Rareview Capital Launches Commodity Index ETF
Rareview Capital LLC has launched the Rareview Bloomberg Commodity Index ETF (BCOM), providing investors with a cost-effective way to add broad commodity exposure to their portfolios.
Las Vegas – Rareview Capital LLC announced the launch of the Rareview Bloomberg Commodity Index ETF, trading under the symbol BCOM. The fund aims to track the Bloomberg Commodity Index Total Return, offering passive market exposure to the global benchmark for commodities.
The ETF is composed of futures contracts for 24 commodities across 22 categories. The index weighting is determined two-thirds by trading volume or liquidity and one-third by world production or global economic significance, with additional criteria for global economic relevance. Sector and individual commodity caps are applied at 33% and 15%, respectively, to limit concentration.
Many portfolios lack dedicated commodity allocations or treat them tactically. This ETF provides broad, systematic exposure, removing the need for advisors to select individual commodities or forecast market performance.
"A seminal question for portfolio construction now is not which commodity will outperform next. It is whether the commodity asset class should have a defined role alongside stocks and bonds," said Neil Azous, Founder and Chief Investment Officer of Rareview Capital. "We believe that answer is YES, and that the industry dominant portfolio of 60% stocks and 40% bonds has begun to shift to 60% stocks, 30% bonds, and 10% commodities."
The ETF is now trading on the exchange. Bloomberg Index Services Limited confirmed its satisfaction with Rareview Capital's choice of their commodity index as a benchmark, noting its reflection of global commodity markets' economic significance and liquidity while maintaining sector diversification.