564.30 6,345,287
6.51 BRENT CRUDE FUTR Mar25 COH5 Comdty 69.56 2,386,293
5.92 NATURAL GAS FUTR Jan25 NGF25 Comdty 3.35 2,168,367
5.62 COPPER FUTURE Mar25 HGH5 Comdty 4.18 2,059,403
5.43 SILVER FUTURE Mar25 SIH5 Comdty 29.29 1,990,393
5.03 CORN FUTURE Mar25 C H5 Comdty 4.24 1,841,477
3.84 COFFEE 'C' FUTURE Mar25 KCH5 Comdty 2.44 1,405,625
3.80 WTI CRUDE FUTURE Jan25 CLF5 Comdty 65.77 1,391,096
3.50 LIVE CATTLE FUTR Feb25 LCG5 Comdty 1.78 1,282,133
3.45 NATURAL GAS FUTR Mar25 NGH25 Comdty 2.93 1,263,973
2.78 SOYBEAN FUTURE Jan25 S F5 Comdty 10.19 1,016,989
2.64 WHEAT FUTURE(CBT) Mar25 W H5 Comdty 5.98 966,140
2.52 WTI CRUDE FUTURE Mar25 CLH5 Comdty 65.43 922,555
2.50 LME PRI ALUM FUTR Jan25 LAF25 Comdty 2,382.68 915,290
2.45 SUGAR #11 (WORLD) Mar25 SBH5 Comdty 0.19 897,130
1.87 SOYBEAN FUTURE Mar25 S H5 Comdty 10.34 686,468
1.86 LEAN HOGS FUTURE Feb25 LHG5 Comdty 0.76 682,836
1.78 SOYBEAN MEAL FUTR Jan25 SMF5 Comdty 322.20 653,779
1.69 KC HRW WHEAT FUT Mar25 KWH5 Comdty 6.01 617,458
1.69 LME PRI ALUM FUTR Mar25 LAH25 Comdty 2,406.92 617,458
1.61 SOYBEAN OIL FUTR Jan25 BOF5 Comdty 0.39 588,401
1.57 LME ZINC FUTURE Jan25 LXF5 Comdty 2,778.61 573,873
1.49 LME NICKEL FUTURE Jan25 LNF5 Comdty 16,204.45 544,816
1.35 COTTON NO.2 FUTR Mar25 CTH5 Comdty 0.71 493,966
1.35 Low Su Gasoil G Jan25 QSF5 Comdty 630.50 493,966
1.20 SOYBEAN MEAL FUTR Mar25 SMH5 Comdty 325.30 439,485
1.11 GASOLINE RBOB FUT Jan25 XBF5 Comdty 1.84 406,796
1.08 SOYBEAN OIL FUTR Mar25 BOH5 Comdty 0.40 395,899
1.05 LME ZINC FUTURE Mar25 LXH5 Comdty 2,789.61 385,003
1.03 NY Harb ULSD Fut Jan25 HOF5 Comdty 2.13 377,739
1.00 LME NICKEL FUTURE Mar25 LNH5 Comdty 16,366.45 366,843
0.90 Low Su Gasoil G Mar25 QSH5 Comdty 631.75 330,522
0.75 GASOLINE RBOB FUT Mar25 XBH5 Comdty 1.87 276,040
0.68 NY Harb ULSD Fut Mar25 HOH5 Comdty 2.13 250,615
0.49 LME LEAD FUTURE Jan25 LLF5 Comdty 2,002.34 177,973
0.33 LME LEAD FUTURE Mar25 LLH5 Comdty 2,026.34 119,859
Holdings are subject to change.

Country/Region Breakdown As of 12 Sep 2024

Country/Region Weight (%)
United States 80.3
Britain 18.9
Other/Cash 0.8

Research

Introducing BCOM: The All-In-One Commodities Basket

Read More

BCOM - Top 16 Most Frequently Asked Questions

Read More

Documents

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 Commodity Complex ETF (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 Commodity Complex ETF 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 Commodity Complex ETF (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 Commodity Complex ETF (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 Commodity Complex ETF (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 Commodity Complex ETF, 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 Commodity Complex ETF 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 Commodity Complex ETF?

    For more information on the Global X Bloomberg Commodity Complex ETF (ASX: BCOM), please download our extended frequently asked questions document here.

  • Why did the fund name change?

    In April 2024 the Australian Securities and Investments Commission (ASIC) introduced a series of changes to ETF product labels and naming considerations. This change aims to provide a clear indication of the type and nature of products and assist investors in understanding the risks associated with different types of ETF products. These naming conventions include primary labels (‘ETF’ and ‘Structured Product’) based on product type and secondary labels (‘Active’ and ‘Complex’) for products with specific risks or strategies.

    The ‘Complex’ label is used where the investment strategy:

    • Uses debt or leverage to make a financial investment;

    • Uses short selling;

    • Uses derivatives, other than disclosed hedging of exchange rate or interest rate risks, to:

    • Gain non-temporary material economic exposure to implement the underlying investment strategy, or

    • Create a net leveraged or net inverse position for the portfolio, or

    • Otherwise meets the hedge fund criteria in Regulatory Guide 240.


      • You can find more information about this change 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.

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